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Canada Plans $1 Billion for AI-Driven Digital Overhaul of Public Service
Canada plans $1 billion for AI-driven overhaul of its public service, with a new Digital Transformation Canada body.
Key points
- The budget includes $1 billion over five years to establish a Government Transformation Fund for IT projects.
- GCtranslate has translated over 400 million words since June 2025 and is accessible to more than 310,000 public servants.
- The government expects to save $100 million a year through early retirements, reflected in department budgets from next year.
Why it matters. The planned Digital Transformation Canada Act would set a legislative framework for delivering digital and IT services across the federal government, which could change how public services are run.
Ottawa will commit $1 billion over five years to a Government Transformation Fund for information technology projects, according to Budget 2026. Digital Transformation Canada will bring together Shared Services Canada and the Canadian Digital Service to lead AI adoption, the budget said. The government says it is on track to cut the public service by 10 per cent by 2029, with 332,000 federal public servants as of August 2026, down from 368,000 at the 2023-24 peak.
Latest updates
Canada Plans $1 Billion for AI-Driven Digital Overhaul of Public Service
The federal government plans to spend $1 billion to adopt artificial intelligence technology in departments and services, according to Budget 2026. The spending will fund Digital Transformation Canada, a new organization that will lead the adoption of AI and other emerging technologies across the public service. The government said it remains on track to cut the size of the public service by 10 per cent by 2029. The budget update was reported by CTV News. Further details on how the funds will be allocated were not included in the report.