Artificial intelligence industry in Canada

Artificial intelligence industry in Canada

The artificial intelligence industry in Canada is a rapidly expanding sector. Although Canada held a pioneering role in the early development of artificial intelligence, transforming research excellence into broad commercial adoption has proven challenging. Despite globally recognized scientific achievements and a deep pool of skilled experts, by June 2024, Canada recorded the lowest rate of AI integration among OECD countries, with only 12% of firms implementing AI in their products or services. However, AI adoption has shown significant momentum—doubling from mid-2024 to mid-2025, rising from 6.1% to 12.2%. As of September 2025, Statistics Canada indicated that while about one-third of Canadian businesses had no plans to adopt artificial intelligence in the next year, 14.5% reported intentions to begin using AI for producing goods or delivering services. The primary reasons for not moving forward with AI were lack of relevance, insufficient knowledge, and privacy concerns. According to Public Works Canada (PwC), the pace of AI adoption in Canada is roughly three-quarters of the United States rate, highlighting a notable gap between the two countries in business integration of this technology. British-Canadian computer scientist Geoffrey Hinton stated in 2025 that Canadian companies are adopting artificial intelligence at a slower pace, which may result in the loss of the country's early advantages in the field. At the "All In AI" conference held in Montreal in September 2025, the Minister of Artificial Intelligence and Digital Innovation Evan Solomon, described "Building digital sovereignty" as the most pressing democratic issue of the time. He introduced a 26-person task force focused on updating Canada's AI strategy. In their 2024 report " "Learning Together for Responsible Artificial Intelligence" report, the Innovation, Science, and Economic Development Canada stressed that public awareness, trust, and AI literacy are essential for the responsible adoption and governance of AI in Canada. Montreal workshops in 2021 expanded the OECD's 2019 definition of AI as "the set of computer techniques that enable a machine (e.g., a computer or telephone) to perform tasks that typically require intelligence, such as reasoning or learning. It is also referred to as the automation of intelligent tasks. Scientific developments in AI, such as deep-learning techniques, have made it possible to design access to huge amounts of data and ever-increasing computing power. These new techniques have been rapidly deployed on a large scale in all areas of social life, in transport, education, culture and health." == Federal investments and policy == The 2025 federal budget allocates over $1 billion over the next five years to bolster Canada's artificial intelligence and quantum computing ecosystem. == Industry landscape or research hubs == AlexNet, an influential deep convolutional neural network developed at the University of Toronto by Alex Krizhevsky, Ilya Sutskever, and Geoffrey Hinton, marked a pivotal turning point in modern artificial intelligence. In 2012, it achieved a dramatic reduction in error rates for the ImageNet Large Scale Visual Recognition Challenge (ILSVRC), showcasing the practical power of deep learning and GPU acceleration. The success of AlexNet helped cement Canada’s reputation for AI leadership and inspired rapid adoption of deep learning across the technology sector, with ongoing impact in both academic and commercial domains. In healthcare, AlexNet has been adapted for medical imaging to assist with analyzing radiographs, mammograms, and other scans, including identifying abnormalities and supporting clinical diagnosis. In 2015, the Ottawa-based start-up Advanced Symbolics Inc. (ASI) began developing Polly, an artificial intelligence system designed to analyze and anticipate how target audiences behave—enabling more effective communication strategies and advertising campaigns. Polly was named after its first assignment analyzing the politics of Brexit. The AI gained widespread attention in 2016 for accurately forecasting both the Brexit referendum and the 2016 U.S. presidential election