Data-driven analysis reveals how Canada is falling behind in the global AI race, highlighting key areas where the country needs to improve to remain competitive.
Canada’s AI Deficit: By the Numbers
Artificial intelligence (AI) is poised to revolutionize industries and economies worldwide. Yet, despite its early contributions and a strong research base, Canada is lagging in the global AI race. This deficit is evident in several key metrics:
Talent Drain
Many of Canada’s top AI talent are lured away by higher salaries and better resources offered by tech giants in the United States and other countries.
- 32%: Percentage of Canadian AI researchers who have left for the United States, according to a study by the Canadian Institute for Advanced Research (CIFAR).
- 2x: The number of Canadian AI startups acquired by foreign companies in the past five years compared to those staying in Canada.
Investment Gap
Compared to countries like the US and China, Canada’s investment in AI is relatively modest.
- 0.8%: Canada’s share of global private investment in AI, compared to 21% for the United States and 11% for China.
- $15.6B: The total amount invested in Canadian AI startups in 2023, significantly less than the US’s $137.2 billion.
AI Adoption
Canada’s AI ecosystem is fragmented, with limited collaboration between academia, industry, and government.
- 35%: The percentage of Canadian businesses that have adopted AI, compared to 72% of US businesses, according to a KPMG study.
- Rank 15th: Canada’s ranking in the 2023 Global AI Index, behind countries like the US, China, the UK, and Israel
The Impact on Canada’s Economy
This AI lag has serious implications for Canada’s economic future:
- Missed Opportunities: Canadian businesses risk falling behind in adopting AI-powered solutions, missing out on productivity gains and competitive advantages.
- Brain Drain Cost: The loss of top AI talent to other countries represents a significant loss of intellectual capital and innovation potential.
- Economic Growth: AI is projected to contribute trillions to the global economy. Canada’s slow progress could mean missing out on a substantial portion of this growth.
Conclusion
The data paints a clear picture: Canada is lagging in the global AI race. However, it’s not too late to catch up. By taking decisive action in investment, talent, strategy, and regulation, Canada can harness the power of AI to drive economic growth, innovation, and prosperity.
Let’s not let this opportunity slip away. The future of AI is being shaped now, and Canada needs to be at the forefront.
