FUTURE OF AI
Pioneering Canada's AI Future
unveils AIDA Legislation, ensuring
hen I began my tenure as Minister of Innovation, Science, and Industry, I was struck by the potential of AI to transform our world. While our government was carving out a way to fuel and sustain an AI leadership role for Canada, I saw an opportunity to seize this moment. Since, we’ve put forward a number of efforts and measures to demonstrate that Canada can be a leader in this emerging industry.
The Pan-Canadian AI Strategy was launched in 2018 to provide federal funding and coordination for AI research and talent, and we followed-up by launching phase two of the AI strategy in 2022, which provided more than $440 million to support AI research, compute power, and commercialization. This work is paying dividends: today, Montreal has the highest concentration of researchers and students of deep learning, and Toronto-Waterloo has the highest concentration of AI start-ups anywhere in the world. We have a strong foundation of talent and institutions to position Canada for success in a AI-enabled world.
In 2020, Canada, in partnership with France, co-founded the Global Partnership
on Artificial Intelligence. Our world-leading Advisory Council on Artificial Intelligence plays a key role in advising our government on the best ways to build our national strengths and global leadership in AI, identifying opportunities for economic growth that benefit all Canadians, and ensuring that AI advancements reflect Canadian values. Canada has also been a leading contributor to international frameworks, including through the G7 Hiroshima AI process and the Bletchley Park Declaration, which I was proud to sign this last November at the world’s first global summit on AI safety.
With that said, we know that powerful AI systems, if not properly safeguarded, can present serious risks to individuals and society.
That’s why, in 2022, I put forward a new legislation: the Artificial Intelligence and Data Act. Once AIDA becomes law, the industry would have clear guardrails to help maximize the benefits and minimize potential harms. AIDA sets a solid foundation for regulating the development and operation of AI systems with significant impacts on health, safety, or human rights. It sets clear
boundaries around unacceptable conduct, while creating space for research and innovation that will lead to tomorrow’s exciting products and services. The Act is designed to be adaptable to future innovations in AI while allowing us to address future risks.
We’re not standing idly by until AIDA comes into force to take action on responsible AI. We recently developed a Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems that is designed to help firms mitigate the risks of generative AI now, and provide a bridge to the regulations that will follow under AIDA.
Today, we find ourselves at an inflection point in AI and we must act now to guide the responsible development and use of this technology in our society. If we miss this chance, we risk not being able to capture the full benefits that AI could generate for better healthcare, energy efficiency, and supply chains.
A clear and responsible framework that provides safety, transparency, and fairness will ensure Canada remains a global AI leader for generations to come.
On November 6, 2023, the Canadian Chamber of Commerce convened a diverse assembly of 30 organizations from across Canada for the inaugural meeting of its Future of Artificial Intelligence (AI) Council. This inclusive Council, representing varied sectors, seeks to navigate the integration of AI into Canadian business and policy while recognizing its global potential as a positive economic force.
Strategically scheduled a week after the Bletchley Declaration and the U.S. White House Executive Order on AI, the Council delved into pivotal discussions, with particular emphasis on the Artificial Intelligence and Data Act (AIDA) in Bill C-27—currently under study by the House of Commons Standing Committee on Industry and Technology.
In response to these significant policy initiatives, the Future of AI Council aims to proactively shape federal AI policy during a period of heightened government scrutiny and regulation. Serving as an action-oriented platform, the Council commits to collaborating with the government to foster Canadian-led innovation and responsibly integrate AI into businesses, driving economic productivity and growth across the nation.
Ulrike Bahr-Gedalia, Council Lead and Senior Director of Digital Economy, Technology, and Innovation at the Canadian Chamber, notes, "It could not be a more opportune time for the Canadian Chamber’s Future of AI Council." Recognizing the profound impact of evolving AI on people's lives, work, and interactions, she emphasizes the complexity of responsible AI integration, requiring a thorough understanding of both
Acknowledging the prevalent focus on mitigating AI risks, the Canadian Chamber and Council members maintain the need to highlight the transformative technology's numerous benefits. While advocating for smart regulations and privacy protections, they stress the importance of striking a balance that supports innovation and commercialization in the burgeoning AI-driven economy.
November concluded with the Canadian Chamber's Artificial Intelligence Executive Summit, a half-day exploration into the ethical and responsible adoption of AI. Featuring Deputy Minister Simon Kennedy of Innovation, Science, and Economic Development Canada as the keynote speaker, the summit represented the Canadian Chamber's proactive stance in advocating for policies that position
AI Grew Up in Canada. Let’s Keep it Working Here.
As the global AI economy transitions from theory to commercialization, Scale AI, one of Canada's Global Innovation Clusters, is working to secure Canada’s rightful place as an AI-business powerhouse.
