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Economy

Federal Government Launches Consultations on $2 Billion AI Investment

Federal Government Launches Consultations on $2-Billion AI Investment

The federal government has launched consultations to determine how to spend its recently announced $2 billion investment in artificial intelligence (AI). This move is part of a broader effort to scale up Canadian-owned infrastructure for researchers and AI developers, who require significant computing power to work with this technology.

The Need for Domestic Computing Capacity

A statement released by the government highlighted the importance of having domestic computing capacity. "Insufficient domestic computing capacity exposes Canadian researchers and firms to fragile international supply chains for AI computing power, posing challenges in terms of cost, security of access, and the privacy and security of Canadian data," it said.

The inputs required for AI are often scarce and expensive. Many AI startups rely on cloud services provided by big tech giants such as Alphabet Inc., Microsoft Corp., and Amazon.com Inc. This reliance on international providers can pose risks related to data privacy and security, as well as expose companies to fluctuations in the global market.

Consultations Begin

The consultations will take place from June 26 to September 6 and will involve researchers and businesses within the field of AI. The Ministry of Innovation, Science and Economic Development will also reach out to key partners, including:

  • Canadian Institute for Advanced Research
  • Vector Institute
  • Alberta Machine Intelligence Institute
  • Québec Artificial Intelligence Institute
  • Digital Research Alliance of Canada

When the consultations are completed, the ministry will publish a What We Heard Report that will inform how to best implement the funding. This report is expected to provide valuable insights on the needs and challenges faced by Canadian researchers and businesses in the field of AI.

The Importance of Domestic Access to Compute Power

The government’s investment in AI is designed to strengthen Canada’s position as a leader in this technology. Innovation, Science and Economic Development Minister François-Philippe Champagne stated, "This consultation will harness Canadian leadership, from researchers to end users, to help make sure that Canada continues to keep its advantage and that our economy is well positioned to take advantage of all the opportunities of AI."

Canada’s Progress in AI

Canada has made significant strides in AI research. In 2017, it became one of the first countries to launch a national AI strategy. However, despite this progress, the country lags behind other G7 nations in computing power. Canadian businesses also lag in AI adoption, with only one in 10 businesses currently using or planning to use generative AI.

However, Canada is home to 10% of the world’s top-tier AI researchers, according to the Organization for Economic Co-operation and Development (OECD). The number of AI patents filed by Canadian inventors increased by 57% in 2022-23 compared to the previous year. This indicates a growing interest in AI research and development in Canada.

Conclusion

The federal government’s consultation on how to spend its $2 billion investment in AI is an important step towards strengthening Canada’s position as a leader in this technology. By engaging with researchers, businesses, and key partners, the government can gain valuable insights into the needs and challenges faced by Canadian companies working with AI.

This investment has the potential to create jobs, drive innovation, and enhance Canada’s competitiveness in the global market. As the consultations continue, it will be interesting to see how this investment is ultimately used to support Canada’s AI ecosystem.

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