---
title: "Make Canadian Government Services AI-First"
description: "AI is the key technology to unlock Canadian prosperity. We can wait and be forced to buy this technology from other global providers or become a world-leading creator of AI solutions ourselves."
image: "https://yorkfactory.buildcanada.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTI4NiwicHVyIjoiYmxvYl9pZCJ9fQ==--7a061ba59a0a959a70739f04c4ddcb1404d1229b/67ace5fce6150440f9873cc8_Frame-40.png"
author: "Benjamin Alarie"
published: "2025-02-12T20:50:00.000Z"
canonical: "https://www.buildcanada.com/memos/ai-first-government-services"
---

# Make Canadian Government Services AI-First

## Key Messages

1. AI is the key technology to unlock Canadian prosperity. We can wait and be forced to buy this technology from other global providers or become a world-leading creator of AI solutions ourselves.
2. Adopting AI will transform our government into the most modern, effective, and efficient in the world. By empowering the public service with these tools we can replace external consultants to improve service levels and save billions of dollars.
3. We will make this transition by procuring from Canadian AI companies. Investing in Canadian AI success will produce global champions, strengthen national security, and create jobs at home.

## The Goal

Canada should become an AI-first nation. By aggressively integrating AI, the government can supercharge service delivery and become a leader that helps build the Canadian AI ecosystem driving increased productivity and innovation across the Canadian economy. Our targets:

- Cut Government Processing Times by 50% across key services including immigration, benefit delivery, and tax processing.
- Use new AI capabilities to dramatically reduce the use of external consultants to fund our investments in AI and create $10 billion in annual savings.

‍

## Summary 

Canadian scientists such as Geoffrey Hinton, who recently won the Nobel Prize in Physics for his achievements in AI, pioneered the AI revolution. But today, we are failing to adopt our own innovations and risk having the best AI talent leave Canada. 

Our government is a prime example of the ways we have dragged our heels on this technology. Slow and complex procurement processes, reliance on foreign technology, and inefficient spend on external consultancies is holding us back. To regain our lead, we must overhaul how Canada adopts AI. By creating AI-first government services we will improve service delivery, empower the civil service, save money, increase economic productivity, and build a culture of innovation.

Right now, Canadians wait weeks or months for services that existing AI tools could handle in seconds. AI could: 

- Process tax returns at the Canada Revenue Agency (CRA) to identify errors and reduce fraud while eliminating unnecessary audits and delays. 
- Automatically screen Immigration applications at Immigration, Refugees and Citizenship Canada (IRCC), to cut processing times and allow qualified applicants to contribute to Canada’s economy sooner. 
- Manage employment insurance applications faster, ensuring Canadians in need get support without frustrating bureaucratic wait times. 

The list of potential areas where AI adoption could empower the public service is endless\*.

By transforming our government to become AI-first we will not only improve service levels but also ensure Canadian AI companies thrive. Canada already develops world-leading AI, but too often, foreign companies win contracts while homegrown innovators struggle to cut through a risk-averse bureaucracy. By prioritizing Canadian AI firms in procurement, we will spark a domestic industry of firms who are specialized in AI in government. These products will be in demand by governments everywhere, creating jobs, increasing innovation, and keeping AI talent and technology in Canada. 

Just as China and the U.S. heavily invest in their domestic AI ecosystems, Canada must do the same to stay globally competitive. Canada led the world with CANDU nuclear technology and successfully sold it internationally – we now have the opportunity to do the same with AI in government. 

To fully seize this opportunity this transformation must start immediately. We can rapidly reform procurement, build world class AI capabilities in-house, and have pilot projects launched in every major agency with full implementation in 6 months.

‍

## Current Problem 

Canada is losing its AI leadership due to slow adoption and bureaucratic inertia.

- **AI represents the greatest opportunity to support human flourishing in generations but today Canada is lagging behind.** As Sundar Pichai put it “AI is one of the most profound things we’re working on as humanity. It’s more profound than fire or electricity,”. But Canada is investing half as much as countries like the US, Singapore, and Estonia are spending, proportional to GDP. If we do not catch up, Canada will be left behind in the last century.