D.F. McCourt
AI has the potential to address most of our major societal challenges and to serve as a powerful tool to enhance our efficiency across various fields.
In tech circles, in economic circles, in philosophical circles, and in political circles, the big question of the decade is where artificial intelligence (AI) is going to take us next and who is going to be holding the reins. Canada has long been a global leader in cutting-edge AI development, having been home to the research programs of deep learning founding fathers like Geoffrey Hinton and Yoshua Bengio.
Key Canadian research institutions like Mila (Montreal), the Vector Institute (Toronto) and AMII (Edmonton) continue to attract and develop top AI talent, pushing the envelope of AI’s capability. But capitalizing on this domestic expertise requires that we also provide a rich and stable launchpad for AI startups, incubators, and accelerators. Nurturing and shaping an environment where innovative AI business ideas and projects can thrive and succeed is the raison d'être of Scale AI. This business-led consortium supported by the Government of Canada has the mandate to develop an innovative and competitive Canadian AI economy by funding concrete AI applications in a variety of sectors.
“Our goal at Scale AI is to create and grow a new part of the Canadian economy that will establish Canada as an indisputable global hub for AI dedicated to business productivity and competitiveness,” says Scale AI CEO Julien Billot.
“We have facilitated, funded and supported over 100 initiatives across Canadian industries in agriculture, retail, manufacturing, construction, transportation and logistics, mining, energy, and healthcare. By connecting players across the country and financing their AI project implementation we help companies to better their productivity and efficiency. We believe in the importance of a strong ecosystem with thousands of organizations collaborating and investing in AI adoption for the development of new AI services and solutions. This will ultimately create significant new commercial opportunities for small and large Canadian companies.”
The tomorrow of work
The race to the forefront of AI commercialization is not, however, merely an economic imperative. These technologies are going to shape the world in profound ways, affecting every aspect of how we live and work.
“AI is expected to create new opportunities within
existing fields and open up possibilities in areas that are still evolving. It’s a paradigm shift that prompts us to rethink our approach to work and anticipate emerging opportunities. To do so, it’s important to invest in re-skilling and up-skilling programs, such as those offered by Scale AI, supporting a workforce transition that aligns with evolving AI-driven job opportunities,” says Billot. “AI has the potential to address most of our major societal challenges and to serve as a powerful tool to enhance our efficiency across various fields.”
From 2000 to 2022, Canadian productivity declined to 72% of the U.S. level. Emphasizing the importance of AI for competitiveness, Canada must act promptly to avoid lagging behind and struggling to catch up with global leaders. Being at the forefront of AI adoption and innovation also allows us to attract customers, investors, and top talent, giving us a competitive edge in the global market.
AI is now In September 2023, Scale AI co-organized the inaugural ALL IN, a massive event featuring a convergence of AI experts and stakeholders from the worlds of industry, academia, government, and investment. More than 2,300 attendees from 20 different countries came together along with Prime Minister Justin Trudeau and Ministers Champagne and Fitzgibbon to exchange views on the opportunities and issues facing — and raised by — the rapidly growing Canadian AI ecosystem. ALL IN also served as a major international showcase to generate enthusiasm and interest in Canadian expertise, both domestically and internationally, with the goal of subsequently boosting demand for applied AI use cases.
This is perhaps the most critical lesson of all, that we must remember not to talk about AI only in the future tense. AI is already transforming the way we work and the way we live, and it will keep on transforming our existences moving forward. We need to prepare for this new chapter of our journey and realise that there is no better moment than today to start embracing the AI evolution and adopting the technology. That is precisely what organizations like Scale AI are doing, through investments and support to build an AI-powered economy.
Julien Billot CEO, Scale AI
Generative AI: Balancing Potential and Responsibility
Unlocking
In recent years, artificial intelligence (AI) has emerged as a beacon of innovation that has the potential to transform industries and society in profound ways, and the world is already witnessing its impact. In healthcare, AI-enabled diagnostic systems are starting to revolutionize disease detection and treatment planning. The transportation sector sees AI's impact through the emergence of self-driving vehicles, promising more efficient travel. Additionally, AI-powered systems optimize resource allocation in the energy domain, enhancing grid stability and promoting sustainable energy practices.
Like many sectors, financial services is an industry largely guided by data. Banks have long used analytics to better serve clients, whether to ensure the health of the financial system by modelling risk, protect clients through detection and prevention of fraud, or to accurately determine funding needs. The statistics behind these models have been refined and stress-tested for decades and, in many ways, form the backbone of governance and decision-making in banking. When novel machine learning techniques were introduced into the mix, they held great promise for the industry as they lifted prediction accuracy across the board, and many banks followed suit with sizeable investments. According to the latest Evident AI Index, a global standard benchmark of AI maturity for financial institutions, banks have increased their employment of AI talent by nearly 10 per cent over just the past year. In essence, a business that is already greatly informed by data can derive direct value from advances in machine learning compared to enterprises that lack this benchmark.
