Canada’s AI Imperative: Go Big and Bold
Canada continues to stand at a crossroads.
The 2025 Federal Budget was a step in the right direction as the government invested millions in artificial intelligence and recognized the opportunities AI can create for businesses and the economy.
However, Canada must turn ambition into scalable solutions that secure prosperity, competitiveness, and sovereignty, while ensuring adoption is responsible, ethical, and trusted by Canadians.
Data from Statistics Canada signals momentum: information and communication technology firms have reached 36 per cent AI adoption, professional services 32 per cent, and financial services 31 per cent, all reflecting dramatic one-year growth. Together, these sectors contribute $340 billion to GDP, representing 406,000 businesses and 2.8 million jobs.
Beyond these leaders, AI adoption remains limited. Only 12 per cent of businesses use AI, while two-thirds have no plans to. This highlights adoption challenges and untapped potential.
Momentum is an Advantage
Business Data Lab reports that 1 in 7 Canadian businesses (14 per cent) are early GenAI adopters, establishing a strong foundation, but international competitors are investing billions, creating pressure.
AI adoption is central to solving Canada’s productivity challenge. McKinsey research suggests GenAI could deliver 0.1 to 0.6 per cent annual labour productivity growth, potentially enabling Canada to reach U.S. productivity levels by 2030.
The marketing profession illustrates what's possible: research by the CMA and Twenty44 reveals that one year ago, 74 per cent of marketing professionals were already using AI weekly, significantly higher than the 28 per cent adoption rate in professional services shown in Business Data Lab’s analysis. Linking AI to measurable business outcomes can accelerate adoption.
Building on Strong Federal Foundations
Recent government actions have created a powerful launchpad for AI growth. The government’s investments into AI in the Federal Budget, appointment of Canada’s first Minister of AI and Digital Innovation, and the new AI Strategy Task Force are significant steps.
Four priorities will accelerate Canada’s AI advantage:
- Skills Development at Scale
Nearly half (48 per cent) of technical executives identify talent gaps as the primary adoption hurdle. Canada leads the G7 in AI research but must expand literacy beyond technical roles into business and leadership. - Infrastructure Acceleration
Federal investments are a strong start, but rapid deployment of compute access, connectivity, and SME-focused data centres will maximize impact and participation. - Commercialization Enhancement
Canada’s AI research must translate more effectively into business outcomes. Enhanced public-private partnerships can bridge the commercialization gap, ensuring Canadian innovations scale globally. - Regulatory Clarity
With 60 per cent of Canadian firms citing compliance as the top barrier, clear, common-sense standards are critical. Flexible partnership-driven policies, not overly prescriptive regulation, will drive adoption while protecting the public interest. Harmonizing voluntary AI guidelines across federal and provincial jurisdictions will further support innovation. While Europe has strict regulations (though they are considering easing the regulatory burden), the U.S. government wants no regulation and less enforcement. Canada must forge a distinctive regulatory path that champions innovation while upholding ethics, transparency, and public trust.
The Economic Imperative
AI adoption is not optional: it is central to solving Canada’s structural economic challenges. By bridging skills gaps, raising productivity, and boosting competitiveness, AI supports the government’s ambition to grow Canada. International rankings reinforce this. Canada ranks ninth out of 33 countries on Capital Economics’ AI Economic Impact Index, measuring countries' adaptability, innovation, and diffusion of AI technologies.
The Partnership Opportunity
Marketing’s AI leadership demonstrates that when businesses see how AI drives revenue, customer experience, and competitive differentiation, adoption accelerates.
The government’s enabling approach, supporting innovation while safeguarding the public, sets a solid foundation. Partnerships between government, industry, and academia will ensure policy evolves with technology and amplifies capabilities.
Canada’s AI opportunity is within reach. With 1,500 AI-specialized firms, 20 public research labs, and 75 AI incubators, the ingredients for global leadership already exist.
We must go beyond invention and focus on acceleration. By rapidly implementing initiatives and scaling collaboration, Canada can shape AI’s global future on its terms, anchored in Canadian values, aligned with responsible AI, and grounded in ethics, transparency, and consumer trust.
As Minister Evan Solomon said, this is Canada’s “Gutenberg moment.”
We need to act with urgency and ambition. To go big and bold.
Published in The Hill Times on Wednesday, November 19, 2025.