[Proportional National Investment in AI](https://datawrapper.dwcdn.net/UZQzk/4/)

‍

- **Canada’s productivity is lagging.** Our worker productivity is 30% lower than the U.S.[1](https://thoughtleadership.rbc.com/wp-content/uploads/Canadas-Growth-Challenge-Report-EN2024.pdf), largely because Canadian businesses and government agencies have been slower to invest and adopt advanced technology. We consistently do the equivalent of running a business with typewriters while competitors use high-speed computers.

- **Consultant spending is draining resources.** The government spends $15.7 billion annually on professional consultants[2](https://thehub.ca/2024/06/06/canadas-reliance-on-it-specialists-has-led-to-a-shadow-bureaucracy-of-private-consultants-within-the-federal-government/)—many of whom provide outdated or manual solutions to sort data, manage systems, and prepare reports by hand. This is like using candles when we have electric light available. Since 2017, the government has stated a desire to grow the Canadian AI ecosystem but they have invested less than $5 billion in total[3](https://www.pm.gc.ca/en/news/news-releases/2024/04/07/securing-canadas-ai) with only a tiny fraction used for government services. We can rapidly increase investment in the ecosystem _and_ decrease costs by using Canadian-made AI tools rather than outsourcing work to complacent contractors.

- **Government procurement is a bottleneck for adopting Canadian AI.** Current procurement processes are characterized by excessive bureaucracy, risk aversion, and a bias towards large, established firms. This creates a significant barrier to entry for Canadian AI startups and SMEs offering cutting-edge solutions.

- **AI is a geostrategic imperative.** The race to lead in artificial intelligence is not just about economic opportunity; it is a defining factor in global power competition. As Russian President Vladimir Putin warned, “Whoever becomes the leader in \[Artificial Intelligence] will become the ruler of the world.” The United States, China, and the European Union are aggressively funding AI research, defense applications, and domestic ecosystems to maintain their geopolitical standing. AI is essential to defensive preparedness across intelligence, border security, and cyber. It is also an opportunity to raise our defense spending to achieve our NATO targets. If we do not invest in our own AI ecosystem, we risk becoming technologically dependent on foreign powers. If we do, we can meet our obligations to our allies and maintain our sovereignty and strength.

[Federal Spending on "Professional and Special Services"](https://datawrapper.dwcdn.net/GcJ5y/2/)

‍

## Real-World Solutions 

Estonia proves that government leadership with advanced technology can transform a country. After seperating from the former Soviet Union, the country made a society-wide commitment to digital transformation, driven by government leadership with a focus on citizen-centric design. Today 100% of government services are available online 24/7. These systems save Estonians over 1,400 years of working time every year[4](https://www.sps.nyu.edu/homepage/metaverse/metaverse-blog/the-estonian-miracle-e-estonia-and-the-future-of-digital-infrastructure.html). Just the introduction of e-signature system alone amounts to the equivalent of saving \~2% of GDP[5](https://www.apo-tokyo.org/wp-content/uploads/2024/09/5-1_The-Art-of-Digitalization_PUB.pdf). 

Today, China and the U.S. are taking leadership positions investing billions in AI-driven governance and defense and using automation to enhance economic growth. Meanwhile, smaller nations like Singapore have agile procurement models that allow government agencies to rapidly adopt AI solutions by accelerating approval timelines, enabling faster implementation to improve public services. If our government takes a leadership position similar to how Estonia did with digitization we can join the nations at the forefront of adopting this new technology. 

‍

## What Needs To Be Done

To establish Canada as an AI-first nation, implement a targeted strategy that ensures AI is integrated across federal agencies, top global AI talent is embedded in the federal government, procurement processes are reformed, and Canadian AI companies are prioritized.

