Federal government spent more than $800M on AI contracts, licensing over 3 years

Ottawa has spent more than $800 million on artificial intelligence technology since 2023, according to data provided by the federal government.

The sum includes two previously announced deals: a $350 million public service contract with Dayforce to replace the troubled Phoenix pay system and a $240 million investment in the AI company Cohere.

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It also includes hundreds of entries that range from a few hundred dollars for a ChatGPT subscription to multimillion-dollar contracts with various companies.

Conservative MP Jagsharan Singh Mahal had asked all government departments, agencies and Crown corporations to provide information about AI-related contracts, subscriptions and licences, but not all complied with the request.

Because of the Dayforce and Cohere agreements, Public Services and Procurement Canada and Innovation Canada were the top spending departments, followed by National Defence at $83.7 million and the Canada Revenue Agency at $29.9 million.

The Communications Security Establishment and the Canadian Security Intelligence Service declined to provide the requested information, while the RCMP said it did not have the information available in a centralized database.

This report by The Canadian Press was first published May 13, 2026.