Economy June 4, 2026 11:26 AM

Canada launches 'AI for all' strategy aiming for 250,000 jobs by 2031

C$500 million tech fund, C$500 million BDC support and new privacy measures form the centrepiece of Ottawa's plan to scale domestic AI

By Priya Menon

The federal government unveiled a national artificial intelligence strategy designed to add 250,000 jobs by 2031 and lift GDP through wider AI adoption. The plan includes a C$500 million Canadian Tech Growth Fund, C$500 million in Business Development Bank of Canada support for SMEs, and C$50 million for AI risk monitoring, alongside proposed consumer privacy measures.

Canada launches 'AI for all' strategy aiming for 250,000 jobs by 2031

Key Points

  • Federal strategy targets 250,000 new jobs in AI by 2031 and projects a 3% boost to GDP.
  • Two C$500 million commitments: Canadian Tech Growth Fund for equity investments in AI firms and C$500 million via the Business Development Bank of Canada to help SMEs adopt AI.
  • C$50 million set aside for monitoring AI risks and proposed consumer privacy legislation addressing children’s data and deep fakes.

Canada introduced a national strategy on artificial intelligence that sets a target of creating 250,000 new jobs by 2031 and establishes a suite of funding and regulatory measures to support domestic AI development.

Presented in Toronto under the banner "AI for all," the plan was introduced by Prime Minister Mark Carney amid a period of growing corporate investment in AI tools intended to accelerate information processing and raise productivity across the economy.

The government projects the strategy will boost national output by roughly 3 percent, and estimates that broader commercialization and adoption of AI could unlock nearly C$200 billion in economic value. Officials noted that Canada’s digital sector presently employs about 800,000 people and contributes more than C$140 billion to gross domestic product, with some 150,000 roles directly connected to AI.

Key financial elements of the strategy include two C$500 million commitments. The Canadian Tech Growth Fund will receive C$500 million to help bridge the financing gap between domestic AI companies and larger U.S. technology firms, with the mechanism allowing the federal government to take equity positions in Canadian AI businesses. Separately, the Business Development Bank of Canada will allocate another C$500 million to assist small and medium-sized enterprises in adopting AI technologies.

On the regulatory front, the plan signals forthcoming consumer privacy legislation intended to strengthen protections for children’s information and online activity, expand consumer control over personal data, and address the challenges posed by deep fakes. The government also proposed a C$50 million investment to support monitoring of emerging AI risks and to enable more transparent evaluation of AI systems. Officials did not provide a timeline for when these regulatory measures would be implemented.

The strategy frames public investment and new rules as complementary tools to increase the commercial scale and marketplace adoption of AI, while aiming to preserve consumer protections. The plan’s fiscal elements and stated GDP and job targets provide concrete markers against which progress may be assessed over the coming decade.

Risks

  • No implementation timeline provided for the proposed privacy and regulatory measures - this creates uncertainty for affected sectors such as technology and consumer services.
  • Effectiveness of the Canadian Tech Growth Fund and BDC allocations in closing the funding gap with U.S. tech firms is not guaranteed - financial sectors and AI startups face execution risk.
  • Monitoring and mitigation of emerging AI risks is funded at C$50 million, which may be insufficient relative to evolving AI challenges - public safety and digital platforms could be impacted.

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