- **New Mandates** : Ensure every federal agency adopts an AI filter. At every stage they should ask the question how can the speed and quality of a function be improved by AI. This will include automating processes in taxation, immigration, employment and social development as well as  modernizing back-office operations like call centres. 
- **Legislative Changes** : Update federal procurement laws to fast-track AI adoption, removing outdated regulations that delay implementation and discourage innovation while creating a new process for essential novel technologies that will allow the government to take decisions in a way that is fast and effective. 
- **Buy Canadian** : To build up the Canadian AI ecosystem ensure that we prioritize AI procurement from Canadian-owned and operated companies, with foreign solutions only considered if no viable Canadian alternative exists.
- **New Government Positions** : Eliminate wasteful external consultancy spending and redirect funds toward hiring a CTO for each major department. This new role will have a mandate to track process efficiency quantitatively and use AI to improve those metrics. The largest agencies will also hire AI expert teams to drive rapid development and adoption of AI solutions. These roles will be staffed with world-class data scientists, software architects and AI engineers selected with the highest performance and hiring standards and compensated at globally competitive levels. 
- **Measuring Success** : Track AI-driven improvements using specific metrics, aiming to create 50% faster response times across all major process driven services like immigration, benefit delivery, and taxation services. Target AI-driven cost savings of at least $10 billion annually through reduced reliance on external consultants.
- **Accountability and Oversight** : Implement quarterly AI progress reports to Parliament and create a public AI performance dashboard looking at both the speed and accuracy of AI enabled processes to ensure transparency and track AI deployment across government services.
- **Rapid Implementation Timeline** : Pilot projects launched in every major agency with full implementation in 6 months. Based on the success of these first pilots we can move on to a full-scale government-wide deployment.

‍

## \*AI Applications

AI is a true general purpose technology and the potential applications are near endless. To test integration and rapidly observe improvements we will lead with proven AI applications that offer high-impact, low-risk deployments. 

For example, we can use AI for tax research and compliance to reduce unnecessary audits and lower dispute rates. In this deployment AI should augment, not replace, human decision-making, particularly in tax disputes. We could roll out AI in a determined and safe manner with a three phase approach:

- Phase 1: Internal CRA research support
- Phase 2: Internal audit workflow enhancement
- Phase 3: External taxpayer guidance tools

Beyond these initial pilots we must reward departments for widespread adoption. To truly become an AI-First country we will need to have a habit of deploying these technologies on a regular basis to constantly improve the quality of government services. To give just some examples of what this could look like, AI can be used to: 

- Streamline immigration application processing
- Modernize call centres for federal agencies to reduce wait times 
- Improve benefit delivery for programs like Employment Insurance (EI), Canada Pension Plan (CPP), Old Age Security (OAS), and child benefits 
- Enhance translation services for official bilingual communication across government 
- Conduct media monitoring for public policy and crisis response 
- Transcribe and analyze proceedings in the House of Commons and Senate 
- Process Access to Information requests more efficiently 
- Enhance surveillance and reconnaissance for national security through AI-powered image and signal analysis
- Automate threat detection and response in military cybersecurity operations
- Optimize procurement and contract management to reduce costs 
- Develop autonomous systems for search and rescue missions in challenging environments
- Strengthen cybersecurity threat detection and response for federal IT systems 
- Improve emergency response coordination through AI-driven risk assessments, optimize transportation and infrastructure planning for federal projects 
- Optimize logistics and supply chain management for the Canadian Armed Forces (CAF)
- Automate the review and approval of grants and funding applications 
- Streamline regulatory compliance checks for industries under federal jurisdiction 
- Enhance border security and customs processing at the Canada Border Services Agency (CBSA)
- And much more…

‍

## What This Means for the Future

An AI-First Canada will be a safer, stronger, more agile country; prepared for a changing world and better able to defend ourselves. By making these changes:

- Canada will become a **global leader in AI-driven governance** , where Canadians will be able to get answers fast, have their tax returns done in days, and new Canadians will get instant answers about the immigration process. These services will set a model for other nations.
- Our government will save over **$10 billion annually** through reducing external consulting fees and improving service efficiency. This money can be used to reduce our deficit and provide more services to Canadians. 
- **We will accelerate an ecosystem of Canadian AI innovation and commercialization** increasing productivity and creating jobs throughout the country.

