Retaining the rank of the world’s leading AI hub requires more investment

Article content

There is good news and bad news when Canada is recognized globally as a leading innovation hub for artificial intelligenceand this has implications for business decision-makers when deciding how and when to adopt technology.

Article content

Article content

Canada ranks among the top five AI pioneers in 73 global economies, with significant investment in AI talent, according to the AI Maturity Matrixpublished in November 2024 by Boston Consulting Group Inc. (BCG). It is also among the leading countries with a strong national AI strategy and several government agencies focused on AI development and regulation.

Article content

But Canada’s perpetual underinvestment in AI, coupled with strict federal regulatory requirements proposed in the Artificial Intelligence and Data Act (AIDA), some fear that innovation will come to a considerable halt, while driving even more local top AI talent to head elsewhere for better pay and opportunities.

Munir Nasser, managing director and partner at BCG in Toronto, said Canada has “chronically underinvested in its AI innovation ecosystem,” noting that AI startups here receive less than 3% of North American funding. American venture capitalist in AI.

This lack of funding has contributed to a significant talent drain, he said, with AI professionals increasingly leaving for the United States and global companies where compensation can be 20 to 60 per cent. cent higher than that of their Canadian counterparts.

Aiming to take Canada further on the AI ​​innovation trajectory, the Government of Canada announced a $2.4 billion program to support the AI ​​sector as part of its 2024 Budget .

Around $2 billion is to be allocated for AI infrastructure and business development initiatives under the AI ​​Compute Access Fund, including “computing capabilities and technology infrastructure”, which will facilitate AI research. AI, will help scale startups and provide other support to AI organizations. . Some $200,000 is expected to be dedicated to accelerating the adoption of AI in other sectors, such as agriculture, healthcare and manufacturing.

Article content

Article content

Jas Jaaj, global leader in AI ecosystems and alliances and managing partner of AI at Deloitte Touche Tohmatsu Ltd., said this is a great start, but a key step would be for the government puts in place clear incentives for businesses to achieve the best results in order to improve. productivity at all levels.

He also advises businesses to align with government on incentives and outcomes so they can come up with “win-win proposals” that both parties will feel comfortable pursuing.

For the business sector in particular, he said this will require a willingness to experiment, while “rethinking and reshaping” traditional ways of operating to help combat the productivity crisis currently underway in Canada.

“Whenever we are on the cusp of a paradigm shift like this with a disruptive technology, it will be necessary to try different things in a measured way… and be sure that not all of these scenarios will work” , he declared.

As Canadian businesses wait for AIDA policies to take effect, Jaaj said he sees businesses beginning to self-regulate by building guardrails based on jurisdictions like Europe where regulations are already in place.

Article content

“This is the approach we recommend in the short term so that we don’t freeze and can continue to progress,” he said.

For Canada’s business sector to remain at the forefront of AI innovation, Jaaj said businesses must also have the foundation and controls to have confidence in the data they will have access to for future AI solutions.

“Many organizations carry what we call technical or data debt, meaning they have not historically invested in the right capacity and speed to ensure a well-governed data environment. Now is the time to catch up with them. » he said.

Some companies that forge alliances with Canadian-made AI solution providers and partners are already reaping the rewards. By working with MindBridge Analytics Inc., an Ottawa-based AI startup, KPMG Canada was able to integrate AI capabilities into its Clara cloud audit platform to gain deeper insights that enable better analysis.

“It started in Ottawa and grew into a tool that is now used for audits around the world at KPMG,” said Bryant Ramdoo, partner and national audit and assurance innovation leader. at KPMG Canada.

Article content

The company also took advantage of cutting-edge AI learning opportunities in Canada to upskill its workforce. In 2018, it partnered with Simon Fraser University to offer a digital academy program with a personalized curriculum that allows its employees to earn a Master of Science in Cognitive Analytics.

“(The university) continues to develop highly relevant content in financial reporting, auditing and integrating the latest technologies,” said Ramdoo, who was part of that first class. “Sometimes we’re shy, but we have some really good examples (in Canada) of best in class, both on the technology side and the people side. »

Munir also commends Canada’s talent ecosystem for representing a “huge competitive advantage” with the direct potential to drive higher productivity and economic transformation across all sectors. Yet to continue to be an innovator in AI, he said Canada must embark on a massive change management exercise for the foreseeable future.

“It’s not just about increasing productivity, but also about unlocking creativity and getting our leaders and ecosystems excited about what AI can bring to the Canadian economy and our daily life,” he said.

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financial post.com to your favorites and subscribe to our newsletters here.

Article content