Corporate Canada is broadly backing the federal government’s new artificial intelligence strategy, but some Bay Street firms remain uncertain about how the government’s ambitious targets will be supported by privacy, tax and national security policies. 

The strategy, released last Thursday, aims to invest in AI infrastructure startups and build a sovereign supercomputer, on top of a $500-million fund to finance Canadian technology firms, the value of which was first reported by The Logic.

What matters is not just the strategy, but the speed and “execution,” said Nihar Dalmia, a partner at Deloitte Canada’s AI and data practice.  

In a statement to The Logic, Thomson Reuters CEO Steve Hasker backed Ottawa’s view that “accountability and trust are not optional” when it comes to AI. Manulife global chief AI officer Jodie Wallis called the strategy an “important shift,” but warned that governance must continue to keep pace and focus on economic output, not “generating more experiments or showcases.” 

The vast majority of the country’s financial firms are small and medium businesses, a category that will benefit from the new strategy, said Geoff Rush, who leads KPMG Canada’s global banking and capital markets practice. Cost remains a major barrier for smaller firms, said Melissa Robertson, CPA Canada’s AI and technology lead. The strategy allocates $500 million for regional AI initiatives and $700 million in affordable sovereign compute as part of a package of small business support. 

Robertson also welcomed the government’s pledge to support mid-career workers as part of its goal to create 250,000 new jobs by 2031. While the strategy initially focuses on skilled trades, it also acknowledges that professionals need training, and says Statistics Canada will monitor workforce impacts of AI. Existing programs often overlook mid-career professionals, Robertson said, focusing instead on new graduates or career switchers.

“Any white-collar industry right now is seeing, to some degree, impacts from AI,” she said. “Monitoring what is the worst workforce impact and helping these professions adapt to the new technology I think is really important.”

But the strategy lacks clarity on AI safety enforcement, she said, noting that companies’ internal controls departments and auditors already face complex compliance decisions.

Davies corporate lawyer Max Jarvie echoed the importance of the long-anticipated privacy and online harms legislation to help businesses navigate their AI businesses. 

“The proof will be in the pudding as to what will actually be there” in those pieces of legislation, he said. “The AI strategy, as it currently stands, does not do more than give relatively superficial signals. There isn’t a lot to unearth from the strategy document that suggests what the provisions might look like.” 

He also questioned whether Canada’s plan to take equity stakes in companies with its $500-million Canadian Tech Growth Fund could complicate some investments if government support comes with steep commitments to maintain domestic operations.

Dentons Canada corporate lawyer Andrea Johnson said she is closely watching the government’s decision to classify data as a “national asset.” The language suggests potential for “more road bumps [or] friction” if a non-Canadian wants to acquire data deemed to be a strategic national asset, she said.

Corporate clients will likely favour proposed immigration changes, including expanding the Global Talent Stream and accelerated entry and permanent residency for AI workers, she said. But the policy lacks income tax reform necessary to match U.S. entrepreneurship levels, she added.

The strategy proposes using a sovereign wealth fund to back national AI champions. That language stood out to Johnson, who warned that Canada must not repeat the mistakes of fallen tech superstar Nortel. The strategy’s success will depend on how the government selects those champions, she noted. 

While small businesses need help getting started on AI, major Bay Street firms are already actively deploying it—investing heavily in digital infrastructure and integrating the technology into their own operations. 

The Canada Pension Plan Investment Board spokesperson Michel Leduc said in a statement the fund sees “attractive” investment opportunities in digital infrastructure and welcomes the policy’s focus. The remaining Maple 8 either did not respond or declined to comment on how the AI strategy could influence future investment opportunities or portfolio allocations.

Asked how the new AI strategy could impact the Big Six banks’ internal AI rollout strategy, RBC, Scotiabank, BMO, TD and National Bank did not respond. CIBC spokesperson Tom Wallis referred questions to the Canadian Bankers Association, whose spokesperson Nathalie Bergeron said the banks “support the responsible development and use of AI” given its “growing role in fraud detection, cybersecurity, operational efficiency and customer service.” 

The new strategy is playing catch-up with big business and must move quickly, said Stephanie Terrill, national leader of KPMG’s management consulting practice. Her firm is targeting 80 per cent AI adoption, already surpassing the national target of 60 per cent adoption by 2034.

To maximize the strategy’s corporate impact, Rush said, Canada must achieve the economic growth target outlined in the AI strategy: a three per cent increase in GDP, or nearly $200 billion. 

Deloitte’s Dalmia is optimistic about the GDP growth plan, specifically its AI Missions Program, which will put $200 million toward health-care projects, with other industries to follow. He said the focus on fields like public service, agriculture and natural resources targets areas that impact most Canadians and where Canada is globally competitive. 

The strategy says the government will lean on recent partnerships with Germany, France, Australia, India, Qatar, the United Arab Emirates and others. Dalmia said international alliances are “extremely critical” to secure computing resources. 

Embedding Canadian values and ethics into AI also has economic value, he said.

“That ties to GDP,” he added, because it requires the government to consider how to deploy AI in a way that benefits everyone, not just “one or two organizations.”

Editor’s note: The Logic first reported the value of the Canada Tech Growth Fund. This story has been updated for clarity.