‍

## Common Questions

- **How will the government ensure AI decisions are transparent, ethical, and fair?** AI integration comes with real risks around algorithmic bias, privacy concerns, and the unintended consequences of automation. To address this, the new AI teams will be staffed by industry leaders including those recognised as experts on precisely these issues. They will oversee deployment, ensure transparency, and implement clear human oversight protocols to solve these problems practically and pragmatically as we build new systems.
- **Won’t AI lead to job losses?** AI will reduce the reliance on external contractors and help to provide more efficient services. Research shows that virtually no jobs can be fully automated and AI supplements existing jobs rather than displacing them. By empowering the civil service we will make government workers more productive. By investing in the Canadian AI ecosystem we will create new high-value AI development jobs and ensure a stronger economy overall with more jobs for Canadians.
- **Is AI reliable for government services?** AI errors will be managed with the same standards as human decision-making, with oversight mechanisms in place. Any new AI process must have the same or lower error rates otherwise it will not be deployed.
- **Is a 6-month timeline for full AI deployment realistic?** While ambitious, this timeline is designed to drive action. We will begin with pilot projects in select departments, gradually scaling AI integration based on lessons learned. Civil servants will receive comprehensive training, and technical contingency plans will be in place to address challenges.
- **How will the government protect against cybersecurity risks in AI systems?** AI-driven systems require strong security. The government will invest in robust cybersecurity infrastructure, continuous monitoring, and regular vulnerability assessments to safeguard sensitive data and prevent AI-driven cyber threats.
- **What evidence supports the projected $10 billion in annual savings?** AI can drastically reduce consultant spending and improve efficiency. These savings will come from the $15.7 billion that is currently spent on external professional services each year

‍

## Conclusion

We can secure Canada’s position as the world’s first AI-first government. This will supercharge government services and save us money while positioning our AI industry to create world-leading solutions. We have done this before with CANDU nuclear technology and we can do it again. We led the world in the initial development of AI technologies. Let’s reclaim our position as a leader to help secure prosperity for our country for decades to come.

‍

## Appendix

We need to modernize our laws to make Canada’s federal government “AI First.” This means changing existing procurement and accountability rules, protecting privacy, and creating a new AI Transformation Office and CTO roles. By updating these laws, we can deploy AI swiftly, effectively, and ethically.

## **1. Department of Public Works and Government Services Act**

We will update the Department of Public Works and Government Services Act to speed up AI purchasing. The goal is to remove red tape that slows contracts for modern technology and make sure Canadian AI companies can win government business quickly.

### **1.1 Current Law and Sections Impacted**

- **Department of Public Works and Government Services Act (S.C. 1996, c. 16)**

  - Relevant Sections:

    - **Section 6(1)(a)**: The Minister’s authority to procure goods and services.
    - **Section 7** : Ministerial responsibility for acquisition programs.

### **1.2 Required Changes**

- **Section 6(1)(a)**: Add an explicit reference to “emerging and strategic technologies, including artificial intelligence” to clarify that the Minister must consider specialized AI procurement pathways.
- **Section 7** : Insert language mandating the Minister to “prioritize domestic AI technology solutions where available and ensure streamlined AI procurement procedures.”

### **1.3 Exact Terms to Delete/Modify**

1. **Section 6(1)(a)**

- **Existing Text (excerpt):** “…acquire goods and services, and dispose of them, on behalf of departments…”
- **Proposed Amendment:**\
  “acquire goods and services, _including strategic or emerging technology solutions such as Artificial Intelligence,_ and dispose of them, on behalf of departments…”

2. **Section 7**

- **New Subsection 7(3):**\
  “The Minister shall establish an accelerated procurement process for innovative and emerging technologies, with an emphasis on Canadian-owned and operated AI solutions, ensuring that regulatory and administrative requirements do not unreasonably delay acquisitions that meet national economic and security interests.”

