As of July 2025, Canada is advancing a comprehensive strategy to position itself as a global leader in the digital economy. This includes large-scale investments in artificial intelligence, modern digital infrastructure, responsible data practices, and the development of a tech-savvy workforce.
Digital Charter and Trusted Governance
At the core of Canada’s digital vision is the Digital Charter, a framework built around ten core principles such as universal access, privacy, transparency, and data control. These principles reflect the growing importance of public trust in the age of digital transformation. A key legislative step has been Bill C-27, which includes the Artificial Intelligence and Data Act (AIDA), designed to regulate AI systems and ensure their development aligns with human rights, safety, and ethical standards.
Major Investments in AI and Digital Infrastructure
The Canadian government has committed over C$2.4 billion to strengthen the country’s digital and AI capabilities. This includes:
- C$2 billion for the AI Compute Access Fund and a national Sovereign Compute Strategy to secure local access to AI computing power
- C$200 million to help regional innovation clusters commercialize AI technologies across sectors like clean energy, agriculture, health, and transportation
- C$100 million to support AI adoption by small and medium-sized businesses through the National Research Council
- C$50 million to establish the AI Safety Institute of Canada to ensure ethical AI development
- Additional funding for regulators to oversee the implementation of AI and data legislation
Upgrading Government Services and Infrastructure
Canada is investing in digital public infrastructure to make government services more efficient and accessible. Platforms such as GC Sign-In and GC Verify allow citizens and businesses to access government services securely. This modernization drive is supported by long-term frameworks like the Digital Ambition 2024–25 and the GC Cloud Strategy, which aim to create scalable, interoperable platforms across federal agencies.
Empowering Small Businesses and Digital Skills Training
Small and medium-sized enterprises (SMEs) are central to Canada’s digital economy strategy. Through the Canada Digital Adoption Program (CDAP), SMEs can receive grants of up to C$15,000 to enhance their digital tools, with support from thousands of digital advisors. As of mid-2025, more than 71,000 businesses have taken advantage of this program.
Workforce development is also a major focus. Programs such as Digital Skills for Youth, Computers for Schools, and industry-led upskilling initiatives are helping prepare both young graduates and mid-career professionals for emerging tech roles, especially in cybersecurity, biotech, and AI.
Cybersecurity: Building Digital Trust
To safeguard the country’s digital future, Canada launched a new National Cyber Security Strategy in 2025. This strategy involves creating a national Cyber Talent and Innovation Hub, labeling IoT products for security transparency, and developing cybersecurity certification standards for government vendors. The approach is multi-sectoral, encouraging collaboration between government, business, and academia.
Modernizing the Financial System
Canada’s digital economy strategy includes updating its financial systems to match the pace of digital innovation. The Bank of Canada is working toward a 24/7 real-time payments system and enhancing oversight for digital wallets and fintech providers. While the government explored implementing a digital services tax, it decided in 2025 to withdraw it to maintain positive trade relations, especially with the United States.
Leadership and Regional Support
The appointment of Canada’s first Minister of Artificial Intelligence and Digital Innovation in May 2025 highlights the country’s political commitment to digital transformation. This leadership role is tasked with overseeing national AI policy and aligning public investments with long-term digital growth.
Across the provinces, regional initiatives are receiving increased funding. For example, British Columbia’s Regional AI Initiative has secured C$32 million to promote AI use in clean tech, public health, and education.
What This Strategy Means for Canada
Canada’s strategy for its digital economy is structured around inclusion, sustainability, and national competitiveness. With digital GDP projected to grow at nearly 9% annually through 2026, these investments will create long-term benefits across industries.
In Summary, the Core Pillars Include:
- A regulatory environment based on transparency and trust
- Strategic investment in AI infrastructure and computing
- Government-wide digital service modernization
- Workforce and SME empowerment through training and funding
- Comprehensive national cybersecurity strategy
- Evolution of digital financial systems and payments
- Clear political leadership and multi-sector collaboration
The Road Ahead
From 2025 to 2030, Canada’s digital economy strategy will increasingly emphasize data sovereignty, secure identity systems, regional innovation, and AI governance. The success of these initiatives will depend on maintaining public trust, encouraging cross-sector innovation, and aligning with international standards. With its current trajectory, Canada is poised to become a global example of how to manage digital transformation responsibly and inclusively.
