Canada's AI strategy and the 12 percent
Ottawa's new national AI strategy puts adoption by small and mid-sized businesses on the agenda, alongside new privacy legislation. What a Toronto AI shop thinks Canadian firms should do next.
Canada now has a national AI strategy. Announced on June 4 under the name "AI for All," it is built on three priorities (trust, opportunity and sovereignty) and six pillars, including updating privacy and online-safety laws, encouraging AI adoption by small and medium-sized businesses, and sovereign compute.
The number that frames it came from the Prime Minister: only 12 per cent of Canadian businesses use AI, as The Logic reported. The same report notes that AI Minister Evan Solomon has tabled a private-sector data protection bill with stiff fines, that the government has proposed four bills on AI privacy and safety, and that he has promised not to reintroduce the earlier "high-impact" AI systems bill.
What this means in practice
For mid-sized Canadian firms (the insurers, brokers, clinics and service companies we work with), we read three signals:
- Adoption is now policy, not just opportunity. Expect programs that fund or encourage SMB adoption. The firms with a clear first use case will be ready to use them.
- Privacy will tighten before it loosens. Any automation that touches personal information should be designed for a stricter regime: data minimisation, retention limits, clear purposes and audit logs.
- Sovereignty matters to buyers. Where data lives and which providers process it is becoming a procurement question, not just a technical one.
A practical starting point
The 88% of Canadian businesses not yet using AI do not need a strategy deck. They need one workflow that is high-volume, rule-bound and painful: intake of a standard form, a weekly status-chasing routine, a reconciliation that eats a day a month.
Automate that one, with:
- data that stays in a Canadian or otherwise approved region,
- an evaluation set that proves it works on your cases,
- a person approving anything that affects a customer,
- a log that would satisfy a privacy regulator reading it cold.
Then do the next one. That is how 12% becomes 50%.
Sources
- Minister Solomon highlights Canada's National Artificial Intelligence Strategy, Innovation, Science and Economic Development Canada, June 5, 2026.
- Solomon says new laws will address Canada's AI trust deficit, The Logic, June 16, 2026.