The Evolution of Hourly AI/ML Developer Rates in Canada Over the Last 5 Years

Over the past few years, artificial intelligence (AI) and machine learning (ML) have transformed industries across the globe. As businesses in Canada embrace AI-driven solutions, the demand for skilled AI/ML developers has surged. This increased demand has led to a noticeable shift in the AI /ML developer’s hourly rate, with more specialized roles commanding higher pay.

The Canadian tech landscape has evolved rapidly, with cities like Toronto, Vancouver, and Montreal becoming hotbeds for AI development. As AI continues to gain traction, businesses are investing more in these technologies to enhance everything from customer service to data analysis. This growing trend directly impacts the pricing structure of AI professionals.

In this blog, we’ll take a closer look at the AI/ ML developer hourly rate in Canada over the past five years. We’ll explore how these rates have changed, the factors influencing them, and what businesses can expect moving forward.

Why AI/ML Development Has Gained So Much Traction in Canada

Canada has become a rising AI hub, with major research centres supported by strong government backing and a solid education system. Tech giants like Google, Meta, and Amazon have set up AI labs here, while startups are developing solutions across the finance, healthcare, and e-commerce industries. As more businesses embrace AI, the demand for AI and ML developers continues to grow, making their hourly rates a key topic in discussions and budget planning.

AI/ML Hourly Rate Snapshot: Then vs. Now (2019–2025)

The demand for AI/ML developers has rapidly increased over the past few years. As businesses continue to integrate AI technologies, hiring skilled AI/ML developers has become a top priority.

If you’re looking to find AI/ML developer talent in Canada, it’s important to understand how the hourly rate has evolved. From 2019 to 2025, the rates have shifted due to advancements in AI technology, growing demand, and a shift towards more specialized roles.

2019–2020: Early Days of AI Adoption

In 2019 and 2020, AI was still emerging. The hourly rate for AI/ML developers ranged between $30 and $60 CAD, with most roles requiring general AI knowledge. Specialists were rare, and businesses were just beginning to explore AI’s potential.

2021–2022: AI Adoption Grows

By 2021 and 2022, AI became more integrated into business operations, especially due to the pandemic. This drove AI/ML developer hourly rates up to $40 to $60 CAD, with niche roles in deep learning or NLP commanding higher rates in major cities like Toronto and Vancouver.

2023–2025: Mainstream AI and Generative Models

From 2023 onward, AI became mainstream, with advancements like generative AI boosting demand. The AI/ML developer hourly rate now ranges from $73 to $98 CAD, reflecting the need for highly skilled professionals to build and optimize advanced AI systems.

Factors That Influence Hourly AI/ML Developer Rates in Canada

When businesses decide to hire AI/ML developers, understanding the factors that influence their hourly rates is crucial for budget planning. Several key elements, such as experience, specialization, and location, contribute to the rate a developer can command. Let’s take a look at what drives these costs.

Location and Market Demand

• Developers based in Toronto, Vancouver, and Montreal tend to have higher rates due to local demand.
• However, with the rise of remote work, many companies now hire from smaller cities or rural areas where rates might be slightly lower, but the skill set remains strong.

Project Complexity

A simple AI chatbot integration costs much less than a custom-built predictive analytics engine or a real-time vision-based inspection system. As complexity rises, so does the price.

Freelancer vs. In-House vs. Agency

• Freelancers often offer flexible pricing but vary in the consistency of their results.
• In-house developers are salaried, which comes with overhead costs (benefits, tools, training).
• Agencies typically bundle services but charge higher hourly equivalents due to full-stack support.

What Does the Future Hold for Hourly AI/ML Developer Rates in Canada?

As AI technology continues to evolve, the demand for skilled AI/ML developers is expected to rise, influencing their hourly rates. In this section, we’ll explore how these rates may change in the coming years and what businesses can expect moving forward.

Continued Rise in Niche AI Skills

As technologies like autonomous systems, synthetic data generation, and edge AI gain popularity, developers with those skills will see a boost in their hourly value.

AI as a Service (AIaaS) May Stabilize Entry-Level Rates

Platforms offering plug-and-play AI tools could reduce demand for basic AI development, slightly stabilizing entry-level and mid-level rates. However, customization, model optimization, and deployment still require expert hands.

Economic Shifts and Remote Opportunities

Canadian developers are now competing globally. While that brings opportunity, it also requires Canadian companies to offer competitive rates to retain talent. The good news is that businesses can now tap into talent from across the country — urban or rural.

Over the past five years, hourly AI/ML developer rates in Canada have steadily increased, driven by the growing demand for advanced AI solutions. As the industry continues to evolve, businesses must remain aware of these trends to effectively plan their budgets and hire top talent. With specialized skills becoming even more valuable, investing in skilled AI/ML professionals will be essential for staying competitive in the rapidly advancing tech landscape.