### **1.4 Rationale**

These updates authorize Public Works and Government Services Canada (PWGSC) to create special procurement rules for AI and to prioritize Canadian AI companies.

## **2. Government Contracts Regulations**

We will change the Government Contracts Regulations to let departments quickly buy AI solutions from Canadian companies. This removes barriers that slow contract approvals and helps grow our domestic AI sector.

### **2.1 Current Regulations and Sections Impacted**

- **Government Contracts Regulations (SOR/87-402)**

  - Relevant Sections:

    - **Section 6** (Methods of procurement)
    - **Section 10** (Exceptions and limited tendering)

### **2.2 Required Changes**

- **Section 6** : Add an accelerated “AI Procurement Stream” to the listed methods of procurement.
- **Section 10** : Introduce a new exception allowing limited (or single) tendering for Canadian AI firms when no comparable domestic competitors exist and the technology is essential to government operations.

### **2.3 Exact Terms to Delete/Modify**

1. **Section 6**

- **Existing Text (excerpt):** “Subject to sections 10 to 16, contracts shall be awarded…by either open, selective, or limited tendering.”
- **Proposed Addition:**\
  “(d) An ‘AI Procurement Stream’ may be used for the acquisition of strategic or emerging AI technologies, enabling faster evaluation and contracting.”

2. **Section 10**

- **New Subsection 10(2)(e):**\
  “where the contract is for strategic AI services or goods supplied by a Canadian-owned and operated entity, and such procurement is required to maintain a domestic capability or meet a national security or public interest objective.”

### **2.4 Rationale**

These regulatory changes create a fast lane for government AI contracts. They also give clear legal authority to limit tendering to Canadian AI solutions.

## **3. Financial Administration Act**

We will amend the Financial Administration Act so departments can use money saved by cutting external consultants to hire AI teams and buy Canadian AI tools. This ensures that efficiency gains directly fund new AI initiatives.

### **3.1 Current Law and Sections Impacted**

- **Financial Administration Act (R.S.C., 1985, c. F-11)**

  - Relevant Sections:

    - **Section 7** : Governor in Council regulations on financial management.
    - **Section 32** : Commitments and control of funds.

### **3.2 Required Changes**

- **Section 7** : Add authority to create regulations that earmark savings from consultant contracts for internal AI development.
- **Section 32** : Require that each department’s annual estimates include a line item reporting consultant cost reductions and reallocation to AI projects.

### **3.3 Exact Terms to Delete/Modify**

1. **Section 7**

- **New Subsection 7(1.1):**\
  “The Governor in Council may make regulations requiring that any cost savings realized from reductions in external consultancy spending be allocated toward technology modernization, including artificial intelligence initiatives, within each department.”

2. **Section 32**

- **New Paragraph 32(4)(c):**\
  “a statement of planned expenditures on artificial intelligence programs and initiatives funded through reductions in external professional services.”

### **3.4 Rationale**

By reallocating funds from consultant budgets directly into AI projects, we ensure the policy’s cost-neutral approach and keep consistent oversight under the Financial Administration Act.

## **4. Federal Accountability Act**

We will update the Federal Accountability Act to require that each department’s AI progress be reported publicly every quarter. This keeps politicians and citizens informed about AI projects, spending, and results.

### **4.1 Current Law and Sections Impacted**

- **Federal Accountability Act (S.C. 2006, c. 9)**

  - Relevant Provisions:

    - Accountability and oversight measures generally (various sections).

### **4.2 Required Changes**

- Insert a new part mandating quarterly AI progress reports to Parliament and requiring that these reports be publicly accessible.

### **4.3 Exact Terms to Delete/Modify**

1. **Insert New Part – “Part 4.1: AI Accountability Measures”**\
   “(1) Every department or agency listed under Schedule I of the Financial Administration Act shall submit to Parliament, on a quarterly basis, a report on any ongoing or planned AI initiatives, including metrics such as cost, timeline, efficiency gains, and accuracy improvements.\
   (2) These reports shall be made available on a centralized public AI performance dashboard administered by the Treasury Board Secretariat.”

