Canada's AI strategy: no new rules, real money

What happened

On June 4, 2026, the federal government released its AI strategy, called AI for All. It's a five-year policy framework and not a statute.

It creates no new binding obligations for businesses. It doesn't replace the standalone AI bill, AIDA, which died with Bill C-27 in early 2025. Organizations using AI remain subject to existing law: privacy, human rights, consumer protection, intellectual property, employment and sector-specific rules.

The strategy does come with money and targets:

• $50 million to expand the Canadian AI Safety Institute.
• $500 million for a LIFT Program, run through the Business Development Bank of Canada, to help SMEs finance AI adoption.
• More than $2 billion in existing investments in Canadian AI compute.
• Proposed: a $500 million Canadian Tech Growth Fund, and another $700 million for affordable sovereign compute for SMEs through the Compute Access Fund.
• Targets: business AI adoption of 60% by 2034, and a public supercomputer by 2031.

Two bills followed the strategy: C-34, the Safe Social Media Act, and C-36, the Protecting Privacy and Consumer Data Act.

So what for your business

There are two takeaways.

First, the absence of an AI-specific law doesn't mean an absence of rules. Your AI system is judged under the privacy, consumer and employment law that already applies. A hiring tool that treats candidates unfairly can already raise human rights issues today, with or without an AI act.

Second, there's funding aimed at companies like yours. Eligibility and timing depend on program details, so it's worth asking early.

What to do this month

1. Review your AI use against existing law. Privacy, consumer protection, employment. Note where a system makes or influences decisions about people.
2. Create a simple AI governance document. Who approves new AI uses, what data goes in, how you test it. A page is enough to start.
3. Look into the LIFT program. Check eligibility and application timing with BDC.
4. Check where your data and compute live. Data sovereignty is a stated theme in the strategy.
5. Follow Bills C-34 and C-36. The second one matters more for most businesses. See our note on it.