Canada Is Open for Investment. But Is It Open for Business?
đź’ˇ AI for All: This Post is Part of a Blog Series on Canada’s National AI Strategy
The Pitch
The federal government’s AI for All strategy positions Canada as a global AI destination: sovereign infrastructure, billions in investment, global partnerships, and a clear signal to the world that Canada is open. While legislation is still evolving, businesses that will benefit most are those that engage with the strategy as it is today, not as it will be in 2030.
Canada’s pitch is grounded in real substance. The country is home to three of the world’s leading AI research institutes: Vector Institute in Toronto, Mila in Montreal, and Amii in Edmonton, all connected through the CIFAR pan-Canadian AI program (CIFAR stands for Canadian Institute for Advanced Research). Its universities, including Toronto, Waterloo, Alberta, and McGill, consistently rank among the top globally for AI research and talent. Canadian companies are also beginning to scale internationally: Cohere, a Toronto-based enterprise AI company, reached a US$7 billion valuation in 2025 and now operates globally, while Waabi, also located in Canada’s largest city, secured a US$1 billion deal with Uber to deploy autonomous trucking at scale.
For business leaders, the more practical question is what the operating environment looks like right now.
The Current Environment
The AI for All strategy deliberately defers comprehensive AI legislation. The previously tabled Artificial Intelligence and Data Act has been set aside and is not expected to be revived. In its place, a distributed governance model relies on existing privacy, consumer protection, and human rights frameworks, with sector-specific rules to follow over time.
This means businesses are operating without AI-specific compliance guidance while simultaneously preparing for significant new privacy obligations. Bill C-36, introduced June 15, 2026, brings fines of up to $25 million or 5% of gross global revenue for privacy violations. Organizations that begin mapping their data flows and documenting AI decision processes now will be better positioned when the rules are finalized.
On infrastructure, Canadian Small and Medium Enterprises (SMEs) currently have limited affordable domestic compute options, which means data and intellectual property often sit on foreign platforms governed by foreign laws. The Compute Access Fund and sovereign infrastructure commitments are designed to close this gap, but the build is still underway.
The Answer
Canada is open for investment and open for business. The conditions are simply more complex during this transition period than the headline numbers suggest.
For businesses that want to reap benefits now rather than later, it is vital to understand which programs are available now, prepare for the privacy framework taking shape, and build AI governance practices that will remain valid as the rules slowly catch up.
#AI#AI_Strategy#Innovation#Canada#OntarioConsulting
References:
Government of Canada — AI for All: Canada’s National Artificial Intelligence Strategy, June 2026
The Globe and Mail — Seven tech firms joined Canada’s $100-million club in 2025, 2026
Miller Thomson — A framework without a rulebook, June 2026
Bill C-36, Protecting Privacy and Consumer Data Act (PPCDA), introduced June 15, 2026
DLA Piper — Canada unveils national AI strategy: Key commitments, regulatory gaps, and what’s missing, June 2026