Budget 2025: Leaders say AI and infrastructure key to growth
Among the key highlights of the upcoming Budget 2025 is a commitment of approximately CAD $2.4 billion to bolster AI development, with allocations targeting research capacity and the foundational requirements to scale technological innovation across the broader economy. Policymakers have identified applied technology and digital productivity as central priorities for shaping Canada's future economic position and reducing reliance on imported solutions.
Workforce and housing implications
The intersection of technology and housing has also become a prominent theme, particularly in light of pressing national priorities regarding housing affordability and skilled labour mobility. With CAD $13 billion earmarked for constructing 4,000 homes on public land, stakeholders in the construction and infrastructure sectors are focusing on how AI-powered productivity tools can help deliver projects efficiently and support employment in underserved areas.
Calvin Benchimol, Chief Executive Officer of Crewscope, indicated that platforms supporting jobsite productivity, utilising AI for planning, forecasting, and performance tracking, are now fundamental in tackling large-scale housing missions.
"As Carney's first budget will prioritise housing affordability, skilled labour mobility and fast infrastructure delivery, AI and productivity technology accelerate execution by automating lookahead planning, enabling early trade coordination, tracking forecast accuracy for accountability, and reinforcing performance recognition to identify top performers and maintain focus on tight delivery milestones," said Benchimol. "With $13 billion committed to building 4,000 homes on public land, Canada needs faster, smarter ways to mobilise skilled trades, especially in remote and underserved regions."
Structural challenges and global competition
While federal funding commitments were recognised as an important step, concerns were raised about Canada's ability to keep pace with international competitors, particularly the United States.
Reece Tomlinson, Chief Executive Officer of RWT Capital, a Western Canada-based boutique investment banking firm, emphasised the need for investments in critical infrastructure.
"Canada is at risk of becoming a backseat player in the global AI race. While the U.S. aggressively supports data center growth, rare earth mineral development, and innovation funding, Canada has yet to match that pace or share in the sense of urgency to become a leader in the AI economy," said Tomlinson. "I'd like to see this budget invest in shovel-ready projects, especially in critical minerals, modernise zoning for data infrastructure, and expand capital access for scaling tech companies. Without this, we risk losing both talent and investment to more competitive ecosystems. This budget needs to show that Canada is serious about competing in AI, not just consuming it."
AI investment seen as strategic
Aleksandra Phelan, Founder of Phelan Strategic Consulting, emphasised that, while research and funding have laid groundwork over recent years, the real test will be whether Canada can convert momentum into widespread adoption and real-world productivity gains.
"The new federal budget is expected to highlight growth in Canada's AI and technology sectors - a move that positions the country to compete more assertively on the global stage," said Phelan. "The next step is turning that momentum into large-scale implementation. Supporting companies that deploy AI across manufacturing, logistics, and infrastructure can turn innovation into measurable productivity. This budget is not only about fiscal priorities - it's about proving that Canada can lead in applied technology and define its role in the next wave of global growth."
