What the New Carney Government Means for AI and Tech in Canada
If their campaign promises come to fruition, this freshly elected Canadian government led by Mark Carney would oversee a significant shift in Canada’s approach to AI. From streamlining regulatory processes with AI to expanding global market access for Canadian scale-ups, Prime Minister Mark Carney’s campaign platform signals a more assertive, forthright, strategic vision for tech and innovation than we might have seen in the past. In this post, we explore what the next chapter could look like, what to watch for, and the potential ramifications for organizations looking to build and benefit from Canada’s technology future.
What the New Carney Government Means for AI and Tech in Canada

If their campaign promises come to fruition, this freshly elected Canadian government led by Mark Carney would oversee a significant shift in Canada’s approach to AI. From streamlining regulatory processes with AI to expanding global market access for Canadian scale-ups, Prime Minister Mark Carney’s campaign platform signals a more assertive, forthright, strategic vision for tech and innovation than we might have seen in the past. In this post, we explore what the next chapter could look like, what to watch for, and the potential ramifications for organizations looking to build and benefit from Canada’s technology future.

With the results of the federal election now in, Canada enters a new era under Prime Minister Mark Carney. While much of the national conversation has centred on housing, affordability, and climate, there are some important signals in the Liberal platform that point to a strategic shift in how Canada approaches technology, innovation, and artificial intelligence. Particularly what Carney has done differently is rather than siloing technology and AI into its own policy vertical, it has been integrated as an accelerator for policy delivery across high priority files such as the aforementioned housing, infrastructure, and other major projects. This is the key to lasting innovation here in Canada so we are excited about it. 

For those working in and around tech, whether in policy, product, research, investment, or looking to adopt new technologies for your own organization, there are a few key areas worth watching. Here’s our take on how the Carney government may shape the next pivotal phase of Canada’s digital and AI economy.

1. Government Efficiency Through AI

One of the most actionable technology commitments in the new platform is the plan to use AI to streamline regulatory processes, specifically around infrastructure and natural resource approvals. The “one project, one review” framework is designed to reduce delays by eliminating duplicative federal and provincial assessments, with AI playing a key role in decision support and workflow optimization.

Why this matters:

This signals a broader willingness to modernize public service delivery by applying AI to government operations. If implemented effectively, it could create new public-sector use cases and open procurement pathways for Canadian AI firms.

2. Reinvesting in Canada’s AI Legacy

The Liberal platform reaffirms Canada’s historical reputation as a leader in machine learning and deep learning, while acknowledging the need to protect and grow this competitive advantage. To that end, the government proposes creating a new public research agency, the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS) to strengthen domestic innovation in AI, quantum computing, cybersecurity, and other strategic technologies particularly in the Defence sector. The focus on defence makes sense as the Department of National Defence is the Government of Canada’s largest procurer of private vendors by several orders of magnitude and of course it follows a renewed political focus on defence due to the threats on Canadian sovereignty from President Donald Trump.

Why this matters:

Canada’s early contributions to foundational AI research haven’t always translated into scaled commercial success. A renewed public investment framework could help bridge the gap between research and commercialization, and ensure Canadian companies can grow and compete globally. That said, we’d like to see this have a through-line to other outcome-driven sectors—particularly by better connecting innovation leaders with infrastructure, housing, and construction partners. Commercialization support should also go beyond R&D to include targeted efforts around talent retention, scaling private demand, and building a critical mass of Canadian buyers. After all, one thing startups consistently say: they need more customers. The Government of Canada has a clear opportunity to de-risk the purchase of advanced technologies—especially within large enterprises and public-private partnerships.

3. AI-Powered Infrastructure Development

Major infrastructure initiatives, like high-speed rail, critical minerals supply chains, and electricity corridor expansion, are expected to be key pillars of the government’s economic agenda. The platform explicitly notes the use of AI to improve regulatory, environmental, and planning processes for these projects.

Why this matters:

This is a clear signal that infrastructure modernization will be paired with digital innovation. It creates a strong incentive for AI and analytics companies to position themselves as delivery partners to engineering firms and public agencies.

4. Trade Diversification Opens New Tech Pathways

Recognizing geopolitical risks and the need for economic resilience, the Carney government plans to diversify Canadian exports beyond the U.S. A proposed $25 billion export credit facility will support Canadian companies expanding into Europe and Asia.

Why this matters:

This initiative aligns with the global nature of technology markets. For scale-ups and innovation-led firms, it could de-risk expansion into new markets and help secure longer-term global competitiveness.

5. Technology as a Productivity Lever

Canada’s lagging productivity has been a persistent challenge. The new platform links technology adoption, especially automation and clean tech, with productivity gains. Tax incentives for equipment purchases and digital transformation are designed to accelerate uptake across sectors.

Why this matters:

This is an opportunity for enterprise tech providers, consultants, and solution integrators to align their services with national economic priorities. The public sector is now explicitly framing tech adoption as part of a broader productivity strategy.

6. A Workforce Strategy for the AI Economy

To ensure Canadians are equipped to participate in a growing digital economy, the government is proposing a new $15,000 upskilling benefit for workers in priority sectors, including AI and cybersecurity.

Why this matters:

This could help address growing talent shortages in the tech sector and increase domestic capacity. It also reflects a more inclusive view of innovation, where the benefits of growth are shared across the workforce, not just concentrated in a few high-growth firms.

7. Cybersecurity as Strategic Infrastructure

With growing cyber threats and concerns over digital sovereignty, the platform places a clear emphasis on improving Canada’s cybersecurity infrastructure. This includes investments in AI-driven security tools and stronger national coordination.

Why this matters:

Cybersecurity is increasingly viewed as foundational to economic security. These commitments could open funding and procurement opportunities for firms in cybersecurity, data privacy, and digital identity.

Closing Thoughts

The Carney government’s platform suggests a more hands-on role for the federal government in shaping Canada’s tech and AI future. From infrastructure to innovation policy, there’s a consistent theme: technology is not an isolated sector, but a core enabler of national priorities.

For Canadian tech leaders, builders, and investors, the next few years may bring new partnerships, procurement opportunities, and market expansion support, but it will depend heavily on execution. The tone has shifted; the question now is whether the follow-through will match the ambition.

Date
May 1, 2025
Topic
AI and Technology