Ottawa puts up $50M in federal budget to hedge against job-stealing AI

Worried artificial intelligence is coming for your job? So is the federal government — enough, at least, to set aside $50 million for skills retraining for workers.

One of the centrepiece promises in the federal budget released Tuesday was $2.3 billion in investments aiming to boost adoption of the technology and the artificial intelligence industry in Canada.

But tucked alongside that was a promise to invest $50 million over four years “to support workers who may be impacted by AI.” Workers in “potentially disrupted sectors and communities” will receive new skills training through the Sectoral Workforce Solutions Program.

“There is a significant transformation of the economy and society on the horizon around artificial intelligence,” said Joel

Blit, an associate professor of economics at the University of Waterloo.

Some jobs will be lost, others will be created, “but there’s going to be a transition period that could be somewhat chaotic.”

While jokes about robots coming to take jobs predate the emergence of generative AI systems in late 2022, the widespread availability of systems like ChatGPT made those fears real for many, even as workers across industries began integrating the technology into their workday.

In June 2023, a briefing note for Finance Minister Chrystia Freeland warned the impact of generative AI “will be felt across all industries and around 40 per cent of all working hours could be impacted.”

“Banking, insurance and energy appear to have higher potential for automation compared to other sectors,” says the note, obtained through access to information and citing information from Accenture.

“This could have substantial impacts on jobs and skills requirements.”

The budget only singles out “creative industries” as an affected sector that will be covered by the program. In February, the Canadian TV, film, and music industries asked MPs for protection against AI, saying the tech threatens their livelihood and reputations.

Finance Canada did not respond to questions asking what other sectors or types of jobs would be covered under the program.

“The creative industries was used as an illustrative example, and not intended as an exclusion of other affected areas,” deputy Finance spokesperson Caroline Thériault said in a statement.