Canada has developed a robust artificial intelligence (AI) ecosystem that supports innovation and growth and has positioned the country as a global leader in this market.
According to the 2023 Deloitte Canada report on Canada’s AI ecosystem (produced on behalf of the Canadian Institute for Advanced Research (CIFAR), the Alberta Machine Intelligence Institute (Amii), Quebec AI Institute (MILA), and the Vector Institute), $2.57 billion was invested in Canadian AI research and development, outpacing several countries including Germany, Japan, Australia, and France in AI research and AI-development funding. Major tech companies like Google, Microsoft, and Facebook have established AI research labs in Canada, particularly in Toronto, Montreal, and Edmonton. These labs conduct cutting-edge research in generative AI and collaborate with local universities and start-ups.
Per capita, Canada ranks third in the G7 in total funding raised for generative AI companies and fourth globally in the number of generative AI companies. Tortoise Media reported that in the first quarter of 2023, global private investment in AI reached $18 billion, up from $9.7 billion in Q4 2022. In 2023, the domestic share of funding for Canadian AI companies was 51%, outpacing the United Kingdom (46%), Israel (38%), and Singapore (32%). As of June 30, 2023, Canada was home to 30 generative AI-focused companies.
The Government of Canada has been actively investing in Canada’s AI ecosystem through various initiatives and programs to support research, foster innovation, and promote the adoption of AI technologies. In April 2024, Prime Minister Justin Trudeau announced several measures included in Budget 2024 that will expand upon Canada’s AI ecosystem by supporting the acceleration of domestic AI job growth and increasing funding for the expansion of (and access to) computing capabilities and technological infrastructure for researchers, start-ups, and scale-ups. Also included are funding measures for small- and medium-sized enterprises (SMEs) that will incorporate AI solutions into product development and funding that supports strengthening and enforcing the Artificial Intelligence and Data Act.
Statistics Canada’s Q1 2024 snapshot of Canadian business sectors using generative AI states that approximately “one in seven Canadian businesses were already using (9.3%) or had plans to use (4.6%) generative AI.” A 2023 article by KPMG Canada stated that one in five Canadians use generative AI tools to help with their work or studies, often for research, idea generation, essay writing, and presentations.
Nestor Gomez, Food in Canada’s Chief Technology Officer, wrote a column on AI and robotics applications within the food industry and various food processes. According to Gomez, AI technology is increasingly being leveraged to enhance multiple aspects of food quality, advertising, distribution, cost savings, and optimization. In their 2024 Food Franchise Report, Franchise Direct Canada noted the increasing technological adaption among food franchises, including integrating AI to analyze customer insights and personalize preferences. Franchisees can “take these insights to personalize marketing efforts. For example, suggesting personalized menu items or promotions based on individual preferences and behavior via app or other communication method.” Other trends included streamlining administrative functions, adjusting pricing for real-time dynamic pricing, and employee scheduling and management.
The Canadian Food Innovation Network (CFIN) was created to foster innovation, competitiveness, and sustainability within Canada’s food and beverage industry and create a space and network where food and beverage industry stakeholders can connect with innovative start-ups and integrate the latest in technology advancement into their businesses. CFIN supports food companies’ growth and innovation by helping them access funding opportunities, technical expertise, market intelligence, and resources to navigate regulatory requirements. This allows companies to enhance their product offerings, improve operational efficiencies, and expand market reach. CFIN membership is free and available outside Canada, and its online platform, YODL, gives members access to the Canadian food ecosystem and the Food Innovators Career Hub, Resource Finder, Funding Finder, collaborators, articles, and discussions. CFIN has more than 4,000 members from across the globe (including manufacturers, processors, operators, distributors, retailers, food service, tech companies, service providers, and funders), and members have secured more than $19 million from CFIN to bring their food-tech projects to market.
CFIN featured Fiddlehead Technologies’ experience partnering with Microsoft to bring generative AI capabilities to their clients. Fiddlehead is working with Toronto-based McCain Foods to improve production and service personnel communication processes and customize detailed marketing messages for their products. The results include greater efficiencies in their production flows, which have allowed McCain to better manage inventory and reduce its waste, costs, and carbon footprint.with Toronto-based McCain Foods to improve communication processes between production and service personnel, and to customize detailed marketing messages of their products. The results include greater efficiencies to their production flows, and have allowed McCain to better manage inventory, reduce its waste, costs, and carbon footprint.
Businesses offering products and services to the AI industry may find opportunities or partners in the Canadian market.
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