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ARTICLE · 10 NOVEMBER 2026

Investing In Intelligence: What Budget 2026 Means For AI In Canada

Gowling WLG
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Canada's 2026 federal budget introduces sweeping investments in artificial intelligence infrastructure, including plans for 500 megawatts of sovereign computing capacity and financial support for AI companies like Cohere. The budget outlines measures to accelerate AI adoption across the economy and public service while establishing new regulatory frameworks for digital safety and data protection.

CanadaStrategy

On November 5, 2026, the Government of Canada released Budget 2026, Masters of Our Destiny, outlining investments and policy commitments aimed at expanding Canada’s AI infrastructure, supporting adoption across the economy and the public service, and promoting the responsible development of emerging technologies.1

Building on Canada’s National AI Strategy, AI for All, launched in June 2026 with an initial investment of $2.7 billion, the budget includes several measures relevant to Canadian AI developers, businesses and investors.2 The budget also reports that the share of Canadian firms using AI has more than tripled since 2024, increasing from 6.1% to 19.2% in 2026.3

Building Canada’s sovereign AI infrastructure

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