July 05, 2026 to July 11, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning ICT, cloud computing, digital infrastructure, social media platforms, digital privacy, AI, cybersecurity, blockchain, Web3 and cryptocurrencies. Once a week, we break down the most important updates in this space in under five minutes.

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📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

Federal Government News

Canada and Republic of Korea sign memorandum to cooperate on AI safety

On July 8, 2026, Innovation, Science and Economic Development Canada announced that the Canadian and Korean AI Safety Institutes have entered a memorandum of understanding to facilitate international information exchange concerning AI safety, risk management, and technical evaluations. Both institutes will now jointly pursue interoperable guidelines and standards relevant to the assessment and deployment of frontier AI technologies. The agreement provides for regular consultations and sharing of expertise, methodologies, tools, and risk mitigation strategies, including technical safeguards and oversight mechanisms. The initiative addresses synthetic content risks and positions both countries to enhance their measurement science and collaborative development of evaluation frameworks for emerging AI systems. This partnership is expected to support continued dialogue and collaborative solutions in the ongoing evolution of AI oversight.

Sources: www.canada.ca

Federal investment targets artificial intelligence and digital innovation in Manitoba

Prairies Economic Development Canada, on July 7, announced over $10.2 million in federal funding supporting six Manitoba organizations advancing AI and digital technologies. The initiative is a component of Canada’s AI for All strategy, aimed at assisting SMEs in adoption, competitive scaling, and domestic retention of innovation and talent. Projects span multiple industries, including agriculture, construction, and manufacturing, and support the creation of more than 170 jobs and involvement of 35 SMEs. Funded projects range from drone and sensor equipment libraries for construction firms to AI-powered solutions for factory control, ad-replacement, and expense management platforms. Companies such as Aryval, Construction Clock, ExpensePoint, mode40 ltd., and Taiv Inc. are benefitting from a mix of repayable and non-repayable support under the Regional Innovation Ecosystems and Business Scale-up and Productivity Programs, including cybersecurity and market access enhancements.

Sources: www.canada.ca, www.canada.ca

Parliamentary Secretary Ménard launches Small Business Procurement Program measures to modernize federal contracting

On July 7 and 6, 2026, Parliament Secretary Marie-Gabrielle Ménard, acting on behalf of Ministers Joël Lightbound and Mélanie Joly, introduced new Small Business Procurement Program (SBPP) simplifications directed at reducing complexity, cost, and preparation time for small businesses seeking federal contracts. Coordinated with Innovation, Science and Economic Development Canada, the SBPP features targeted measures to improve accessibility and predictability in procurement, underpinned by $79.9 million over five years to expand Innovative Solutions Canada (ISC). The ISC program integrates technology testing, commercialization, and direct procurement opportunities, providing Canadian firms a platform for product demonstration, domestic scaling, and international market entry. These efforts respond directly to SME feedback regarding procurement barriers and intend to build more resilient supply chains through expanded participation, reduced administrative burden, and improved contract competition under the Buy Canadian Policy.

Sources: www.canada.ca, www.canada.ca

Federal funding supports expanded mobile connectivity for Indigenous communities in Quebec

Innovation, Science and Economic Development Canada, on July 10, 2026, marked the completion of a federally funded project with Bell Canada in Obedjiwan, Quebec. The $806,285 deployment under the Universal Broadband Fund brings expanded mobile service to 28 kilometres of roadway in the Atikamekw of Opitciwan First Nation. The initiative is aligned with government priorities to enhance rural, remote, and Indigenous community access to secure and reliable mobile connectivity. Improved connectivity equips residents with improved resources for emergency response and access to online support services, contributing to strengthened infrastructure and community safety.

Sources: www.canada.ca

Canada invests in AI and remote sensing for agriculture

Agriculture and Agri-Food Canada, on July 9, announced up to $1.65 million in funding through the AgriScience Program for Toronto-based A.U.G. Signals Ltd. The three-year project will develop AI-driven tools for crop health monitoring and yield forecasting. Integrated satellite, drone, and field data will produce platforms for real-time assessment of crop emergence, biomass, drought, and yield predictions. A.U.G. Signals Ltd. will work in partnership with federal scientists on field data collection and validation of AI models, supporting productivity and competitiveness for Canadian producers.

