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Canada to tighten foreign investment rules for AI, other sectors: report

Artificial intelligence (AI) tools can boost productivity, save time and keep costs down for a business — but a recent Conference Board of Canada (CBoC) report reveals a reluctance among Canadian companies to embrace the cutting edge technology. Anne Gaviola has more on what’s at stake and what’s really behind Canada’s lagging adoption of AI in the workplace – Mar 8, 2024

Canada will require foreign companies to warn the government in advance before making investments or acquisitions in artificial intelligence, quantum computing and space technology, Bloomberg News reported on Tuesday, citing an interview with Innovation Minister Francois-Philippe Champagne.

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The move will aid the government in conducting a national-security review before transactions get too far advanced and would-be investors may be restricted in their access to target companies’ user data or other property while the inquiry is taking place, the report said.

The tougher rules will also apply to investments in critical minerals and potentially other sectors, Champagne said to Bloomberg.

Earlier this month, Champagne said Canada will crack down on foreign investment in the interactive digital media sector to stop state-sponsored actors from endangering national security.

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Canada’s Innovation, Science and Economic Development ministry did not immediately respond to a request for comment.

(Reporting by Utkarsh Shetti in Bengaluru)

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