AI-Driven Project to Modernize New Brunswick Forestry Getting $50M Boost from Ottawa

The federal government is committing up to $50 million to help build a digital forestry centre in New Brunswick, an initiative designed to modernize how the province tracks, manages and optimizes its wood supply using artificial intelligence and other digital tools. The New Brunswick Strategic Innovation Centre in Digital Forestry, led by the Northern Hardwoods Research Institute in collaboration with ResearchNB, aims to address mounting pressures on the province's forestry sector, including climate change and U.S. tariffs, by creating online platforms for identifying available wood, planning planting and harvest operations, tracking logs and building a virtual model of the forest. The project carries a total estimated cost of approximately $86 million, with the remaining funds to be divided between ResearchNB and New Brunswick's Department of Natural Resources. Ottawa's contribution of up to $50 million is conditional and subject to project approval and due diligence, according to federal officials. The funding is intended to support the creation of the New Brunswick Strategic Innovation Centre in Digital Forestry, an initiative spearheaded by the Northern Hardwoods Research Institute in partnership with ResearchNB. The centre is designed to develop online tools that will enable more precise tracking and management of the province's wood supply, incorporating artificial intelligence to improve decision-making across the forestry value chain. New Brunswick's forestry industry is confronting a combination of external pressures, including the effects of climate change and ongoing trade tensions with the United States, particularly tariffs affecting softwood lumber exports. New Brunswick's natural resources minister, John Herron, emphasized the sector's importance to the provincial economy and communities. "Forestry is not only part of our economy, it is the pillar that supports numerous communities, offers stable jobs and contributes significantly to the prosperity of our region," Herron said. He added that by leveraging the sector's strengths and embracing digitization, automation and AI, the industry can drive productivity and attract new investment. The digital forestry centre is expected to deliver a suite of capabilities aimed at modernizing forest management in the province. Among the planned tools are systems to identify available wood, determine what should be planted and harvested, and pinpoint areas that require protection. The project will also incorporate log tracking and a virtual model of the forest, providing a comprehensive digital representation of New Brunswick's forest resources. Federal Minister of Energy and Natural Resources Tim Hodgson said the initiative would yield tangible operational benefits. "That means (a) more reliable supply, more efficient, cost-competitive operations, better informed investment decisions, lower costs and better competitiveness for the industry," Hodgson said. One of the most significant operational challenges the digital tools are expected to address is inefficiency in lumber transportation. Gaetan Pelletier, executive director of the Northern Hardwoods Research Institute, highlighted the scale of the problem, noting that approximately 40 per cent of trucks in the sector travel empty. "They go to the woods, pick up a load, deliver to a mill, and then they will turn around and go to the same spot where there's more wood or go into a different area," Pelletier said. By using digitalization, optimization and centralized dispatch of the estimated 200 to 300 trucks operating in New Brunswick, Pelletier said the industry could save approximately $25 million annually by reducing what he termed "empty miles." The forestry industry is a major economic driver in New Brunswick, supporting approximately 24,000 jobs and contributing roughly $1.5 billion annually to the provincial economy, according to the province. With the sector facing both environmental and trade-related headwinds, the digital forestry centre is positioned as a strategic investment in its long-term viability. When asked whether AI-driven technology could eliminate jobs, Pelletier said the opposite was expected. "I think it will create jobs and it will create very interesting jobs and enable those who are doing the work today to be more productive during the day," he told reporters. The total cost of the digital forestry project is approximately $86 million. The federal government's $50 million commitment represents the largest single contribution but remains conditional on project approval and completion of due diligence. According to Herron, the remaining funds would be divided between ResearchNB and the provincial Department of Natural Resources. The announcement was made public in mid-October 2026, with officials framing the investment as a forward-looking effort to position New Brunswick's forestry sector for greater competitiveness in the face of evolving economic and environmental challenges.