Why Business Lawyers Should Care
The 2025 federal budget pushes long-awaited policy files: artificial intelligence (AI), open banking, and stablecoins. Together, these moves set the stage for a new wave of fintech deal flow, regulatory compliance, and strategic transactions.
For business lawyers in the space, the message is simple: exciting work is coming your way. Clients across finance, technology, and investment will need guidance as Canada’s regulatory environment changes.
Canada’s Innovation Momentum
Canada has a strong presence in the fintech and AI sectors. In fact, Nvidia CEO Jensen Huang attributes the rise of AI to AlexNet, a project out of the University of Toronto that revolutionized deep learning using Nvidia GPUs.
Despite strong momentum, progress slowed. AI policy remained uncertain as businesses waited for the Artificial Intelligence and Data Act (AIDA) to be finalized. Stablecoins were classified as securities by regulators, slowing innovation and spooking investors. Open banking discussions also dragged out without implementation.
KPMG data shows that fintech investment fell in the first half of 2025 due to uncertainty influenced by several factors, but the government’s push for innovation sends a strong signal to investors.
What Budget 2025 Changes
Artificial Intelligence
The government committed over C$1 billion towards AI and quantum computing development, which helps Canadian firms access computing power to train advanced models and promises to embed AI in government operations. This follows Budget 2024’s C$2 billion AI investment package and signals that Canada wants to rejoin the lead in the global AI race.
As government funding increases, expect an uptick in public-private partnerships and procurement contracts for AI infrastructure. These raise issues around intellectual property ownership, confidentiality, and bias auditing.
Budget 2025 positions Canada as a serious player in innovation. With AI and Fintech investment accelerating, stablecoin rules modernizing, and open banking finally taking shape, transactional and advisory work in the space will expand quickly. Business lawyers who possess both an understanding of the technology and the legal expertise will find themselves at the center of a very exciting space.
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