Canada’s national artificial intelligence strategy: AI for All

Canada's federal government has released its national artificial intelligence (AI) strategy: AI for All, committing more than $2.3 billion to accelerate adoption, strengthen domestic capabilities, and build public trust. The plan aims to produce a three per cent boost to GDP – representing $200 billion in economic growth – and create up to 250,000 new jobs over the next five years.

From a business perspective, the strategy is focused on accelerating the adoption of trusted AI to drive economic growth while strengthening Canada's technological sovereignty and global competitiveness.

Structured around six pillars, the plan introduces a suite of targeted programs and investments spanning talent, capital, and infrastructure, and targets priority sectors such as healthcare, energy and natural resources, transportation, agriculture and manufacturing and robotics.

While implementation details will continue to evolve, the direction is clear: AI is now a central lever for productivity, competitiveness, and long-term growth in Canada.

Accelerating AI adoption across the economy

A central objective of the strategy is to increase business adoption of AI to 60 per cent by 2034, supported by new funding streams and commercialization supports. KPMG Canada research shows only three in 10 (31 per cent) have fully integrated generative AI solutions across their core operations and workflows.

Key initiatives include:

$500 million to expand and enhance the Regional Artificial Intelligence Initiative through regional development agencies
A $200 million AI Missions Program focused on large-scale, high-impact projects
Accelerated public sector procurement of Canadian AI solutions through the Office of Digital Transformation

These measures reflect a shift toward enabling deployment at scale, particularly in sectors where Canada has competitive strengths.

Key takeaway: Funding will lower barriers, but competitive advantage will come from scaling AI. Organizations will need to move beyond pilots and integrate AI across core operations.

Canada has spent years building strong AI capabilities. This strategy focuses on translating that foundation into more tangible economic value. The organizations that lead from here will be those that move decisively from experimentation to enterprise-wide adoption.

Stephanie Terrill

Canadian Managing Partner, Digital and Transformation,

KPMG Canada

Closing the AI skills and literacy gap

The strategy places strong emphasis on building a more AI-ready workforce through training, education, and global talent attraction.

Key measures include:

Providing all Canadians with access to free AI literacy training, with an emphasis on students and educators
$30 million for CanCode to expand youth digital skills programs
Employer-led training and upskilling initiatives, including support for mid-career workers
Expansion of the Global Talent Stream to accelerate access to highly skilled AI talent

These initiatives aim to address both foundational literacy and advanced technical capability across the workforce. KPMG International research shows Canada ranks 44th out of 47 countries in AI literacy and training.

Key takeaway: With enhanced access, training and upskilling supports, talent pipelines will improve over time, but near-term success will depend on internal capability building.

Talent represents one of the greatest levers for unlocking AI value. By investing in reskilling and embracing new ways of working, organizations can fully realize the benefits of AI – complementing broader government support.

Lewis Curley

Partner, People and Change Practice

KPMG Canada

AI as a driver of productivity and workforce transformation

The strategy links AI adoption to broader economic outcomes, including the potential creation of up to 250,000 jobs by 2031.

The plan includes:

90,000 AI-related jobs directly supported through student placements and federal programs
Expanding employer-led AI training efforts, including for mid-career workers and skilled trades
Workforce monitoring and data programs to track AI impacts

The strategy does not introduce new requirements for worker protections or retraining mandates, leaving organizations to manage workforce transitions proactively.

Key takeaway: While headline projections highlight the scale of ambition in Canada's AI strategy, the real impact will depend on execution. Organizations should focus on driving steady, practical gains in productivity and workforce transformation over time.

Building sovereign AI capabilities

A defining element of the strategy is its focus on digital sovereignty - ensuring Canadian control over AI infrastructure, data, and compute.

Key investments include:

Expansion of domestic data centres and compute capacity, targeting 850 MW by 2030
$100 million to connect health data sets for research and AI use
Expansion of national data-sharing initiatives such as the Vital program
Building a public supercomputer for Canadian researchers and small and medium-sized enterprises (SMEs) to access sovereign high performance computing infrastructure

These efforts aim to reduce reliance on foreign providers and strengthen Canada's ability to capture economic value from AI.

Key takeaway: Organizations should expect both improved access to infrastructure and increased expectations around data governance and residency over time.

Access to compute and control over data are becoming strategic advantages for organizations and governments alike. As domestic capacity grows, organizations will need to think more deliberately about where their data resides and how they build scalable, secure AI solutions.

