Federal Budget 2025: Is Canada Strong actually weak when it comes to AI?

Federal Budget 2025: Is Canada Strong actually weak when it comes to AI?

By Nicolas Chartier-Edwards
Publication Date: 2025-11-17 18:34:00

Prime Minister Mark Carney’s Liberal government has delivered its first official budget, titled “Canada Strong.” It presents itself as a roadmap for investments made to strengthen national sovereignty through economic productivity and national defense. At the heart of these efforts is artificial intelligence.

Eight federal agencies have identified AI-intensive technologies in the 2025 budget as a way to reduce operating expenses while increasing productivity.

Many of the investments in the budget are aimed at developing the defense industry through the creation and commercialization of so-called dual-use technology – goods, software and technology that can be used for both civilian and military applications – which can include AI.

But is Canada Strong actually weak when it comes to AI?

Given the current legislative landscape and the new budget, we argue that Canada Strong’s AI plan downplays regulation and guardrail development, as funding is primarily focused on…