won by Donald Trump. The company states that Polly is used by organizations in diverse sectors—including healthcare, politics, entertainment, and mental health research—to support decision-making based on predictive analytics. Chartwatch, an AI tool developed in Canada, has been shown to reduce unexpected hospital deaths by 26% according to a 2024 study. The system analyzes patient data to detect subtle signs of deterioration, supporting healthcare teams in providing timely interventions. === Notable figures in AI in Canada === Geoffrey Hinton's decades-long work eventually formed the foundation of artificial intelligence, which earned him the Nobel Prize for physics in 2024. Yoshua Bengio, who won the Turing Award in 2018 for his pioneering work in deep learning, founded what would become Mila in 1993. Mila, is currently a collaboration between four Montreal-based academic partners.—the Pan-Canadian Artificial Intelligence Strategy includes Alberta's Amii, Toronto's Vector Institute, and Mila. Fakhreddine Karray's work on operational AI has had tangible impact across several Canadian-relevant sectors, notably intelligent transportation systems, virtual healthcare, and driver safety. === AI in the oil and gas industry === According to a 2020 Ernst & Young report the oil and gas industry in Canada is using AI in automating routine, repetitive, and dangerous tasks with technologies like robotic process automation and machine learning; optimizing production and processing; enhancing transportation logistics; improving equipment operation and monitoring; and enabling preventative maintenance. AI is also deployed for data analysis to improve prediction and decision-making, and is expected to automate up to 50% of job competencies in upstream oil and gas by 2040. Oilsands giant Suncor Energy operates a large fleet of autonomous trucks and has started using AI in its dispatch system at the Mildred Lake mine. As of 2024, AI manages routine tasks such as allocating trucks to dump stations and sending them to refuelling locations. === Indigenous and Inuit Innovation in AI === Indigenous organizations have been working on the creation of new technologies for language revitalization in partnership with National Research Council of Canada since the mid-2010s. In 2025, Inuit researchers and technology partners launched an AI-powered initiative to support the revitalization and preservation of Inuktitut, demonstrating how artificial intelligence can be adapted for Indigenous language and cultural priorities. A 2025 CBC article notes that, while AI can help revitalize Inuktitut, Inuit leaders emphasize concerns about data sovereignty, information ownership, and the need for Indigenous leadership to ensure transparency, privacy, and accountability in AI development. == Regulation == Canada's Artificial Intelligence and Data Act (AIDA) was proposed in November 2022, as part of the Digital Charter Implementation Act (Bill C-27). As well voluntary codes, such as the September 2023 Code of Conduct for Generative AI, and landmark investments in advanced computing infrastructure and the Canadian Artificial Intelligence Safety Institute (CAISI) reflect Canada's commitment to both safety and global competitiveness. == AI infrastructure == Canada has undertaken efforts to expand its AI computing infrastructure at both provincial and federal levels. The federal government's Canadian Sovereign AI Compute Strategy, allocated up to C$2 billion in Budget 2024, aims to enhance computing capacity to support domestic AI industry growth and AI adoption across the economy, with up to C$700 million designated to mobilize private sector investment in new or expanded data centres. Alberta has introduced an AI Data Centres Strategy to position itself as a leading North American destination for data centre investment, targeting C$100 billion worth of AI data centres under development by 2030. One major project under Alberta's strategy is the Wonder Valley AI Data Centre Park near Grande Prairie, which was exempted from provincial environmental impact assessment in April 2026 but still requires permits demonstrating safe construction and operation. According to Statista, as of April 2026, Canada has 287 data centres.

