Canada finds itself at a crossroads in the global race to harness artificial intelligence. While the country still boasts considerable talent and a history of solid AI research, its current strategic approach risks falling behind international peers. To truly benefit from AI’s promise — across economic growth, innovation, and social welfare — Canada needs to roll out a bolder, more comprehensive AI strategy that balances ambition, infrastructure, and ethical safeguards.

At present, Canada’s AI initiatives lean heavily toward high-level research and public-service deployments. That is a good start. But the gap lies in broader adoption across small and medium enterprises (SMEs), tighter integration into core industries like manufacturing, resources, healthcare and services, and stronger domestic capacity to support large-scale compute and data infrastructure. Without that foundation, the theoretical benefits of AI remain confined to labs and select corporate pockets — not diffused widely across the economy.

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A modernized strategy should first expand AI access for businesses of all sizes. SMEs often lack the resources, expertise, and incentives needed to implement AI solutions. Government-supported “starter packs” — offering pre-vetted tools, training modules, data frameworks and use-case templates — could help overcome that barrier. This would democratize AI adoption, spur productivity improvements, and create broader demand for AI talent and services nationwide.

Second, Canada must rebuild sovereign AI infrastructure. That means developing domestic compute power, data-storage capacity, and secure cloud services — rather than relying on foreign providers. A home-grown backbone would support sensitive data work, protect national interest in critical sectors, and attract AI investments from global players looking for trusted environments.

Third, the strategy needs clear governance, transparency, and ethical guardrails. As AI tools become more powerful, concerns around privacy, bias, surveillance and misuse grow. A robust regulatory and oversight framework — enforced across both public and private deployments — is vital to build trust and ensure AI strengthens rather than undermines social values.

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Finally, education and workforce training must scale fast. AI literacy, skilling and reskilling programs can prepare Canadians for the evolving job market and reduce inequality. This includes updating curricula from school level to vocational training, and providing ongoing support for workers whose roles may shift or disappear.