### **4.4 Rationale**

This ensures consistent oversight for AI initiatives across all government bodies and provides transparency to Canadians.

## **5. Privacy Act**

We will strengthen privacy rules to ensure data used by AI is protected. We will add clear guidelines about consent, transparency, and data handling so Canadians know how AI uses personal information.

### **5.1 Current Law and Sections Impacted**

- **Privacy Act (R.S.C., 1985, c. P-21)**

  - Relevant Sections:

    - **Section 4** : Collection of personal information.
    - **Section 6** : Retention of personal information.
    - **Section 8** : Disclosure of personal information.

### **5.2 Required Changes**

- Add requirements for “Algorithmic Transparency” and “Responsible AI Data Use” in the collection, use, and disclosure of personal information by federal agencies employing AI.

### **5.3 Exact Terms to Delete/Modify**

1. **Section 4 – New Subsection 4(2.1):**\
   “Any collection of personal information for the purpose of automated decision-making or AI-driven processes shall include a plain-language notice explaining how the data will be used, the potential impacts of automated processing, and contact details for inquiries.”
2. **Section 8 – New Paragraph 8(3)(c):**\
   “A federal institution using AI-based decision-making shall maintain a record of the algorithms or models applied, including documentation of measures taken to mitigate bias or error, which shall be available for audit by the Privacy Commissioner.”

### **5.4 Rationale**

These provisions uphold Canadians’ privacy rights while allowing the government to leverage AI. They also establish the importance of transparent, audited AI usage.

## **6. Immigration and Refugee Protection Act**

We will add rules that let Immigration, Refugees and Citizenship Canada (IRCC) use AI to speed up applications, but require human oversight to avoid unfairness. New language ensures applicants understand how AI affects their files.

### **6.1 Current Law and Sections Impacted**

- **Immigration and Refugee Protection Act (S.C. 2001, c. 27)**

  - Relevant Sections:

    - **Section 11** : Applications before entering Canada.
    - **Section 13** : Issuance of visas and other documents.

### **6.2 Required Changes**

- Allow IRCC to use AI-based triage systems for routine application screening, provided final decisions or refusal grounds are reviewed by a human officer.

### **6.3 Exact Terms to Delete/Modify**

1. **Section 11 – New Subsection 11(1.1):**\
   “The use of artificial intelligence-based screening tools to evaluate applications is permitted, provided that all negative determinations are subject to review and approval by a human officer before a final decision is issued.”
2. **Section 13 – New Subsection 13(3):**\
   “All applicants shall be notified, in plain language, if AI was used in processing their application and informed of their right to request a human review.”

### **6.4 Rationale**

These changes expedite immigration processing while safeguarding fairness through mandatory human review of AI decisions.

## **7. Department of Employment and Social Development Act**

We will clarify that Employment and Social Development Canada (ESDC) can use AI to quickly process benefit applications, while ensuring human oversight for any automated decisions that affect individual rights or payments.

### **7.1 Current Law and Sections Impacted**

- **Department of Employment and Social Development Act (S.C. 2005, c. 34)**

  - Relevant Sections:

    - **Section 6** : Powers, duties, and functions of the Minister.
    - **Section 39** : Service delivery.

### **7.2 Required Changes**

- Add explicit language allowing ESDC to use AI-driven workflows for processing claims (e.g., EI, CPP, OAS), with clear guidelines for appeals or reconsiderations by humans.

### **7.3 Exact Terms to Delete/Modify**

1. **Section 6 – New Subsection 6(5):**\
   “The Minister may implement automated or AI-based systems for service delivery, provided claimants have clear, accessible avenues for review or appeal of any automated determinations affecting eligibility or payments.”
2. **Section 39 – New Paragraph 39(2)(d):**\
   “Where AI systems are used in the delivery of services, the department shall document accuracy and service improvements, reporting these metrics publicly on a quarterly basis.”

