Build and commercialize AI
innovation for the world in Ontario
The biggest commercial opportunity in today’s economy
AI is poised to become the primary driver of transformation, disruption, and competitive advantage in today’s rapidly changing economy. Its potential to revolutionize global productivity and GDP is immense, necessitating large investments in AI technologies.
PWC’s latest study suggests that the first phase of AI will be used more to ‘augment’ the labour force and productivity, and eventually, the majority of its economic gains will stem from creating enhanced products with deeper personalization, variety, attractiveness, and affordability over time.
By 2030, AI has the potential to contribute a substantial US $15.7 trillion to the global economy, US $6.6 trillion is expected to result from enhanced productivity, while US $9.1 trillion is likely to be attributed to the consumption-side impact.
North America and China are already ahead in the race of developing and commercializing AI technologies and stand to dominate almost 70% of the global economic gains from AI.
The first country in the world to release a national AI strategy
According to the Global AI Index in the Global Advantage research, Canada is now ranked fifth globally for commercial AI-focused ventures. Canada’s success in AI can be attributed to its early implementation of a government strategy. Its 2017 Pan-Canadian Artificial Intelligence Strategy invested CA $125 million in top AI talent and research institutions to build on decades of machine learning research.
It was this early investment in AI that later proved invaluable during the COVID-19 pandemic; the Canadian industry was equipped to support genomic research, outbreak tracking, and data analysis for new insights.
Additionally, in June 2022, The Honourable François-Philippe Champagne, Minister of Innovation, Science, and Industry, unveiled the second phase of this Pan-Canadian Artificial Intelligence Strategy with a CA $443.8 million investment slated for the next 10 years.
Canada’s key strategic priority for AI include:
Home to the world’s densest cluster of AI startups
Companies located in Ontario find themselves in the thick of a very mature AI ecosystem, with the province having the largest number of AI firms in Canada – over 361 pure-play firms, while the Greater Toronto Area (GTA) is the world’s densest cluster of 273 AI startups.
In fact, modern AI is said to have started from Ontario. Geoffrey Hinton, often referred to as the ‘godfather of deep learning’, first discovered neural nets while working in Ontario. The origins of modern AI are deeply rooted here.
Ontario’s AI ecosystem is a magnet for local investment and FDI. CAD $2.86 billion in venture capital investments were made to the AI industry between 2021-22, a 206% increase from 20-21. 273 unique corporate investors made direct investments into Ontario-based AI companies, a 29% rise over from the previous year.
Over 45 companies have invested in AI research labs in Canada over the years. These companies include Microsoft, Google, Uber, Thomson Reuters, Samsung, IBM, Amazon, Intel, NVIDIA, LG Electronics and General Motors.
Canada’s flourishing AI ecosystem is anchored in 3 National AI Institutes: Amii in Edmonton, Mila in Montreal, and the Vector Institute in Toronto.
The Vector Institute for Artificial Intelligence, located in the Toronto Region in Ontario, is a global epicentre for R&D in AI backed by more than approx CA $151 million in public and corporate funding.
The University of Toronto is also renowned in the AI sector in Canada, consistently ranking among the world’s top 5 for research output. With robust collaborations with private companies and startups, U of T has experience in applying AI tools across diverse sectors. As a global hub for AI-related academic research, the university boasts over 110 faculty members, including seven Canada Research Chairs, 18 Canada CIFAR AI Chairs, and 540 graduate students specializing in AI research.
From professors to alumni, contributions from the University of Guelph’s brightest minds have made the city an interdisciplinary AI centre.
As the industry grows, demand for AI talent has also been on the rise. In 2021-22, Ontario witnessed a surge in the creation of approximately 22,458 positions in AI – a 210% increase compared to the previous year. Among these jobs, around one in three are well-paying, offering salaries of $85,000 or more.
In the same period, there has been a spike in admissions into AI-related programs; Vector Institute reported that they saw 1,110 students enrol in their AI programs, reflecting a 17% increase from the previous year. Additionally, the number of AI master’s program graduates rose to 1,007, compared to 700 graduates in the previous year.
Canada’s trade agreements cover markets valued at over US $50 trillion with access to 1.7 billion consumers. Canada has free trade agreements with the largest manufacturing markets in the world: the United States (USMCA), the European Union (CETA) and Asia-Pacific (CPTPP).
Your business can have access to 187 million consumers within a day’s drive of the Greater Toronto Area. Ontario has 4 international and 300 regional airports, 250,000 km of roads and highways, a dozen border crossings and the 6th most internationally connected airport in the world.
See all of our programs and find out how TBDC can maximize the potential in your AI business.
largest AI sector in Canada
new AI graduates with a masters
densest AI cluster in the world
unique investors directly funding AI companies
new AI graduates with a masters
in venture capital investments
Funding, Resources and Organizations
Using the Business Benefit Finder, you can find many more government grants and incentives relevant to your tech startup.
Canada’s Innovation Superclusters foster collaboration among industry leaders, SMEs, non-profit organizations, and post-secondary institutions to accelerate growth in five promising sectors:
As a startup in the Artificial Intelligence space, you can apply for membership to the AI cluster led by Scale.ai. Members have the opportunity to propose and participate in Supercluster projects. Approx CA $750 million over five years has been earmarked for Canada’s Global Innovation Clusters.
Innovation, Science, and Economic Development Canada (ISED) collaborate with Canadians across various economic sectors and regions to enhance investment conditions, boost innovation, and expand Canada’s global trade share.
is a global research organization that is a forefront authority on AI research in Canada. It was established in Toronto as the Canadian Institute for Advanced Research in August 1981. The organization also takes the lead on the Pan-Canadian Artificial Intelligence Strategy.
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