AI in Canada: Shifting from Innovation to Implementation

In only a few short years, we’ve witnessed artificial intelligence (AI) go from being a creative vision in science fiction and the early genius of researchers to becoming entrenched in our everyday lives. It has seamlessly woven itself into the fabric of our daily lives, often operating in the background of countless applications without us even realizing its influence. 

AI’s transformative impact is wide-reaching, from its prominent role in auto-tech that enables higher levels of safety to its uncanny ability to interact and enable gains in productivity and coding, helping us learn and generate content in natural ways that’s redefining how we harness the power of computing.

However, its influence extends far beyond driverless vehicles and Large Language Models. Entire industries are being reshaped in the face of AI. Take, for example, manufacturing, where AI-enabled quality assurance is reducing the number of defective products leaving the factory to all-time lows; agriculture, in which algorithms are distinguishing between crops and weeds with remarkable accuracy, minimizing crop damage and maximizing yields; or vision systems that can speed recycling or enable real-time inspection in transportation networks. 

What we’re witnessing with AI is truly monumental, and its potential impact on the Canadian economy has only begun to be understood. According to multinational accounting firm PwC, AI has the potential to propel the global GDP by up to 14% by 2030, marking a transformative shift in how countries compete and thrive in the digital age. 

Canada Must Shift Its Focus From Research To Implementation

The transformational benefits promised by AI won’t happen on their own. Adapting and embracing new technologies is always difficult and costly in R&D, especially for industries such as agriculture and manufacturing, which have their own legacy established solutions in place. 

While Canada’s track record of nurturing homegrown technology talent and leading-edge research in AI is impressive, it is not sufficient to drive the adoption of these technologies effectively. There must be a shift in focus to the implementation of AI, which includes support for Canadian AI companies that are building the technology needed for a range of sectors in order to revolutionize their processes and supercharge their efficiency. It is crucial to focus on the downstream use of these technologies to realize their full potential domestically. Consistency and persistence in government initiatives are essential to ensure sustained growth and development in critical sectors. 

The Need for a “Buy Local” Approach to AI

The Canadian government can work towards this AI-driven future by engaging as a customer with its homegrown AI companies—the ones that are engineering the breakthroughs. It’s time for a radical shift in thinking: the need to embrace a “buy local” approach to AI strategy that prioritizes the domestic development of AI solutions.

Cohere is a well-known Canadian success story and a company that develops industry-leading large language models (LLMs). Our company, Untether AI, provides high-performance, energy-efficient AI chips. These are two examples of domestic AI companies gaining international recognition and securing contracts abroad. Case in point: Untether AI recently announced a major partnership with India-based AI startup Ola-Krutrium to power their next generation of data centres.

It is disheartening to observe a drain of AI professionals and firms from Canada, often resulting in the exodus of valuable intellectual property or the necessity to partner outside of Canada to achieve the resources and scale needed to grow. By having a government actively support and engage domestic AI companies and by embracing a “customer model” through grants and incentive programs, Canada can retain and nurture the talent and technology within its borders, contribute to domestic economic growth, build a prosperous AI startup ecosystem, and reinforce its position as a global leader in AI innovation. 

AI Powering the Future Economy 

Untether AI, founded and headquartered in Toronto, Canada, has positioned itself as a global leader in the $100B AI chip market. In a peer-reviewed industry rating, our chip technology has demonstrated up to a sixfold improvement in energy efficiency as compared to NVIDIA cards, heralding a breakthrough in mitigating the substantial energy consumption associated with AI. 

Advancements such as these mark a turning point. While NVIDIA may have captured much of the AI training market, Untether AI chips are designed for the age of AI we’re now entering—engineered to underpin a diversity of industries, including agriculture, autonomous vehicles, smart factories and data centres at the edge worldwide. 

Making Policies as Smart as the Technology 

The partnership with India’s Ola-Krutrim to use Untether AI’s energy-efficient chips to power their data centres not only validates the unparalleled innovation that we are fostering right here in Canada but also highlights that Canada should be paying close attention to the possibilities and significance of scaling such developments within its own national landscape. Provincial and federal governments in Canada have an opportunity to propel the country to the frontlines of the AI revolution by supporting a made-in-Canada strategy.

Last spring, the federal government earmarked an investment of $2.4 billion in AI dedicated to Canadian AI researchers, start-ups, and computing infrastructure. This investment is commendable, but the magnitude of infrastructure required to harness the power of AI requires more than research and setting up one source of computing—it requires a more robust and sustained commitment. And of the $2.4 billion investment, only $200 million is earmarked to boost the adoption of AI in sectors like agriculture and manufacturing. It is imperative for these sectors to receive greater support if Canada is serious about modernizing its economy.

While Canada’s universities and colleges produce exceptional AI talent, the track record of commercializing homegrown intellectual capital is underwhelming, reflecting the urgency for an ecosystem that not only incubates innovation but also fosters its adoption and economic application.

The opportunity and imperative is now.

This is not just about creating the next AI breakthrough. It’s about supporting the domestic startup community, creating high-value jobs and driving innovation that will define the next generation. It’s time for Canada to elevate its commitment to its AI companies, thereby enabling them to power the industries of the future. 

It’s time for policies to be as smart as our technology.