The Canadian federal budget for 2025 allocates over $1 billion to enhance the country’s artificial intelligence and quantum computing sectors. This initiative, led by Prime Minister Mark Carney, aims to integrate AI technology into government operations and establish a sovereign Canadian cloud to safeguard sensitive data. Finance Minister François-Philippe Champagne announced that $925.6 million will be invested over five years in a public AI infrastructure, with $800 million sourced from the previous budget’s funds. This investment seeks to improve AI compute capacity and ensure global competitiveness in a secure environment. Additionally, $334.3 million is earmarked for quantum technology to support Canadian companies and explore its applications in defense.
The budget also introduces several smaller AI initiatives, including partnerships with industry to identify promising projects. Ottawa has already partnered with the AI company Cohere to enhance public service capabilities. An Office of Digital Transformation will be established to implement technology solutions across the federal government, aiming to streamline processes and improve services.
Shared Services Canada, in collaboration with other departments, will develop a Canadian-made AI tool for government use. The Department of Justice and Transport Canada plan to use AI to optimize workflows and reduce costs. Furthermore, $25 million will be allocated to Statistics Canada to launch the Artificial Intelligence and Technology Measurement Program, analyzing AI’s impact on society.
