Law360 Canada (June 4, 2026, 5:36 PM EDT) -- The federal government’s new national artificial intelligence (AI) strategy indicates that legislative and regulatory changes are coming to facilitate Canada’s transformation into an AI leader among mid-sized nations, while also protecting the privacy and security of Canadians and businesses, as well as the country’s sovereignty.

Unveiled by Prime Minister Mark Carney June 4, the much-anticipated 50-page national plan, titled AI for All, states that the government will introduce new legislation, investments and programs over the next five years “that ensure AI is adopted responsibly, in a way that truly serves all Canadians — building trust, expanding opportunities and reinforcing control of our sovereignty.”

“AI is here. The question is whether it will improve the lives of all Canadians or benefit only a few,” the prime minister said in a statement. “We will build trust so that all Canadians are empowered to use this technology safely and with confidence. AI that builds Canada strong for all: that is our mission.”

In the text of remarks Carney delivered in Toronto, the prime minister explained that the Liberal government’s AI strategy has three guiding principles: “First, trust. We will protect your data, your privacy and your children. Second, opportunity. We will empower Canadian workers, businesses and students with the tools to expand their knowledge, expertise and futures. And finally, sovereignty. We will reinforce Canadian sovereignty so Canadians can make their own choices on how AI is built, governed and used.”

Building trustworthy and reliable AI “needs a safety-first approach grounded in law,” according to AI for All.

The strategy details actions that Ottawa commits to taking in six areas: protecting Canadians, building skills, driving AI adoption, strengthening sovereign infrastructure, scaling Canadian companies and “working with trusted partners.”

The government’s AI blueprint states that “Canada will update the laws and standards that protect Canadians’ fundamental privacy rights, safeguard children’s online activities and protect vulnerable groups from online violence and algorithmic biases. This will include providing Canadians with the legal tools to combat deepfakes, ensure that interactions with chatbots are safe, and hold those responsible for online harms accountable.”

The government said it will strengthen protections for Canadians’ personal information, including against harmful practices such as deepfakes and surveillance pricing, and will introduce an online safety regime to better protect social media and chatbot users.

As well, the government pledged to improve the transparency of AI “so Canadians are better equipped to use AI safely and responsibly, while expanding the capabilities of the Canadian AI Safety Institute to conduct transparent evaluations of AI models.”

“Key actions” pledged by the government in its AI strategy to “strengthen Canadian democracy, safety and privacy” include:

• The introduction of new “consumer privacy legislation to enshrine a fundamental right to privacy, safeguard children’s information from exploitation and harm, and strengthen people’s control over their personal data.”
• The introduction of online safety laws “to protect Canadians in the digital age, ensuring citizens, children and customers are safeguarded.”
• Protection for elections and democratic institutions from AI‑enabled misinformation and foreign interference.
• Continuation of the government’s Privacy Act review, through a lens of how the government uses Canadians’ personal information. “This will include considerations around transparency,” the strategy states.

The government said Canada will create a “Canada Trusted AI Certification” program to help Canadians identify trustworthy AI products in the marketplace.

Ottawa will also “renew funding for the Standards Council of Canada’s AI Program to support our standardization ecosystem, shape global AI standards and grow a robust AI quality assurance ecosystem. This work will enable standards-based AI testing, certification, interoperability and global market access.”

As well, “Canada will accelerate, in partnership with law enforcement and security and intelligence agencies, applied AI research, testing and deployment of Canadian technologies for fraud and extortion prevention, cyber defence, threat detection and data protection.”

As part of its commitment to reinforce Canadian sovereignty, the government said it will:

• “Build the foundations of sovereign Canadian AI: compute, cloud, connectivity, data and talent so Canadian researchers, businesses and public institutions can build and adopt AI on Canadian terms.”
• “Build a world-leading public AI supercomputer and invest in sovereign compute and cloud infrastructure, with a focus on high-performance computing that is sustainable and aligned with Canada’s clean energy expansion, robust environmental standards and tangible benefits for local communities.”
• Support globally competitive Canadian champions by improving access to growth capital, using government procurement as a strategic “anchor customer,” and helping Canadian AI companies access compute, commercialization resources, and intellectual property protections.
• Expand Canada’s AI talent base through investments in the Canadian Institute for Advanced Research AI Chairs program and accelerated entry pathways for highly skilled workers through the Global Talent Stream.

