The Canadian government has announced a CA$2.8 million investment aimed at boosting artificial intelligence (AI) adoption, digital literacy, and economic development across northern communities.
The funding, unveiled on February 6 by the Canadian Northern Economic Development Agency (CanNor), will support four projects spanning Nunavut, the Northwest Territories, and Yukon. The initiative forms part of broader federal efforts to help small and remote communities adapt to emerging technologies and strengthen their participation in the digital economy.
Minister of Northern and Arctic Affairs, Rebecca Chartrand, said the investment reflects the government’s commitment to equipping businesses and communities with the skills needed to navigate a rapidly evolving digital landscape.
She noted that the programme prioritises practical AI adoption, training, and technology deployment rather than research alone, helping northern entrepreneurs explore new technologies safely while improving competitiveness.
The largest portion up to CA$2.3 million has been allocated to Prosper NWT to establish an AI-driven entrepreneurship and business support centre. The centre will provide AI-enabled tools, training opportunities, and data analytics support to help businesses improve operations and decision-making.
Additional projects include:
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The Nunavut Economic Developers Association’s plan to develop AI and machine-learning tools tailored to economic planning and grant development for Inuit communities.
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The Inuvik Tech Society’s initiative to create a mobile digital training lab aimed at enhancing AI awareness and online skills in remote areas.
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Whitehorse-based DeltaVue Inc.’s project to build software that standardises environmental sensor data for easier AI-based analysis.
Minister of Artificial Intelligence and Digital Innovation, Evan Solomon, said the investments align with Canada’s broader national AI strategy focused on inclusive access and digital readiness across all regions.
The funding complements Canada’s expanding AI agenda, which has shifted in recent years from research leadership toward practical adoption, infrastructure development, and workforce readiness.
Budget 2024, for example, allocated CA$2.4 billion to AI-related initiatives covering computing capacity, business adoption, workforce transition, and AI safety.
Government officials say the new funding aims to bridge the gap in AI adoption between major technology hubs and remote communities, where infrastructure limitations and skills shortages have slowed uptake.
The supported projects are expected to run between one and three years, with an emphasis on local engagement, capacity building, and economic relevance.
Analysts note that the initiative could serve as a test case for whether national AI investments can deliver inclusive economic growth beyond traditional tech centres while helping small communities transition from awareness to practical AI use.