The Canadian AI ecosystem In Canada, financial institutions benefit directly from a thriving AI ecosystem. The origins of modern AI can be traced back to Canadian universities and the Pan-Canadian AI Strategy introduced by the federal government. This established a community of highly skilled AI practitioners across Canada. In addition to the prominent talent across the country, Canada has been a leading voice on the ethical use of AI, starting as early as 2017 with the Montreal Declaration for Responsible AI. These trends have profoundly influenced Canadian banks, which were already seeking to invest in upgrading their analytics practices. As a result, the recently released Evident AI Index, a global standard benchmark of AI maturity for banks, shows Canadian banks punched above their weight, with RBC rank-
Borealis
ing first in Canada and amongst the world's top three globally for AI maturity across several categories.
Embracing the promise, navigating the risks
Generative AI (Gen AI) is the latest advancement in this field that has captured the world's imagination. With the advent of Gen AI, a single pre-trained model can solve a multitude of problems, making it the accelerant for this technology. Creating applications has also become easier, and deployment is faster than before.
Many believe this scientific development has brought us closer to artificial general intelligence (AGI), although that’s still to be determined. However, the indisputable fact about Gen AI is that it pushed the boundaries of what we thought was possible in human-machine interaction and this holds immense promise for many industries.
Innovative applications in finance
While Gen AI can be leveraged towards many industrial tasks, one of the technology's most intriguing potential uses is in enhancing client servicing. When Gen AI is used in this way, it can aid client service employees in assisting clients quickly and providing more comprehensive answers to client inquiries. Most large consumer-facing businesses today are exploring these options. But in doing so, companies need to balance embracing revolutionary technological advancements and responsibly addressing ethical concerns.
Currently, use of Gen AI comes with concerns about privacy, security, misinformation, and client experience that necessitate meticulous consideration. Financial services are among the most risk-critical and regulated industries because of the sensitive nature of the information handled and the impact that business practices can have on individuals and their communities. Technology such as this will only be implemented if all risks and concerns are addressed.
When we embarked on the journey to build state-of-the-art AI systems at RBC, we also took on the responsibility to do so ethically and transparently, to help our clients thrive and communities prosper. Ensuring accountability and reliability in AI is also crucial for successfully applying AI models;
therefore, we’ve established rigorous model governance processes to ensure our tools are thoroughly vetted. NOMI, RBC's AI assistant, was developed with a client-first lens and was a significant leap in enhancing the customer experience by putting AI insights directly in our clients' hands. AIDEN, the award-winning electronic trading platform by RBC Capital Markets, leveraged advances in reinforcement learning to improve trading quality and earned client trust by offering explainable insights and transparency. Overall, there is a continuum of adoption of AI technology while keeping the bank and our clients safe.
The Future of Generative AI
While the full potential of Generative AI is still being explored, this technology is gaining ground in financial services with solutions that allow immediate productivity gains with direct benefits to clients, all while still under strict human oversight to ensure it is implemented safely and works as intended. One example is the back office, where Gen AI can enable more efficient preparation for client support with applications such as code assist, knowledge search and summarization. RBC and Borealis AI are developing solutions that help our advisors and analysts provide timely, accurate, and personalized advice to clients while navigating large volumes of unstructured data in real-time. This is a direct enhancement of our advisor's capabilities and a safer use of the technology that places humans – and our customers — at the centre of the solution.
Very few innovations look poised to have such a profound impact on business and society as AI. Canada is at the centre of this incredible development and has an opportunity to lead the world in the safe adoption of this technology. This is not the time to hesitate.
Companies must think strategically about AI while also ensuring they have a robust framework in place to address the risks and prioritize responsible development.
sponsored by Borealis AI
Embracing Responsible AI and its Productivity Potential
In today’s rapidly evolving digital landscape, artificial intelligence (AI) is a bedrock of innovation, driving productivity and economic growth. Many experts agree that for Canada, a nation known for its robust technology sector and innovative spirit, prioritizing AI is not just a pathway to technological advancement, but a crucial step towards securing a competitive edge in the global economy.
Montréal based CGI is Canada’s largest IT and business consulting firm. Dr.
Diane Gutiw is a Vice-President and leads the Global AI Research Center for CGI. Dr. Gutiw, who is based in British Columbia, along with her colleague and Canadian AI Lead, Andrew Donaher, recently conducted a detailed analysis on the productivity benefits of AI. Gutiw believes AI is poised to lift Canada’s productivity to new levels.