Textual entailment

In natural language processing, textual entailment (TE), also known as natural language inference (NLI), is a directional relation between text fragments. The relation holds whenever the truth of one text fragment follows from another text. == Definition == In the TE framework, the entailing and entailed texts are termed text (t) and hypothesis (h), respectively. Textual entailment is not the same as pure logical entailment – it has a more relaxed definition: "t entails h" (t ⇒ h) if, typically, a human reading t would infer that h is most likely true. (Alternatively: t ⇒ h if and only if, typically, a human reading t would be justified in inferring the proposition expressed by h from the proposition expressed by t.) The relation is directional because even if "t entails h", the reverse "h entails t" is much less certain. Determining whether this relationship holds is an informal task, one which sometimes overlaps with the formal tasks of formal semantics (satisfying a strict condition will usually imply satisfaction of a less strict conditioned); additionally, textual entailment partially subsumes word entailment. == Examples == Textual entailment can be illustrated with examples of three different relations: An example of a positive TE (text entails hypothesis) is: text: If you help the needy, God will reward you. hypothesis: Giving money to a poor man has good consequences. An example of a negative TE (text contradicts hypothesis) is: text: If you help the needy, God will reward you. hypothesis: Giving money to a poor man has no consequences. An example of a non-TE (text does not entail nor contradict) is: text: If you help the needy, God will reward you. hypothesis: Giving money to a poor man will make you a better person. == Ambiguity of natural language == A characteristic of natural language is that there are many different ways to state what one wants to say: several meanings can be contained in a single text and the same meaning can be expressed by different texts. This variability of semantic expression can be seen as the dual problem of language ambiguity. Together, they result in a many-to-many mapping between language expressions and meanings. The task of paraphrasing involves recognizing when two texts have the same meaning and creating a similar or shorter text that conveys almost the same information. Textual entailment is similar but weakens the relationship to be unidirectional. Mathematical solutions to establish textual entailment can be based on the directional property of this relation, by making a comparison between some directional similarities of the texts involved. == Approaches == Textual entailment measures natural language understanding as it asks for a semantic interpretation of the text, and due to its generality remains an active area of research. Many approaches and refinements of approaches have been considered, such as word embedding, logical models, graphical models, rule systems, contextual focusing, and machine learning. Practical or large-scale solutions avoid these complex methods and instead use only surface syntax or lexical relationships, but are correspondingly less accurate. As of 2005, state-of-the-art systems are far from human performance; a study found humans to agree on the dataset 95.25% of the time. Algorithms from 2016 had not yet achieved 90%. == Applications == Many natural language processing applications, like question answering, information extraction, summarization, multi-document summarization, and evaluation of machine translation systems, need to recognize that a particular target meaning can be inferred from different text variants. Typically entailment is used as part of a larger system, for example in a prediction system to filter out trivial or obvious predictions. Textual entailment also has applications in adversarial stylometry, which has the objective of removing textual style without changing the overall meaning of communication. == Datasets == Some of available English NLI datasets include: SNLI MultiNLI SciTail SICK MedNLI QA-NLI In addition, there are several non-English NLI datasets, as follows: XNLI DACCORD, RTE3-FR, SICK-FR for French FarsTail for Farsi OCNLI for Chinese SICK-NL for Dutch IndoNLI for Indonesian

BookCorpus

BookCorpus (also sometimes referred to as the Toronto Book Corpus) is a dataset consisting of the text of around 7,000 self-published books scraped from the indie ebook distribution website Smashwords. It was the main corpus used to train the initial GPT model by OpenAI, and has been used as training data for other early large language models including Google's BERT. The dataset consists of around 985 million words, and the books that comprise it span a range of genres, including romance, science fiction, and fantasy. The corpus was introduced in a 2015 paper by researchers from the University of Toronto and MIT titled "Aligning Books and Movies: Towards Story-like Visual Explanations by Watching Movies and Reading Books". The authors described it as consisting of "free books written by yet unpublished authors," yet this is factually incorrect. These books were published by self-published ("indie") authors who priced them at free; the books were downloaded without the consent or permission of Smashwords or Smashwords authors and in violation of the Smashwords Terms of Service. The dataset was initially hosted on a University of Toronto webpage. An official version of the original dataset is no longer publicly available, though at least one substitute, BookCorpusOpen, has been created. Though not documented in the original 2015 paper, the site from which the corpus's books were scraped is now known to be Smashwords.

