Introduction
Canada recently unveiled its new "AI for All" strategy, asserting its ambition to become a global leader in artificial intelligence. With only 12% of Canadian businesses currently using AI, and just 8% of small businesses, the challenge is significant. Ottawa envisions that by 2034, 60% of businesses will adopt AI. However, behind these ambitious goals lies a more opaque reality: contracts with American companies like Palantir, conducted in secrecy.
A Transparency Issue
Canada's Department of National Defence signed a $14.4 million contract with Palantir in 2020, a U.S. company specializing in data analytics. Since then, the contract has been amended multiple times, reaching a value of $44.4 million last year. These often undisclosed expenditures pose a transparency issue, especially since the government advocates for national tech sovereignty.
Prioritizing Canadian Companies
The "AI for All" strategy promises significant support for local companies with a budget of $500 million for equity stakes and $700 million for computing power. However, these measures seem to bypass direct purchase of Canadian products. By avoiding direct procurement contracts, the government sidesteps administrative complexity but also misses the opportunity to strengthen the local ecosystem.
The Impact of Public Investments
Investing in promising businesses can be beneficial, but when the state takes an equity stake, it can influence corporate governance. This may discourage entrepreneurs fearing excessive interference. Moreover, these investments do not guarantee the use of local products by the public sector, which was one of the initial goals of the strategy.
The Palantir Example
The use of Palantir's Gotham platform by the Ontario Provincial Police since 2015 exemplifies the issue. Although these data-fusion and decision-support systems are useful, they are not developed by Canadian companies. This raises questions about the government's true commitment to supporting national innovation.
Conclusion
For Canada to achieve its AI goals, it's crucial that purchasing decisions are transparent and favor local companies. Decision-makers must ensure that aspirations for tech sovereignty are not compromised by deals made in the shadows.
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