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Federal government spent more than $800M on AI contracts, licensing over 3 years
The total includes a $350 million Dayforce contract and a $240 million Cohere investment, with several agencies saying they do not track all AI spending centrally.
On Wednesday, federal records revealed Ottawa has spent roughly $831 million on artificial intelligence technology since 2023, including hundreds of entries ranging from small ChatGPT subscriptions to multimillion-dollar contracts.
Public Services and Procurement Canada and Innovation Canada lead departmental spending, driven by a $350 million Dayforce contract to replace the troubled Phoenix pay system and a $240 million investment in Cohere.
Veterans Affairs Canada allocated $25.1 million for AI processing medical records, National Defence spent $6.3 million on mapping software from Ecopia Incorporated, and the Canada Revenue Agency signed a $17.5 million contract for 'machine learning-based analytics' to flag high-risk users.
The Communications Security Establishment and the Canadian Security Intelligence Service declined to share AI contract data, citing national security or operational requirements, while the RCMP reported no centralized database for the information.
Conservative MP Jagsharan Singh Mahal requested this data to scrutinize technology expenditures, continuing parliamentary oversight as lawmakers seek greater transparency regarding significant public sector investments in emerging AI technology.