Sources: www.canada.ca

Minister Joly announces federal investments in mining innovation

On July 9, 2026, Minister Mélanie Joly revealed $6.7 million in federal support for two mining innovation projects worth $19.8 million, led by Novamera Inc. and Koonkie Canada Inc. Novamera’s $10.9 million project, receiving $3.8 million from DIGITAL, will scale Surgical Mining technology by blending subsurface imaging, AI, robotics, and conventional drilling for improved precision in mineral extraction. Koonkie Canada’s $8.9 million project, receiving $2.9 million, develops an AI-powered platform integrating environmental DNA, soil health, remote sensing, and Indigenous ecological knowledge for ecological restoration and biodiversity monitoring. Both projects aim to advance Canadian technology commercialization and strengthen critical mineral supply chains.

Sources: www.canada.ca

Canada and Quebec conclude agreement on local infrastructure modernization

On July 9, 2026, Minister Mélanie Joly announced a collaboration between Canada and Quebec to modernize local infrastructure. The agreement, involving provincial and federal governments and various officials, is designed to stimulate regional economic activity, job creation, and infrastructure development. The formal announcement is scheduled for July 10 in Montréal, with the press conference addressing improvements and modernization in regional infrastructure essential for economic growth and community resilience.

Sources: www.canada.ca

StatsCan releases preliminary quarterly data on police-reported hate crime and cybercrime

Statistics Canada issued preliminary quarterly statistics for police-reported hate crime and cybercrime for Q1 2026 on July 9, 2026. The report provides updated figures and trends reflecting cybercrime and hate crime reporting nationwide, contributing to ongoing monitoring and industry awareness of law enforcement activity and digital incident trends.

Sources: www.statcan.gc.ca

StatsCan reports Canadian international trade in services for May 2026

On July 7, 2026, Statistics Canada released data covering international imports and exports of services for May 2026. Imports rose 2.0% to $21.2 billion, while exports increased 0.9% to $20.8 billion. The monthly trade deficit widened from $0.2 billion in April to $0.5 billion in May. These statistics provide context for service sector activity including ICT and digital services.

Sources: www.statcan.gc.ca

Provincial Government News

Alberta sets North American standard for AI-driven government modernization

Alberta announced accelerated modernization of decades-old government technology using AI tools from Anthropic and Google, completing 466 million lines of code review and publishing 21 open-source technical papers. The Ministry of Technology and Innovation’s work includes deployment of custom AI agents for public service transformation, strengthening cybersecurity and reducing modernization timelines by up to 95%.

Sources: www.alberta.ca

Meta announces $13 billion investment for Alberta data centre

Meta will build its first Canadian data centre in Alberta, backed by more than $13 billion investment. The facility is expected to generate over 3,000 construction jobs, 300 operational jobs, and $250 million in annual benefits, alongside road, water, and digital infrastructure improvements. Alberta's regulatory approach requires large data centres to bring their own power and meet environmental standards.

Sources: www.alberta.ca

Alberta invests $50 million in AI research and applications at Amii

Alberta committed $50 million over five years to the Alberta Machine Intelligence Institute (Amii) for AI talent, research, and sector adoption. Funding spans multiple ministries and will support startups, industry adoption, public services, and Alberta’s commercialization strategy via the Alberta Intellectual Property Office.

Sources: www.alberta.ca

British Columbia explores legal action against OpenAI following Tumbler Ridge tragedy

British Columbia’s Attorney General retained B.C. and California counsel to explore legal avenues holding OpenAI accountable for failure to notify law enforcement of threats on ChatGPT preceding the February 2026 Tumbler Ridge school shooting.

Sources: news.gov.bc.ca

What We're Reading This Week

• CIRA funds 15 initiatives strengthening connectivity, safety and digital sovereignty through Net Good Grants: Coverage of sector innovation projects supported by Net Good Grants.
• What is Canada's Online Streaming Act?: Overview and analysis of federal streaming regulation.
• How the federal government’s proposed digital regulator would work: Examination of new digital regulator structures and processes.

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