Ottawa sets aside $50 million to provide skills training for workers in sectors disrupted by artificial intelligence
The federal government is ensuring that workers whose jobs may be disrupted by the continuing rise of artificial intelligence will be equipped with the skills they need to be able to adapt.
Under Budget 2024, Ottawa is investing $50 million over four years to provide skills training for workers in sectors disrupted by AI.
"There is a significant transformation of the economy and society on the horizon around artificial intelligence," said Joel Blit, an associate professor of economics at the University of Waterloo, in a CTV News report.
Some jobs will be lost, others will be created, "but there's going to be a transition period that could be somewhat chaotic,” he said.
Overall, Ottawa is investing $2.4 billion to support AI in Canada under Budget 2024.
Ottawa singled out creative industries as among those that will be impacted by AI.
"The creative industries was used as an illustrative example, and not intended as an exclusion of other affected areas," deputy Finance spokesperson Caroline Theriault said in a statement, according to the CTV News report.
The skills training investment support will be delivered through the Sectoral Workforce Solutions Program, which will “provide new skills training for workers in potentially disrupted sectors and communities,” read part of the budget.
The rapid growth of artificial intelligence would expose almost 40% of global employment, with advanced economies facing greater risks, according to a previous analysis from the International Monetary Fund (IMF) released in January.
The IMF chief said roughly half of exposed jobs in advanced economies are at risk due to AI applications executing key tasks that can be carried out by humans, which could lead to lower demand, lower wages, and reduced hiring.
"In the most extreme cases, some of these jobs may disappear," she said.
More support needed amid rise of AI, says expert
Given the scope of the change the AI technology is set to trigger, $50 million is a good first step but won't be "close to enough" when it comes to the scale of the coming transformation, which will be comparable to globalization or the adoption of computers, said Blit.
"Jobs may be reduced to an extent that reskilling may be insufficient," and the government should look at "forms of unconditional income support such as basic income," said Valerio De Stefano, Canada research chair in innovation law and society at York University.
Stefano noted that the government should also consider demanding AI companies "contribute directly to pay for any social initiative that takes care of people who lose their jobs to technology" and asking "employers who reduce payrolls and increase profits thanks to AI to do the same."
"Otherwise, society will end up subsidizing tech businesses and other companies as they increase profit without giving back enough for technology to benefit us all,” he said, according to the CTV News report.
Reskilling amidst rise of AI
Reskilling workers amid the rise of AI requires collaboration between stakeholders, said Juliana Guaqueta Ospina, education specialist at the International Finance Corporation, via the World Economic Forum.
“In the age of AI, industry participation and collaborative approaches are critical for narrowing the gap between traditional tertiary education and the reality of work. Workers need hands-on experience with state-of-the-art technologies. Educators and education institutions need to reimagine pathways and craft learning programmes that align with the technical and practical reality of today’s job market,” she said.
“In some cases, traditional educational credentials and formats must be reimagined and updated. All stakeholders need to collaborate to identify new skill requirements and create sustainable models to upskill and reskill workers at scale and fast.”
Ontario is investing an additional $100 million in 2024–25 through the Skills Development Fund Training Stream under its 2024 budget.