“We must continue to encourage and push for AI innovation, because the value it brings to improving our lives and businesses is still largely untapped,” Gutiw says. “However, we must do so in a responsible manner, by being thorough and managing risks, in order to ensure that the solutions are accurate, inclusive, transparent, and secure.”
Gutiw adds that Canadian organizations must find intelligent ways to create more value-added products and services with less effort, and AI makes that possible. She says its evolved to become an accessible, versatile, and complementary technology,that
allows us to meet the unique and multidimensional challenges of productivity in Canada.
AI: A Catalyst for Economic Growth
Canada’s commitment to AI research and development has already borne fruit, with cities like Montréal, Vancouver, and Toronto emerging as AI hubs. AI’s potential to boost productivity is immense. By automating routine tasks, analyzing large data sets, and optimizing operations, AI can significantly enhance efficiency across various sectors, including healthcare, finance, and manufacturing. This increased productivity is essential for economic growth, especially in a post pandemic world where industries are seeking ways to innovate.
We
“For business leaders, we believe it is necessary to fully understand the multiple facets of AI to mitigate risks and maximize investment,” Gutiw says. “How the technology works and how and where information is sourced, how to implement it, sustain its benefits, ensure its integrity, reliability and governance, maintain public trust, etc. Transparency about its use is also a vital imperative, regarding the use of AI.”
AI and Productivity
Gutiw points to a recent initiative CGI embarked on in the transportation sector, where AI played a key role in increasing operational efficiency. CGI’s team confronted the challenge by optimizing the client’s service delivery, including reducing the number of empty cargo trips; thereby reducing the carbon footprint of trucks, as well as operating costs. The solution integrated operational research and AI algorithms. Gutiw says these algorithms allowed for solution to predict and continuously learn from dispatcher feedback. Now, the client has visibility into their operational data and a scalable method to manage it and leverage AI driven insights for continued operational improvement.
“CGI is keeping a sharp lens on the future, ambitiously building on our trusted AI foundation to accelerate the AI journey and the race to greater productivity,” Gutiw says. “We recently announced investments of $1 billion over the next three years to continue the expansion of our AI services and solutions in partnership with clients who want to move from experimentation to implementation responsibly.”
How Manulife Is Harnessing the Power of Generative AI and LLMs
Manulife’s AI expertise is optimizing its business operations while highlighting what an ethical, responsible approach to this new technology looks like.
Tania Amardeil
Artificial intelligence (AI) technologies continue their fast-paced development, and the corporate environment is where AI technologies have the greatest potential to shine. Over the last year, generative AI, and specifically the advent of large language models (LLMs), has gained notable attention in the media and amongst organizations.
But what exactly are generative AI and LLMs, how are they being utilized by leading organizations, and how do we ensure their ethical development?
Understanding generative AI
“Generative AI was born out of artificial general intelligence (AGI) research,” explains Jodie Wallis, Global Chief Analytics Officer at Manulife, a Canadian multinational insurance company and financial services provider. “AGI is all about developing AI solutions that simulate human activity or thought. Generative AI is the component of AGI that generates new or novel content, which can take many forms. When it takes the form of text, it’s referred to as Large Language Models.”
LLMs really have one key task, and that’s to generate text. “They do that not simply by reading and presenting back what they've
read, but by using AI to synthesize, generate insights, understand and interpret context, and then provide text that’s more meaningful than simple summarization,” says Wallis. This type of generative AI has many practical uses cases in workplaces like Manulife, including searching and summarizing documents (which is very helpful with process or product documents), optimizing employee productivity (which can include activities like creating agendas or summarizing meetings and calls), enabling agent and advisor assistance (facilitating smoother customer care or customer sales calls), and providing augmented insights. In short, generative AI helps organizations to operate easier, better, and faster — and also to do things they hadn’t been able to do before. It’s easy to see why Manulife has prioritized expanding its AI expertise.
Developing AI responsibly
“Our perspective is that AI solutions offer value for our customers and our organization that we simply can’t get from other technologies,” says Wallis, citing fraud detection as a perfect example of the value and positive
impact that AI solutions can uniquely provide. “There’s a sweet spot where AI provides a key way to achieve the kind of business outcomes that we want to achieve,” she adds. AI governance and safety are increasingly critical factors for business leaders to consider. “AI should always be ethical,” says Wallis. “And it should always be responsible and safe. Ethical development starts first and foremost by making sure that the AI solutions we're developing are aligned to our business code of conduct and ethics.” Manulife pays close attention to details like bias, explainability, accountability, and reliability.
Wallis explains AI can simultaneously enable streamlined operations and improved performance at corporations like Manulife, while at the same time contributing to advancements that have a deep and positive impact on society, like improved health outcomes. Generative AI, and AI in general, is a technology to be ethically and responsibly embraced.
Learn more about Manulife at manulife.ca
This article is sponsored by Manulife