Canada is allocating $1.76 billion (2.4 billion Canadian dollars) from its federal budget to bolster its artificial intelligence (AI) sector and uphold the nation's "competitive edge" in AI.

The government has unveiled a comprehensive package of measures, including investments in AI-related startups, medium-sized businesses, and research firms, aimed at securing Canada's AI advantage.

In a statement on April 7, Canadian Prime Minister Justin Trudeau emphasized the significant economic potential of AI advancements, particularly in generative AI, which can greatly enhance productivity and reduce the time spent on repetitive tasks.

The investment package includes $1.47 billion allocated to enhancing computing capabilities and other AI-related infrastructure through the new AI Compute Access Fund, which will support leading AI researchers and startups across the country.

Additionally, $147 million will be directed towards AI startups in key sectors such as agriculture, clean technology, healthcare, and manufacturing, while $73.5 million will support small and medium-sized AI scale-up companies to bolster productivity.

Trudeau highlighted the creation of good-paying opportunities, innovation acceleration, and economic growth resulting from these investments.

Noting the significant impact AI has already had in various sectors such as drug discovery, energy efficiency, and housing innovation, Trudeau emphasized the importance of supporting workers potentially affected by the AI boom. To this end, up to $36.8 million will be allocated under Canada's Sectoral Workforce Solutions Program to retrain and reskill workers across different industries.

According to a recent report by CVL Economics, employees in industries such as film and animation are particularly vulnerable to job displacement due to generative AI.

The remaining $36.8 million will be utilized to establish a Canadian AI Safety Institute, aimed at promoting the safe development and deployment of AI technologies.

Canada has positioned itself as a global leader in AI with the introduction of the Pan-Canadian Artificial Intelligence Strategy in 2017, making it the first country to implement a national AI strategy focused on research and commercialization.

Despite its robust AI ecosystem, Canada has also been actively recruiting emerging AI firms from the European Union as part of its AI strategy.

Tenstorrent, one of Canada's prominent AI startups, has recently collaborated with Samsung, a South Korean manufacturing conglomerate, to advance the next generation of AI chiplets to market. Tenstorrent previously secured a $100-million funding round led by Samsung and Hyundai, signaling continued growth and investment in Canada's AI sector.