The Liberal government’s AI strategy notes that sovereignty in the AI era depends on three foundations: the compute, cloud and connectivity that turn ideas into systems; the data that fuels them; and the talent that creates and governs them.

“Today, much of that foundation sits beyond our borders,” the government said. “Canadian researchers train models on foreign cloud platforms. Canadian companies store sensitive data in foreign jurisdictions. Government operations rely on infrastructure Canada does not own. And the country’s best AI talent faces constant recruitment pressure from abroad.”

As a result, Canadian data can be subject to decisions, rules and legal regimes beyond Canada’s direct control, observed the government. “AI products built and governed elsewhere can shape Canadian lives without fully reflecting Canadian values, languages, laws or priorities. Moreover, Canadian firms can find themselves competing on infrastructure they do not own, govern or meaningfully influence. Together, these dependencies are a strategic exposure Canada cannot afford to leave in place.”

To mitigate these dependencies, Canada will adopt a “build-partner-buy” approach to building its AI infrastructure. “That means building its key sovereign capabilities domestically whenever possible, while partnering with trusted allies or buying existing market solutions when appropriate.”

To create opportunities with respect to AI, the government said it will:

• Help small and medium-sized businesses adopt AI to support workers, raise productivity and drive breakthroughs in priority sectors such as health, energy, transportation, agriculture, manufacturing, robotics and government services.
• “Provide training and upskilling opportunities for workers from mid-career professionals to frontline workers so they can adapt to AI-enabled workplaces and access new opportunities. This includes employer-led training on AI-enhancing skills.”
• Provide up to 90,000 AI-related jobs and work placement opportunities for young Canadians, “helping them gain experience and thrive in the AI economy.”
• Establish a National AI Literacy Initiative that will offer entry-level AI training for all Canadians. This includes reaching one million entry-level post-secondary students and training more than 3,000 educators with AI learning kits in their classrooms. “Free, accessible AI learning will include practical courses and sector-relevant modules.”
• “Provide access to trusted AI agents for every post-secondary student — from the arts and commerce to science, technology, engineering and mathematics (STEM), and medicine.”
• Launch the first “AI Missions Program, with a flagship health mission to accelerate the adoption of AI in diagnostics, patient care and system efficiency, delivering faster, better care for Canadians while strengthening Canada’s life sciences and health innovation ecosystem.”

To help build trust, the government said it will “strengthen multinational partnerships with trusted allies in areas such as research, talent, compute and procurement.” Moreover, through the newly formed Sovereign Technology Alliance, “we will attract foreign investment, showcase Canadian talent abroad, and open new markets for Canadian firms; and … will leverage 12 international partnerships already signed to expand Canada’s AI industry, attract high-paying careers and advance innovation.”

The government noted in its media release that since March 2025 it has signed agreements and joint statements on AI with Australia, the EU, Finland, Germany, India, Norway, Qatar, Saudi Arabia, Spain, Sweden, the UAE and the U.K. “These partnerships provide the foundation for the safe and responsible development and deployment of AI technologies, strengthen access to compute capacity, foster AI and technology adoption, and deepen connections across government, industry and other stakeholders,” the government said. “With AI for All, we will turn Canadian innovation into stronger companies, better public services, high-paying careers and greater economic security and sovereignty.”

The government said its national AI strategy was informed by a consultation last year that elicited more than 11,000 submissions from workers, entrepreneurs, researchers, students and community leaders across Canada.

Also in the mix were insights from the 28-member “AI Strategy Task Force” that included experts from industry, academia, unions, communities and other groups.

Initial reaction from labour unions to the national AI strategy was positive.

“We welcome the federal government’s proactive approach to this issue and look forward to working together to ensure AI protects rights, strengthens equity and benefits all workers,” Canadian Labour Congress president Bea Bruske said in a statement.

“Canada’s unions are united in calling for stronger AI laws, independent oversight, protections against surveillance and discrimination, and a greater role for unions in shaping how AI is used,” Bruske said. “As these technologies become more deeply embedded in our workplaces and communities, it is critical that they are developed and deployed in ways that protect workers’ rights, address growing concerns about job security, and do not deepen existing inequalities, especially for women and marginalized workers.”

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