Canada lags on AI adoption as federal government prepares national strategy
The federal government will unveil a national AI strategy this week as Canada ranks 15th among 20 industrial peers on technology adoption, according to a 2024 study by the Conference Board of Canada.
Artificial Intelligence Minister Evan Solomon is expected to announce the policy framework, which he has said will balance support for AI development with concerns about job losses and workforce displacement.
Google's chief economist, Dr. Fabien Curto Millet, said the government's "AI for all" approach is sound. He warned that without deliberate policy, large companies will adopt AI quickly while smaller players and entire sectors fall behind.
"If you let AI happen on autopilot, you will have big companies adopting quickly, but you will get jaggedness or uneven adoption," Dr. Curto Millet said in an interview while in Canada for a University of Toronto conference.
The adoption gap
Canada ranks 44th of 47 countries in AI literacy, according to a June study by KPMG and the University of Melbourne. The disparity is striking given Canada's research strength: Geoffrey Hinton, an emeritus professor at the University of Toronto, is considered a pioneer in the field, and Canadian universities including U of T and Waterloo lead in AI research.
Small-to-medium-sized enterprises and sectors like healthcare and education have historically lagged on adopting new technology. A Vector Institute and Deloitte study from November estimated that AI adoption could add $298 billion to Canada's economy over the next decade-roughly 9 per cent GDP growth-but only if adoption is broad-based.
"Technology is a great leveller of the playing field, but smaller players with fewer paths to adoption need to have access to the tools that can multiply their capabilities," Dr. Curto Millet said.
Government's role
The federal government faces competing demands: capturing AI's economic potential while managing job displacement and ensuring benefits reach beyond major tech companies. Dr. Curto Millet said governments should guard against "gender divides, age divides and sectoral divides" in AI access.
For government workers, understanding AI adoption policy is increasingly relevant. The AI for Government resources and AI Learning Path for Policy Makers offer frameworks for the policy and implementation decisions ahead.
Google parent Alphabet Inc. plans to invest approximately US$185 million this year on AI initiatives including its Gemini service and data centres.
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