Artificial intelligence (AI) is no longer just a frontier technology. It is fast becoming the engine of global economic competitiveness, with the potential to reshape productivity, industries, and even geopolitical dynamics. For Canada, the stakes are especially high. Success will hinge not only on developing world-class research, but also on the rapid adoption and scaling of responsible AI across businesses, government, and society.
Stephen Poloz on the urgency of Canada’s AI moment
As the keynote speaker at the Lawrence National Centre for Policy & Management’s (LNC) 2025 AI Symposium, Building a Stronger Economy: How Can Canada Be a Global Leader in AI Adoption?, Stephen Poloz, former Governor of the Bank of Canada and Chair of LNC, set a tone of both caution and opportunity. Before a room of senior leaders from business, government, and academia, Poloz argued that AI must be understood as part of a much larger transformation, the Fourth Industrial Revolution.
“The world has changed in the last six months, and not for the better,” Poloz said, pointing to what he described as a “seismic global realignment” driven by both economics and geopolitics. He situated today’s turbulence, from trade wars to populism to protectionism, within a longer economic history. Past industrial revolutions, he reminded the audience, were marked not only by technological breakthroughs but also by financial upheavals, inequality, and political polarization.
“We are now just entering the Fourth Industrial Revolution, the digitalization of every aspect of our lives and the integration of artificial intelligence,” he said. “Now, does anybody here have any reason to believe that this will differ from the first three?”
Poloz argued that just as the steam engine, electricity, and computers reshaped societies, AI will generate both profound productivity gains and disruptive side effects. The challenge, he stressed, is to learn from history and act decisively rather than allow economic and political fault lines to widen unchecked.
His remarks underscored the symposium’s central theme: while Canada has excelled in AI research and startup creation, it risks falling behind global competitors in scaling adoption across industries. For Poloz, this is not merely a matter of economic competitiveness but of national resilience.
“By far, the biggest potential move for Canada is to fully embrace AI and the rest of the Fourth Industrial Revolution, facilitate it, speed it up in every way that we can,” he said.
He pointed to the productivity surge unleashed by computers in the 1990s as a cautionary precedent.
“The third industrial revolution generated about 15 per cent in productivity increase,” he said. “I believe that the fourth industrial revolution will be at least that size. It certainly looks like it’s happening faster than the previous one.”
The urgency in Poloz’s message was clear: with global competitors accelerating their AI integration, Canada cannot afford incrementalism.
“The best defense is a good offense,” he said, calling for bold policy, aggressive investment, and leadership from both government and industry.
Unlocking AI for small and medium businesses
While there are preliminary indications that Canada’s largest corporations are advancing AI adoption, the backbone of the economy — small and medium-sized enterprises (SMEs) — risk being left behind. Alyza Keshavjee of Google Canada described this as a paradox whereby Canadians already interact with AI daily, often unknowingly, but smaller businesses lack the time and resources to integrate it strategically.
“It’s not that they don’t want to. It’s not that technology is not available… It’s that they may not have the capacity, the time, the wherewithal, to embed it into their business and into their systems,” she said.
Michael Pelosi, Canada Country Manager at Cohere, a Toronto-based AI company specializing in large language models for enterprises, emphasized that adoption requires more than access to technology.
“Just having the technology is phase one, but you also need the motivation to use it, an understanding of how to use it the right way, in a way that’s safe… and that takes time, and that takes a lot of resources and the right partners,” he said.
He urged firms to start with practical improvements – such as improving website search or customer service – rather than chasing more complex applications.
Both speakers highlighted the risk of SMEs falling behind if adoption stalls. Keshavjee argued that the opportunity lies in making AI adoption simple and practical for entrepreneurs.
“We need to think about ways to make it feel… simple and digestible. What are business problems that you can fundamentally accelerate and help business leaders solve?” she said.
Government as catalyst and customer
Speakers agreed that the government must play an active role in building Canada’s AI future.
Michael Schaan of Industry, Science and Economic Development Canada, argued that AI can no longer be treated as a niche sector.
“It is, in fact, a full factor of production in the economy. And that’s why you need a ministry dedicated to its advancement,” he said.
Schaan noted that Canada has invested heavily in research and infrastructure, but must now focus on commercialization and scaled adoption.
Government procurement emerged as a particularly powerful lever. Kara Beckles of the Treasury Board Secretariat highlighted the mismatch between existing processes and the speed of digital innovation.
“We have the exact same process for buying a helicopter as we do for buying a LLM. We need to rethink some of these processes,” she said.
By streamlining procurement and prioritizing Canadian-made solutions, Beckles argued, the government can both improve service delivery and strengthen domestic firms.
John Watson, Group President of Bell Canada Enterprises, reinforced the point, calling for government to serve as an “anchor tenant” for sovereign AI infrastructure.
“It’s not easy to go and build a sovereign stack,” he said.
For many panellists, a government willing to invest boldly and act as a first customer would send a strong signal to global markets that Canada intends to lead.
Retaining talent and technology in Canada
Canada’s leadership in AI research is well known, but the challenge lies in ensuring that the ideas, companies, and talent it produces stay rooted here. Watson suggested Canada risks losing its brightest innovators to foreign buyers if larger firms and policymakers fail to nurture them.
“One after the other, we see these things happening… maybe shame on big companies for not leaning in,” he said.
Watson called for stronger partnerships between large firms, universities, and startups to create the scale necessary for global success.
The message was clear: without deliberate action, Canada risks becoming a nursery for innovations that ultimately benefit other economies. To counter this, panellists stressed that both the private and public sectors must commit to creating the infrastructure, incentives, and markets that allow Canadian AI firms to grow at home.
Reasons for optimism
Despite the challenges, the symposium closed on a note of optimism. Salim Teja, HBA '96, of Radical Ventures, pointed to a growing sense of urgency and coordination across sectors.
“It feels like the urgency for getting organized and starting to action plans is growing, and I think that is a good thing,” he said.
Teja argued that Canada now has the chance to rally around its emerging champions, helping them scale globally with support from government and industry.
Pelosi pointed to the importance of clear incentives and leadership to accelerate adoption.
“If we can drive and incentivize adoption, starting at the top with government itself, showcasing how this can be done and change the fabric of the Canadian economy, I think that sends a strong message to others that they can do it as well,” he said.
Watson captured the prevailing mood.
“Yes, we need to build this. Yes, it needs to be Canadian-owned. Point finale,” he said.
The overwhelming takeaway from the symposium was not just about what Canada must overcome, but about the possibilities already within reach if business, government, and researchers move forward together.
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