Leigh Harris

Partner and Federal Government Practice Leader

KPMG Canada

Helping Canadian companies scale

To address Canada's scale-up gap, the strategy introduces targeted capital and investment tools.

Key measures include:

A $500 million Canadian Tech Growth Fund to support and potentially take stakes in AI companies
Access to the $25 billion Canada Strong Fund for strategic investments in national AI champions
$130 million in additional funding to national AI institutes for commercialization programs

These initiatives aim to ensure Canadian companies can scale domestically rather than relocating abroad.

Key takeaway: Organizations should watch for more opportunities to partner with, procure from, or invest in emerging Canadian AI leaders.

Canada has strong AI companies, but scaling them has been a challenge. Improving access to capital and market opportunities can turn world class innovation into globally competitive firms, while keeping the jobs, intellectual property, productivity gains, and public benefits of AI rooted here at home.

Dr. Andrew Forde

Head of AI Research

KPMG Canada

Strengthening trust and responsible AI use

The strategy emphasizes the importance of building trust in AI systems, while taking a measured approach to regulation.

Key commitments include:

Future privacy and online harms legislation (timeline yet to be defined)
$50 million to expand the Canadian AI Safety Institute
Development of AI certification program to help Canadians identify trustworthy AI products
Transparency measures such as watermarking AI-generated content

The plan does not yet introduce a comprehensive new AI-specific regulatory framework, suggesting a phased approach over time as dynamics evolve.

Key takeaway: Expectations around responsible AI are increasing. Organizations should act now by building trustworthy governance frameworks and risk management capabilities.

Trust will be a critical enabler of adoption. Organizations that invest early in responsible AI, through governance, transparency, and controls will be better positioned as expectations evolve.

Kareem Sadek

Partner, Trusted AI and Emerging Tech Risk Leader

KPMG Canada

Although the government has not tabled new legislation and regulations as part of its AI strategy, it has committed to addressing key concerns related to AI use, including enhanced privacy protections and online safety requirements. The safety-first approach referenced in the strategy will require further guidance to address specific harms, protecting vulnerable users, safeguarding data involved in AI use - such as confidential or personal information - and the use of AI in critical decisions or in fields traditionally given significant fiduciary accountability, such as health care and law.

Jillian Frank

Partner, National Leader, Legal Transformation, Technology and Managed Services

KPMG Canada

AI for private companies: From funding to value

Canada's AI strategy is designed to help more businesses adopt AI in practical, productivity-enhancing ways. For private companies and SMEs, the strategy's most relevant measures focus on reducing the cost, complexity and uncertainty of getting started.

Key commitments include :

An additional $700 million for the Compute Access Fund for SMEs to access high performance computing infrastructure
Financing and incentives to help SMEs reduce the cost of AI adoption ($500M each through BDC's LIFT program and Regional AI Initiatives; SR&ED tax credit and Productivity Super-Deduction)
Tools to help SMEs assess readiness and prioritize use cases (AI Literacy and Adoption Assessment tool)
Support for entrepreneurs and growing companies commercializing AI-enabled products and services (Small Business and Entrepreneurship Development Program support)

The strategy does not guarantee that AI adoption will create value on its own. That will depend on whether companies move beyond pilots and apply AI to measurable business outcomes.

Key takeaway: The near-term AI opportunity for private companies is targeted modernization: using available funding, tax incentives and sector programs to support practical investments that improve performance and resilience.

Private companies, including SME, need a practical path to productivity, resilience and growth. Canada's AI strategy can help provide owners and entrepreneurs a stronger set of tools – including funding, incentives, sector programs and adoption supports. – to support real business outcomes. However, this requires starting with the problem, building a fundable case, proving the value and scaling only where AI clearly improves the way the business operates.

Dino Infanti

Partner, National Leader – KPMG Private Enterprise Tax

KPMG Canada

Looking ahead

Canada's AI strategy establishes a clear direction: prioritizing adoption, sovereignty, and trust as the foundation for long-term growth. It reflects a deliberate effort to convert Canada's research advantage into tangible economic outcomes.

For organizations, the implications are significant. As more funding, infrastructure, and talent supports materialize, the pace of AI adoption is expected to accelerate.

Organizations that move early – scaling practical, responsible AI use and embedding it into core operations – will be best positioned to lead in the next phase of Canada's AI economy.

If you would like to explore what this means for your organization or discuss how to accelerate your AI journey, we invite you to connect with our team.

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