In its 2024 federal budget, the Government of Canada reaffirmed its commitment to artificial intelligence (AI), launching a series of new initiatives that build on the foundations of the Pan-Canadian AI Strategy. These measures are designed to strengthen Canada’s position as a global leader in responsible AI development.
For companies operating in or adjacent to AI, the expanded strategy presents a wealth of opportunity—offering improved access to funding, critical infrastructure, and regulatory guidance in a fast-evolving and increasingly competitive global market.
Where We’ve Made Progress
Several new and ongoing initiatives reflect Canada’s comprehensive approach to AI development:
- Regional Development Agency Programs
Programs like the Regional Artificial Intelligence Initiative—led by Canada’s Regional Development Agencies (FedDev, Pacifican, PrairiesCan, ACOA, FedNor, CanNor, and CED)—have already shown impact. While now closed, this initiative supported SMEs in commercializing AI-driven products and scaling operations. Companies like ForceN and ACTO benefited from substantial federal investments to advance cutting-edge technologies. - Canada’s Global Innovation Clusters
Five Global Innovation Clusters (Digital Technology, Protein Industries Canada, Next Generation Manufacturing Canada, Scale AI, and Canada’s Ocean Supercluster) continue to promote adoption of homegrown AI solutions. Backed by $125 million in federal funding, these clusters are driving AI integration across key industries. - AI Compute Access Fund
Addressing a critical infrastructure need, the AI Compute Access Fundwill help Canadian companies access the computing power required to train large-scale AI models—reducing reliance on international infrastructure. This program is expected to open this spring. - NRC IRAP Support for AI
Under the National Research Council’s IRAP program, companies now have access to enhanced AI-specific support, including both advisory services and funding for AI R&D and commercialization. - Canadian AI Safety Institute
The creation of the Canadian Artificial Intelligence Safety Instituteunderscores Canada’s commitment to building not only powerful but also safe and ethical AI systems. For technology companies, this signals forthcoming clarity around regulatory expectations for AI product development.
Scale AI: A Steady Force in a Shifting Landscape
One constant in Canada’s evolving AI ecosystem is Scale AI, the country’s AI-focused innovation cluster. Since its inception, Scale AI has driven the integration of AI into supply chains by fostering collaboration among businesses, research institutions, and startups.
In response to recent geopolitical uncertainty, Scale AI announced $30 million in immediate funding to support high-impact projects. For AI companies looking to weather economic challenges or overcome project delays, this is a key moment to secure resources and accelerate development.
A Temporary Pause: Election-Related Delays
Despite this momentum, not everything is moving as quickly as the ecosystem might hope. The upcoming federal election has temporarily delayed the rollout of some initiatives. While many programs have been announced, final decisions on implementation, eligibility, and funding timelines are on hold until a new government is in place.
What This Means for Technology Companies
If you’re a founder in the AI space or building a product that incorporates AI here’s what’s available or coming soon:
- Non-dilutive funding for AI R&D and commercialization
- Infrastructure access, including compute power and technical advisory support
- Regulatory guidance on safe and ethical AI development
The bottom line? Despite short-term delays, Canada’s long-term AI trajectory is promising. The continued federal investment signals a strong intention to create a competitive, secure, and innovation-friendly environment for AI companies.
Next Steps
Stay informed. Explore programs currently open, such as Scale AI, and get ready to engage with newly announced initiatives as the political landscape stabilizes. Whether you’re pre-revenue or scaling, now is the time to align your roadmap with Canada’s AI strategy and prepare for future growth opportunities.
Need support navigating the evolving AI funding landscape? Our team specializes in helping technology companies identify and access the right programs to accelerate growth.
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