### **7.4 Rationale**

This ensures ESDC can employ AI to speed up benefit decisions, guaranteeing transparency and fairness.

## **8. Canada Revenue Agency Act**

We will authorize the CRA to use AI for tax filing assistance and auditing. AI can detect errors quickly and reduce fraud, but we require that taxpayer rights remain protected through human oversight in final decisions.

### **8.1 Current Law and Sections Impacted**

- **Canada Revenue Agency Act (S.C. 1999, c. 17)**

  - Relevant Sections:

    - **Section 5** : Mandate of the Agency.
    - **Section 60** : Powers to make regulations.

### **8.2 Required Changes**

- Permit AI-enabled tax return screening and risk assessment while preserving rights to a human review for disputed findings.

### **8.3 Exact Terms to Delete/Modify**

1. **Section 5 – New Subsection 5(2.1):**\
   “The Agency may employ artificial intelligence for the analysis of returns, detection of fraud, or identification of errors, ensuring that any significant determinations adverse to a taxpayer require review and confirmation by an authorized official.”
2. **Section 60 – New Paragraph 60(1)(e):**\
   “Regulations establishing safeguards for AI-based assessments, including transparency, appeal procedures, and minimum accuracy thresholds to be met before any AI system is deployed.”

### **8.4 Rationale**

These amendments reduce tax return processing times and strengthen fraud detection while ensuring taxpayers have recourse to human review.

## **9. Official Languages Act (Optional Clarification)**

We will clarify that government AI tools used in communications must respect official language requirements. Automated translations must meet acceptable standards in both English and French.

### **9.1 Current Law and Sections Impacted**

- **Official Languages Act (R.S.C., 1985, c. 31 (4th Supp.))**

  - Relevant Sections:

    - **Section 2** : Purpose.
    - **Section 22** : Communications with the public.

### **9.2 Required Changes**

- Clarify that AI-based translation meets or exceeds the standard required for official communications.

### **9.3 Exact Terms to Delete/Modify**

1. **Section 22 – New Subsection 22(3.1):**\
   “Where an institution uses automated translation or AI-based communication tools, the institution shall ensure the quality of service in both official languages is substantially equivalent to that of human translation.”

### **9.4 Rationale**

This ensures AI-empowered communications do not undermine Canada’s official bilingualism.

## **10. Proposed New Legislation: “AI-First Government Implementation Act”**

We will introduce a new law that sets overall rules for AI adoption in government. It creates the CTO roles, funds AI teams, and requires all departments to cut processing times by 50% while respecting oversight and transparency.

### **10.1 Purpose**

To establish a government-wide framework for:

1. Creating Chief Technology Officers (CTOs) in each major department.
2. Directing pilot programs.
3. Setting performance metrics, including the 50% reduction in major processing times.
4. Enforcing the prioritization of Canadian AI solutions.
5. Enabling national security and competitiveness by developing AI in-house.

### **10.2 Key Sections**

1. **Section 1: Short Title**

- “This Act may be cited as the _AI-First Government Implementation Act._”

2. **Section 2: Definitions**

- “AI” means “technologies involving machine learning, deep learning, natural language processing, or other methods of automated decision-making.”
- “CTO” means “Chief Technology Officer designated under this Act.”

3. **Section 3: Application**

- “This Act applies to all departments and agencies listed in Schedule I of the Financial Administration Act.”

4. **Section 4: Creation of CTO Offices**

- “All major departments shall create a CTO position responsible for overseeing AI integration, setting technology standards, and reporting quarterly on efficiency metrics to Parliament.”

5. **Section 5: Canadian AI Procurement Priority**

- “Departments shall, where feasible, procure AI goods and services from Canadian-owned and operated firms. Foreign solutions may only be considered if no viable Canadian alternative exists.”

6. **Section 6: Performance Targets**

- “All departments shall strive to reduce average processing times for major service deliveries by at least 50% within two years of the enactment of this Act.”

7. **Section 7: Transparency & Ethical Oversight**

- “Any AI system used for final decision-making that affects individual rights or entitlements shall include meaningful human oversight and a transparent review process.”

