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Northern Potential

Advancing Canada’s AI Ambitions.

In this report, written for the CSA Group, Shift Insights explores the how Canada's new Minister of Artificial Intelligence and Digital Innovation, Canada’s can bolster artificial intelligence (AI) and use it to to improve public services and spur private sector innovation and growth.


Canada has a suite of institutions and policies that can support AI development and diffusion. However, previous challenges with public-sector technology initiatives, coupled with stalling private-sector innovation and technology use, may limit its success.


The challenge is to develop pathways to lead Canada out of its long-standing pattern of under-performance in innovation and technology adoption and become a leader in effective and responsible AI innovation and diffusion. 


To spur AI innovation and diffusion in the private sector, the federal government should:


  • Increase firms’ incentive to innovate, including creating a healthier competition environment and expanding the use of procurement to support domestic AI start-ups

  • Lower firms’ barriers to AI innovation and adoption by expanding financing for innovation and scale-up, facilitating knowledge and resource sharing, supporting skills development, and enhancing support for breakthrough research and development

  • Prioritize institutions, policies, and skills development initiatives that can ensure Canada’s AI ecosystem is ethical, safe and sovereign, and shields citizens from harm

To enable effective and responsible AI innovation and diffusion in the public sector, the federal government could:


  • Empower a central institution with clear responsibility to lead implementation and oversight
    Update strategies to reflect new goals and realities with a focus on a values-first approach

  • Increase investment in public sector IT infrastructure and interoperability

  • Modernize procurement by incorporating more agile procurement practices

  • Bolster public sector digital and managerial skills for AI implementation, use and performance assessment

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