Medoid

Medoids are representative objects of a data set or a cluster within a data set whose sum of dissimilarities to all the objects in the cluster is minimal. Medoids are similar in concept to means or centroids, but medoids are always restricted to be members of the data set. Medoids are most commonly used on data when a mean or centroid cannot be defined, such as graphs. They are also used in contexts where the centroid is not representative of the dataset like in images, 3-D trajectories and gene expression (where while the data is sparse the medoid need not be). These are also of interest while wanting to find a representative using some distance other than squared euclidean distance (for instance in movie-ratings). For some data sets there may be more than one medoid, as with medians. A common application of the medoid is the k-medoids clustering algorithm, which is similar to the k-means algorithm but works when a mean or centroid is not definable. This algorithm basically works as follows. First, a set of medoids is chosen at random. Second, the distances to the other points are computed. Third, data are clustered according to the medoid they are most similar to. Fourth, the medoid set is optimized via an iterative process. Note that a medoid is not equivalent to a median, a geometric median, or centroid. A median is only defined on 1-dimensional data, and it only minimizes dissimilarity to other points for metrics induced by a norm (such as the Manhattan distance or Euclidean distance). A geometric median is defined in any dimension, but unlike a medoid, it is not necessarily a point from within the original dataset. == Definition == Let X := { x 1 , x 2 , … , x n } {\textstyle {\mathcal {X}}:=\{x_{1},x_{2},\dots ,x_{n}\}} be a set of n {\textstyle n} points in a space with a distance function d. Medoid is defined as x medoid = arg ⁡ min y ∈ X ∑ i = 1 n d ( y , x i ) . {\displaystyle x_{\text{medoid}}=\arg \min _{y\in {\mathcal {X}}}\sum _{i=1}^{n}d(y,x_{i}).} == Clustering with medoids == Medoids are a popular replacement for the cluster mean when the distance function is not (squared) Euclidean distance, or not even a metric (as the medoid does not require the triangle inequality). When partitioning the data set into clusters, the medoid of each cluster can be used as a representative of each cluster. Clustering algorithms based on the idea of medoids include: Partitioning Around Medoids (PAM), the standard k-medoids algorithm Hierarchical Clustering Around Medoids (HACAM), which uses medoids in hierarchical clustering == Algorithms to compute the medoid of a set == From the definition above, it is clear that the medoid of a set X {\displaystyle {\mathcal {X}}} can be computed after computing all pairwise distances between points in the ensemble. This would take O ( n 2 ) {\textstyle O(n^{2})} distance evaluations (with n = | X | {\displaystyle n=|{\mathcal {X}}|} ). In the worst case, one can not compute the medoid with fewer distance evaluations. However, there are many approaches that allow us to compute medoids either exactly or approximately in sub-quadratic time under different statistical models. If the points lie on the real line, computing the medoid reduces to computing the median which can be done in O ( n ) {\textstyle O(n)} by Quick-select algorithm of Hoare. However, in higher dimensional real spaces, no linear-time algorithm is known. RAND is an algorithm that estimates the average distance of each point to all the other points by sampling a random subset of other points. It takes a total of O ( n log ⁡ n ϵ 2 ) {\textstyle O\left({\frac {n\log n}{\epsilon ^{2}}}\right)} distance computations to approximate the medoid within a factor of ( 1 + ϵ Δ ) {\textstyle (1+\epsilon \Delta )} with high probability, where Δ {\textstyle \Delta } is the maximum distance between two points in the ensemble. Note that RAND is an approximation algorithm, and moreover Δ {\textstyle \Delta } may not be known apriori. RAND was leveraged by TOPRANK which uses the estimates obtained by RAND to focus on a small subset of candidate points, evaluates the average distance of these points exactly, and picks the minimum of those. TOPRANK needs O ( n 5 3 log 4 3 ⁡ n ) {\textstyle O(n^{\frac {5}{3}}\log ^{\frac {4}{3}}n)} distance computations to find the exact medoid with high probability under a distributional assumption on the average distances. trimed presents an algorithm to find the medoid with O ( n 3 2 2 Θ ( d ) ) {\textstyle O(n^{\frac {3}{2}}2^{\Theta (d)})} distance evaluations under a distributional assumption on the points. The algorithm uses the triangle inequality to cut down the search space. Meddit leverages a connection of the medoid computation with multi-armed bandits and uses an upper-Confidence-bound type of algorithm to get an algorithm which takes O ( n log ⁡ n ) {\textstyle O(n\log n)} distance evaluations under statistical assumptions on the points. Correlated Sequential Halving also leverages multi-armed bandit techniques, improving upon Meddit. By exploiting the correlation structure in the problem, the algorithm is able to provably yield drastic improvement (usually around 1-2 orders of magnitude) in both number of distance computations needed and wall clock time. == Implementations == An implementation of RAND, TOPRANK, and trimed can be found here. An implementation of Meddit can be found here and here. An implementation of Correlated Sequential Halving can be found here. == Medoids in text and natural language processing (NLP) == Medoids can be applied to various text and NLP tasks to improve the efficiency and accuracy of analyses. By clustering text data based on similarity, medoids can help identify representative examples within the dataset, leading to better understanding and interpretation of the data. === Text clustering === Text clustering is the process of grouping similar text or documents together based on their content. Medoid-based clustering algorithms can be employed to partition large amounts of text into clusters, with each cluster represented by a medoid document. This technique helps in organizing, summarizing, and retrieving information from large collections of documents, such as in search engines, social media analytics and recommendation systems. === Text summarization === Text summarization aims to produce a concise and coherent summary of a larger text by extracting the most important and relevant information. Medoid-based clustering can be used to identify the most representative sentences in a document or a group of documents, which can then be combined to create a summary. This approach is especially useful for extractive summarization tasks, where the goal is to generate a summary by selecting the most relevant sentences from the original text. === Sentiment analysis === Sentiment analysis involves determining the sentiment or emotion expressed in a piece of text, such as positive, negative, or neutral. Medoid-based clustering can be applied to group text data based on similar sentiment patterns. By analyzing the medoid of each cluster, researchers can gain insights into the predominant sentiment of the cluster, helping in tasks such as opinion mining, customer feedback analysis, and social media monitoring. === Topic modeling === Topic modeling is a technique used to discover abstract topics that occur in a collection of documents. Medoid-based clustering can be applied to group documents with similar themes or topics. By analyzing the medoids of these clusters, researchers can gain an understanding of the underlying topics in the text corpus, facilitating tasks such as document categorization, trend analysis, and content recommendation. === Techniques for measuring text similarity in medoid-based clustering === When applying medoid-based clustering to text data, it is essential to choose an appropriate similarity measure to compare documents effectively. Each technique has its advantages and limitations, and the choice of the similarity measure should be based on the specific requirements and characteristics of the text data being analyzed. The following are common techniques for measuring text similarity in medoid-based clustering: ==== Cosine similarity ==== Cosine similarity is a widely used measure to compare the similarity between two pieces of text. It calculates the cosine of the angle between two document vectors in a high-dimensional space. Cosine similarity ranges between -1 and 1, where a value closer to 1 indicates higher similarity, and a value closer to -1 indicates lower similarity. By visualizing two lines originating from the origin and extending to the respective points of interest, and then measuring the angle between these lines, one can determine the similarity between the associated points. Cosine similarity is less affected by document length, so it may be better at producing medoids that are representative of the content of a cluster instead of the lengt