8. **Section 8: Implementation Timeline**

- “Pilot projects shall launch within six months of this Act coming into force, with full implementation of AI systems in major departments by the close of the second fiscal year following enactment.”

9. **Section 9: Regulation-Making Authority**

- “The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including the establishment of standards for AI fairness, transparency, and performance measurement.”

## **11. Additional Tools (Orders in Council and Policy Directives)**

**Plain-Language Summary (under 50 words):**\
We will use quick executive instruments like Orders in Council to speed up AI pilot programs and to set mandatory guidelines across all departments without waiting for full legislative processes.

### **11.1 Orders in Council (OICs)**

1. **Interim AI Procurement Guidelines**

- An OIC can immediately set out simplified bidding and proposal processes for AI contracts, pending the longer legislative amendment process.

2. **Mandatory Pilot Launch**

- An OIC can require each major department to begin at least one AI pilot program within six months.

### **11.2 Treasury Board Policy Directives**

1. **Policy on AI-Driven Service Delivery**

- Sets minimum performance standards, data protection guidelines, and transparency requirements.

2. **Policy on Consultant Spending Reallocation**

- Ensures that each department tracks external consultant spending cuts and reallocates those funds to in-house AI hiring or AI solution procurement.

## **12. Full List of Agencies for AI Pilots**

We will run pilot AI programs in these major departments and agencies first. These are some of the largest service areas where AI can deliver quick wins for Canadians.

1. **Canada Revenue Agency (CRA)** – Tax processing and compliance.
2. **Immigration, Refugees and Citizenship Canada (IRCC)** – Application triage and visa processing.
3. **Employment and Social Development Canada (ESDC)** – Benefit delivery (EI, CPP, OAS).
4. **Department of National Defence (DND)** – Cybersecurity, logistics, and threat analysis.
5. **Public Services and Procurement Canada (PSPC)** – Procurement optimization and contract management.
6. **Canada Border Services Agency (CBSA)** – Automated screening and risk analysis at border points.
7. **Health Canada** – Accelerated approvals for certain processes, improved data analytics.
8. **Transport Canada** – AI for infrastructure planning, safety inspections, and traffic management.
9. **Fisheries and Oceans Canada** – Resource management and remote sensing.
10. **Environment and Climate Change Canada** – Environmental monitoring and climate modeling.
11. **Innovation, Science and Economic Development Canada (ISED)** – Oversight of Canadian AI growth; AI-based business services.
12. **Treasury Board Secretariat (TBS)** – Central coordinating body for AI spending, oversight, and dashboard reporting.

_(Note: Other departments and agencies not listed here will be encouraged to follow these pilots’ best practices and begin their own AI initiatives within the 6-month rollout.)_

By making these targeted legislative and regulatory changes—and introducing the new _AI-First Government Implementation Act_—Canada can fast-track AI adoption across the public sector. The plan prioritizes Canadian-owned AI solutions, establishes clear privacy and accountability measures, and redirects consultant spending to build in-house AI expertise. Through Orders in Council and Treasury Board directives, we can quickly launch pilot programs in major departments. This will accelerate service delivery times, improve efficiency, and solidify Canada’s position as a global leader in AI-driven governance.

‍

## Supporters

[Stewart Lyons](https://www.linkedin.com/in/stewartlyons/), [Daniel Debow](https://www.linkedin.com/in/ddebow/), [Daniel Eberhard](https://www.linkedin.com/in/danieleberhard/), [Michael Litt](https://www.linkedin.com/in/michaellitt/), [Mark McQueen](https://www.linkedin.com/in/mark-r-mcqueen/), [Roger Kirkness](https://www.linkedin.com/in/roger-kirkness/), [Brice Scheschuk](https://www.linkedin.com/in/brice-scheschuk-cpa-ca-095721a/), [Som Seif](https://www.linkedin.com/in/som-seif-29bb66/), [Mike Murchison](https://www.linkedin.com/in/mikemurchison/)

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