Analyzing critical legal trends and developments across data, cyber, AI and digital regulations from around the world and beyond borders

In brief

On February 2, 2026, the Government of Canada published a report, entitled “Engagements on Canada’s Next AI Strategy: Summary of Inputs” (“AI Summary Report“), which analyzes input received for the purposes of developing a renewed artificial intelligence (“AI“) strategy for Canada. The report was generated following a 30-day national sprint in October 2025, through which the Government obtained responses from over 11,000 Canadians and 28 members of its recently appointed AI Strategy Task Force (the “AI Strategy Task Force“). Key themes that emerged included the need for: (i) ethical, safety-focused AI research that is tied to democratic values, (ii) transparent AI governance and risk-based regulation, (iii) sovereign AI infrastructure and intellectual property protection, (iv) national AI literacy, and (v) strong AI security frameworks and liability laws. These insights will inform Canada’s forthcoming renewed AI strategy, which is expected to be released in 2026.

In depth

By way of background, on September 26, 2025, Canada’s federal Minister of Artificial Intelligence and Digital Innovation Evan Solomon announced (i) the launch of a national sprint to help shape a renewed AI strategy for Canada and (ii) the formation of the AI Strategy Task Force (consisting of representatives from academia, industry, think tanks and NGOs) in order to assist. The announcement came several months after the election of the Liberal Government in April 2025 under Prime Minister Mark Carney’s leadership, and the end of the Artificial Intelligence and Data Act (“AIDA“) in January 2025 after Parliament was prorogued, which was comprehensive AI national legislation proposed by the prior Liberal Government under Prime Minister Justin Trudeau’s leadership.

As part of the national sprint, the Government (through Innovation, Science and Economic Development Canada or “ISED“) sought input on a broad range of AI-related themes, including research and talent, AI adoption across industry and governments, commercialization of AI, scaling Canadian AI champions and more. Over 11,000 Canadians provided input (the “Public Commentators“). Of the Public Commentators who provided self-identifying information, the majority of commentators indicated that they worked in the “IT/tech/cyber” sector (35%) and in “professional, scientific and technical services” (25%).  The majority of commentators also originated from Ontario (39%) and British Columbia (20%). In addition to public input, the Government also received 32 reports from members of its AI Strategy Task Force.

The Eight Pillars Identified by the Consultation:

The AI Summary Report outlined key recommendations that were received from both Public Commentators and the AI Task Force members. These included the following:

  • Research and Talent: Substantial input was received that Canada needs to attract, retain and develop top AI talent and to also develop a national AI talent strategy that treats talent as a “national asset”.  Recommendations included the use of competitive incentives (e.g., compensation, scholarship and fellowships) and immigration support. Regarding research, Public Commentators emphasized that the priority should be on mission-driven and ethical AI research programs that are aligned with public needs.
  • AI Adoption Across Industry and Governments: Many commentators emphasized the need for industry and government to move beyond AI pilots and prototypes to real-world applications that improve productivity and public services. Members of the AI Strategy Task Force emphasized the need for improved coordination among government agencies, academia and industry to support knowledge sharing and capacity building, and also suggested that Canada should develop national AI adoption playbooks. Public Commentators emphasized that AI should augment – not replace – workers.
  • Commercialization of AI: Respondents agreed that Canada should put in place measures to ensure that there will be Canadian ownership of AI-related intellectual property and data, including through structured incentives (e.g., grants, investor tax credits), procurement programs and public-private partnerships to prevent “IP flight”. Suggestions were also received to modernize regulations in order to prevent foreign dominance and to protect creators, and to align commercialization with national interests and ethical considerations.
  • Scaling Canadian Champions and Attracting Investments: Many respondents want Canada to continue to scale domestic AI champions (e.g., through tailored growth supports, mentorship and government procurement), and to remove scaling barriers (e.g., in procurement and funding processes) to help build a domestic market for Canadian AI solutions. Many also stressed the importance for Canada to build its digital and compute infrastructure (e.g., compute centres, data centres), including the creation of a sovereign infrastructure to keep critical AI operations domestic.
  • Safe AI Systems and Public Trust: Submissions emphasized the need for transparent AI governance, accountability, oversight and public engagement in order to build safe AI systems and public trust in AI. Some commentators proposed the use of independent audits, risk-based certification standards, trust labels and transparent dashboards to monitor AI deployments. There was also support for streamlined AI regulatory frameworks that integrate ethical safeguards and include tiered risk assessments, secure data-sharing protocols and clear AI standards for privacy and cybersecurity.
  • Education and Skills: Many respondents proposed a dual approach to AI skills development that involved (i) broad nationwide AI literacy programs for all citizens coupled with (ii) the development of advanced AI expertise for specialized roles.
  • Infrastructure: Commentators emphasized the need for Canada to build a robust and sovereign AI infrastructure, as noted above, and to develop a “national infrastructure roadmap”. To this end, several commentators suggested that Canada should close gaps currently in its AI infrastructure (i.e., address issues in obtaining high-performance compute, data accessibility and connectivity), particularly in rural areas, including through public-private partnerships.
  • Security: Many emphasized the importance of strengthening Canada’s national security framework in the AI domain in order to protect critical infrastructure, data and AI models.  Some also recommended further advancing digital sovereignty and supply chain security to reduce Canada’s reliance on foreign-controlled infrastructures. Many also highlighted the need for AI-enabled cybersecurity and defence capabilities.   

Going forward

On the whole, ISED indicated that commentators across industry, academia and government emphasized the need for Canada to apply a “balanced approach” – one that drives innovation, while safeguarding sovereignty, ethics and public trust.  ISED will now use the insights gathered from this nationwide process to inform a renewed national AI strategy for Canada, which the Government expects to release this year.  This renewed Canadian AI strategy is expected to shape how Canada will govern, support and deploy AI across its economy and public sector, and will also inform policy development to further Canada’s leadership in responsible AI innovation.

Note: Article contributions made by Viesakan Sivaraj, a current student with Baker McKenzie.

Author

Usman Sheikh is Chair of the Blockchain & Fintech Practice. He is a Transactional Partner in Baker McKenzie's Toronto office and is also a member of the Firm's Litigation and Government Enforcement Practice Group. A highly regarded thought leader on blockchain and distributed ledger technology, Usman has briefed the offices of several prime ministers, as well as ministers, on blockchain's disruptive power, and is regularly invited to speak to business leaders and at global blockchain conferences throughout the world.

Author

Michael serves as the head of the Financial Services Regulatory Practice for Canada and is a Transactional Partner in Baker McKenzie's Toronto office. His practice focuses on Canadian financial regulation and compliance for fintechs, financial institutions and financial market participants, online marketplaces, blockchain and web3 devs. Michael has assisted many global companies establish and grow their businesses in Canada.