Canada Dedicates $1.76bn from Federal Budget to Strengthen National AI Sector
Summary:
Canada's federal budget is allocating $1.76 billion to bolster its Artificial Intelligence (AI) sector, aiming to maintain the nation's competitive advantage in AI. The investment will be used for funding AI-related startups, medium-sized firms, and research entities. The package includes funds for AI infrastructure development, supporting AI startups in various industries, and aiding small and medium-sized AI companies. The investment also addresses re-skilling measures for workers affected by the AI expansion, and establishes a Canadian AI Safety Institute for safe AI deployment and development.
Artificial Intelligence (AI) in Canada receives a generous boost of 1.76 billion dollars (approximately 2.4 billion Canadian dollars) from the federal budget to strengthen its standing in the sector. This investment aims to ensure Canada retains its competitive strength in AI, with funds being directed towards AI-based startups, research firms, and medium-scale businesses, in an effort to reinforce Canada's advantage in this field. Justin Trudeau, the country's prime minister, highlighted AI's potential in revolutionizing the economy, enhancing productivity, and lessening repetitive work.
Trudeau, in Montreal, announced the allocation of the significant amount as part of the forthcoming federal budget intended specifically for reinforcing AI operations. The bulk of the package, about 1.47 billion dollars, will be devoted to enhancing computing facilities and other AI-related infrastructure through the new AI Compute Access Fund, aimed at supporting Canada's top AI experts and budding startups.
Further, 147 million dollars are reserved for AI startups in healthcare, clean technology, manufacturing, and agriculture sectors, while 73.5 million dollars is for small to medium-sized AI companies looking to upscale their productivity. Trudeau accentuated the economic growth, surge in innovation, and the creation of high-paying job opportunities in every generation that these investments will foster. He mentioned how AI has already contributed to substantial advancements made in housing innovation, drug discovery, and energy efficiency in Canada.
There are measures in place, under the Sectoral Workforce Solutions Program worth around $36.8 million, to support workers who might be affected by the rapidly expanding AI industry by helping them to develop new skills and retrain. CVL Economics, a consultancy firm, recently reported that jobs in film and animation sectors are most susceptible to displacement by AI.
The remaining $36.8 million from the budget will be used to establish the Canadian AI Safety Institute to further ensure the safe use and development of AI in the country. Canada announced its Pan-Canadian Artificial Intelligence Strategy in 2017, making it the first country to introduce such a national plan for the research and commercialization of AI.
The market value of Canada's AI sector is estimated around $7.4 billion, according to data from Statistica, with the US market valued at about $106 billion. Canada's AI strategy also includes plans to attract emerging AI companies from the European Union. Among Canada's leading AI startups is Tenstorrent, which collaborated with manufacturing giant Samsung from South Korea last October to develop the next generation of AI chiplets.
Published At
4/8/2024 6:00:02 PM
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