Canada Artificial Intelligence
Canada’s AI industry is commercializing rapidly and offering opportunities in next generation AI tools. Valued at USD $4.7 billion in 2023, the industry is projected to grow 33.9% annually to reach $20.48 billion by 2028, with generative AI alone expected to contribute up to $167 billion to Canada’s GDP. The industry is backed by the Canadian government’s 2026 National AI Strategy, which amongst other initiatives allocates $360 million for a new Canadian Tech Growth Fund. Canada’s AI investments offer opportunities to supply enterprise software, compute infrastructure, and sector-specific applications.
Canada’s AI ecosystem consists of over 1,500 companies, 10% of the world’s top-tier AI researchers, and elite AI research institutions like Amii, Mila, the Vector Institute, and CIFAR. Furthermore, Canada leverages international partnerships through the Global Partnership on AI (GPAI) and the Canadian Technology Accelerator (CTA) program.
A key driver of the industry is the Canadian government’s Regional Artificial Intelligence Initiative (RAII) which allocated $145 million, beginning in 2024, to boost AI adoption across key sectors including life sciences, health care, energy, advanced manufacturing, agriculture, finance, natural resources and transportation. Concurrently, the federal government in 2024 announced $1.5 billion funding over five years to expand access to computing capabilities through the Canadian Sovereign AI Compute Strategy. The strategy aims to mobilize private sector investment, build public supercomputing infrastructure, and provide access to AI compute funding. These investments equip the Canadian AI industry with dedicated federal funding to potentially procure external AI solutions.
Beyond federal government investments, Canada’s provinces and territories are enabling AI integration and adoption. Ontario’s November 2024 legislation Strengthening Cyber Security and Building Trust in the Public Sector Act provides a clear framework for Ontario’s public-sector AI integration. Meanwhile, Alberta has introduced GovLab.ai to optimize government operations and services. New Brunswick implemented ChatGNB, an AI website, to translate internal government documents. The Yukon government introduced an AI clinical documentation tool to support healthcare delivery. These provincial and territory-led initiatives signal that Canada is actively procuring AI solutions, making it a potential market for providers of AI tech and solutions.
AI firms in Canada face low regulatory barriers to entry. Pending the introduction of Canada’s proposed Artificial Intelligence legislation, AI firms operate under a Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems. Low regulatory barriers allow for more rapid development and scaling of AI tools in Canada than in other regulated global markets.
For more information about Canada’s AI landscape, and how the U.S. Commercial Service in Canada assists U.S. exporters, visit www.trade.gov/canada or contact Commercial Specialist Tracey.Ford@trade.gov