Canada and Coveo Team Up to Deliver Faster, Smarter Public Services with AI

Canada signed an MOU with Coveo to test AI for faster, more accurate public services and leaner operations, with data kept in-country. Start small, measure, govern, then scale.

Categorized in: AI News Operations
Published on: Dec 18, 2025
Canada and Coveo Team Up to Deliver Faster, Smarter Public Services with AI

Canada-Coveo MOU: Practical Takeaways for Operations Leaders

The Government of Canada has signed a memorandum of understanding with Coveo (TSX: CVO) to explore AI-powered experiences across public services. The aim is straightforward: faster, more accurate service for citizens and more efficient operations across departments-while maintaining Canada's digital sovereignty.

Under the MOU, teams will evaluate where AI Search, AI Relevance, and a mix of ML and LLM models make sense, based on specific use cases. Think of it as upgrading service delivery with context-aware answers, securely grounded in enterprise content.

What this means in practice

  • Self-service that actually works: Citizens and staff get precise answers faster, with AI surfacing content that matches their context and intent.
  • Operational efficiency: Reduced call volumes, shorter handle times, and fewer escalations when knowledge is easy to find and consistently accurate.
  • Model fit by use case: Not one model for everything. The stack can flex-search ranking, classification, summarization, or generative-depending on the job.
  • Digital sovereignty: Canadian-built AI, security-first deployment, and data controls that respect public sector requirements.

High-impact use cases to prioritize

  • Citizen portals: Better findability across programs, eligibility, and benefits, reducing time-to-answer and contact center load.
  • Contact centers: Agent assist and knowledge surfacing so staff resolve issues faster and consistently.
  • Internal search: Unified search across policies, procurement docs, FAQs, and manuals to accelerate daily workflows.
  • Program and policy teams: Quick discovery across large document sets for updates, compliance checks, and stakeholder communications.

Risks and guardrails to bake in

  • Privacy and security by design: Access controls, redaction where needed, and clear data residency choices.
  • Model governance: Use the right model for the task, monitor drift, and keep human review in sensitive flows.
  • Quality management: Track answer accuracy, coverage, and feedback loops. Implement audit logs for decisions and content sources.
  • Procurement and compliance: Align with public sector AI standards and document your risk assessments.

How to operationalize-step by step

  • Map top journeys: Identify the 5-10 highest-volume tasks that frustrate citizens or staff.
  • Make content usable: Centralize sources, clean metadata, and set permissions. AI can't recover from missing or messy content.
  • Pilot narrowly: Start with one program or queue. Define clear KPIs: deflection, AHT, CSAT, and accuracy.
  • Close the loop: Capture feedback, improve content, and tune relevance weekly in the first 90 days.
  • Scale with governance: Template what works (playbooks, prompts, safeguards) and roll out across teams.

Why leadership called this out

Federal leaders emphasized practical gains: better day-to-day service, stronger digital sovereignty, and support for Canadian innovation and jobs. Coveo's leadership highlighted instant, context-aware answers for citizens and employees, which translates to time saved and measurable productivity gains.

What's the timeline?

This is an MOU-an exploration phase. Specific deployments will follow binding agreements and governance reviews. Expectations should be set with the understanding that scope and timing can change as pilots validate outcomes.

Useful references

If you lead operations

The upside here is won or lost in execution. Start with high-friction journeys, fix the content backbone, pilot tightly, measure relentlessly, and only then scale. Keep a governance thread running from day one.

If you're building internal capability, a focused upskilling plan helps your team move faster and safer. See curated programs by role at Complete AI Training.


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