Prime Minister Justin Trudeau announced on Sunday that the Liberal government has allocated $2.4 billion in its upcoming budget to build capacity in the field of artificial intelligence.

The bulk of this amount – $2 billion – goes to a fund aimed at providing access to computing capabilities and technical infrastructure.

Trudeau made this announcement in Montreal as part of a pre-budget tour.

He said the federal government will soon begin consulting with industry on a new fund to access AI computing and a related strategy to expand the sector in Canada.

Trudeau explained: "We want to help companies adopt AI in a way that will have positive impacts on everyone," adding that $200 million will be allocated to boost AI adoption in sectors such as agriculture, healthcare, and clean technology.

The government plans to launch a $50 million AI Safety Institute to protect against what it calls "advanced or malicious AI systems," and an additional $5.1 million will be allocated to the AI and Data Commissioner’s Office to enforce the proposed AI and Data Act.

Bill C-27 is the first federal legislation specifically targeting AI, and it would update privacy laws and introduce new obligations for "high-impact" systems.

The proposed bill has been studied in committee since September 2023.

Innovation, Science and Industry Minister François-Philippe Champagne said Canada is a global leader in AI.

He continued: "Let’s stop wondering what AI will do to us, and why don’t we start wondering what we want AI to do for us."

Last previous budget announcement

The Liberals prepared their budget on April 16 through a series of campaign-style stops across the country.

Last week’s announcements focused on housing, including money to help build affordable apartments and units. Housing Minister Sean Fraser also said the full housing plan will be released before budget day.

Meanwhile, the federal Conservatives sent a letter to Trudeau outlining their demands regarding the financial plan.

Conservative leader Pierre Poilievre’s letter to Trudeau says the Prime Minister’s "out-of-control inflationary spending" has caused interest rates to rise and that "punitive taxes have pushed people to the brink."

He called on the government to end the carbon price, require cities to allow building 15 percent more homes annually as a condition of receiving federal infrastructure funding, limit its spending, and commit to finding comparable savings.

Poilievre said that if these conditions are met, the Conservatives would agree to support the budget.

But Trudeau responded on Sunday saying: "The job of the opposition leader is to criticize the government, and we understand that. But not to scare people."

Trudeau also insisted that Liberal policies such as the carbon price and funding to accelerate homebuilding do not cause inflation, adding that experts and economists "almost unanimously" agree on that.

He said, "Once again, Pierre Poilievre is wrong, he does not listen to the experts and economists."

The minority government struck a supply and confidence agreement with the New Democrats, which would ensure their support for budgets and other financial measures as long as the Liberals work to advance the NDP’s key priorities, including dental care and pharmacare.