The Canadian government has launched Digital Transformation Canada, a new federal organization designed to make government services faster, more secure and easier to access through digital technology.

Prime Minister Mark Carney announced the initiative on September 3, saying Canada needs a government capable of using technology to improve productivity and competitiveness.

The new organization will focus on digital solutions, artificial intelligence and modern technology systems to improve how Canadians interact with federal programs and services.

The initiative builds on the government's AI for All national strategy, which calls for responsible AI adoption across government and greater use of Canadian technology companies.

Ottawa says government procurement can also help Canadian AI companies scale, strengthen domestic technology capacity and support Canada's digital sovereignty.

The launch comes as governments worldwide accelerate investment in AI and digital infrastructure. Canada is also developing responsible data-centre principles intended to expand domestic computing capacity while addressing electricity, water use and community impacts.

Digital Transformation Canada could therefore become an important part of Canada's broader push to modernize public services and build a stronger domestic technology ecosystem.