Multilinear principal component analysis

Multilinear principal component analysis (MPCA) is a multilinear extension of principal component analysis (PCA) that is used to analyze M-way arrays, also informally referred to as "data tensors". M-way arrays may be modeled by linear tensor models, such as CANDECOMP/Parafac, or by multilinear tensor models, such as multilinear principal component analysis (MPCA) or multilinear (tensor) independent component analysis (MICA). In 2005, Vasilescu and Terzopoulos introduced the Multilinear PCA terminology as a way to better differentiate between multilinear data models that employed 2nd order statistics versus higher order statistics to compute a set of independent components for each mode, such as Multilinear ICA Multilinear PCA may be applied to compute the causal factors of data formation, or as signal processing tool on data tensors whose individual observation have either been vectorized, or whose observations are treated as a collection of column/row observations, an "observation as a matrix", and concatenated into a data tensor. The latter approach is suitable for compression and reducing redundancy in the rows, columns and fibers that are unrelated to the causal factors of data formation. Vasilescu and Terzopoulos in their paper "TensorFaces" introduced the M-mode SVD algorithm which are algorithms misidentified in the literature as the HOSVD or the Tucker which employ the power method or gradient descent, respectively. Vasilescu and Terzopoulos framed the data analysis, recognition and synthesis problems as multilinear tensor problems. Data is viewed as the compositional consequence of several causal factors, that are well suited for multi-modal tensor factor analysis. The power of the tensor framework was showcased by analyzing human motion joint angles, facial images or textures in the following papers: Human Motion Signatures (CVPR 2001, ICPR 2002), face recognition – TensorFaces, (ECCV 2002, CVPR 2003, etc.) and computer graphics – TensorTextures (Siggraph 2004). == The algorithm == The MPCA solution follows the alternating least square (ALS) approach. It is iterative in nature. As in PCA, MPCA works on centered data. Centering is a little more complicated for tensors, and it is problem dependent. == Feature selection == MPCA features: Supervised MPCA is employed in causal factor analysis that facilitates object recognition while a semi-supervised MPCA feature selection is employed in visualization tasks. == Extensions == Various extension of MPCA: Robust MPCA (RMPCA) Multi-Tensor Factorization, that also finds the number of components automatically (MTF)

DigitaltMuseum

DigitaltMuseum (lit. 'The Digital Museum') is a website database in Norwegian and Swedish for art, images and cultural history museums. The service was established in 2009 after a trial period. The database is developed and operated by KulturIT. KulturIT ANS was established by the Norwegian Museum of Cultural History and Maihaugen in consultation with the Norwegian Archive, Library and Museum Authority (ABM) in 2007. In 2015, the company underwent a corporate transformation and KulturIT AS was established on 12 February. The website has per 2025 around 2,548,022 images. Many of the images are in the public domain or under Creative Commons licenses and are being imported into Wikimedia Commons. The website's API was developed in 2012. == Institutions == As of 2025, there are 223 collaborating museums. == Mission == DigitaltMuseum aims to make the museums' collections accessible to all interested parties, regardless of time and place. The website aims to facilitate easy use of the collections through various methods including image searches, research, teaching and joint knowledge development. DigitaltMuseum contains collections from several hundred Norwegian and Swedish museums, totalling around five million objects. The website contains both historical images from the areas and themes covered by the museums, as well as images of artefacts from the collections. Parts of the collection have previously only been shown in the museums' exhibitions and books and have therefore rarely or never been shown to the public.

Sammon mapping

Sammon mapping or Sammon projection is an algorithm that maps a high-dimensional space to a space of lower dimensionality (see multidimensional scaling) by trying to preserve the structure of inter-point distances in high-dimensional space in the lower-dimension projection. It is particularly suited for use in exploratory data analysis. The method was proposed by John W. Sammon in 1969. It is considered a non-linear approach as the mapping cannot be represented as a linear combination of the original variables as possible in techniques such as principal component analysis, which also makes it more difficult to use for classification applications. Denote the distance between ith and jth objects in the original space by d i j ∗ {\displaystyle \scriptstyle d_{ij}^{}} , and the distance between their projections by d i j {\displaystyle \scriptstyle d_{ij}^{}} . Sammon's mapping aims to minimize the following error function, which is often referred to as Sammon's stress or Sammon's error: E = 1 ∑ i < j d i j ∗ ∑ i < j ( d i j ∗ − d i j ) 2 d i j ∗ . {\displaystyle E={\frac {1}{\sum \limits _{i