BREAKING NEWS
G7 countries provisionally agree on a strategy to protect critical minerals supply/production and attract investment
The Group of Seven countries are launching a G7 Critical Minerals Action Plan, Prime Minister Mark Carney said in a statement from the G7 Leaders’ Summit in Kananaskis, Alberta.
The plan builds on the Five-Point Plan for Critical Minerals Security established during Japan’s G7 presidency in 2023 and advanced by Italy in 2024.
The Action Plan will focus on diversifying the responsible production and supply of critical minerals, encouraging investments in critical mineral projects and local value creation, and promoting innovation, Carney said.
Critical minerals, which include lithium, cobalt, nickel and rare earth elements, are used in a wide range of advanced technologies, ranging from electric vehicles to smartphones to military hardware.
Most of the supply and processing of critical minerals is controlled by Chinese companies and state entities.
China recently decided to temporarily restrict the export of rare earth elements as part of the tariffs dispute with the U.S. but agreed last week to resume rare earth shipments.
“We [in the G7] recognize that non-market policies and practices in the critical minerals sector threaten our ability to acquire many critical minerals, including the rare earth elements needed for magnets, that are vital for industrial production,” Carney said.
The G7’s plan includes developing a roadmap to promote standards-based markets for critical minerals, in collaboration with industry, international organizations, resource-producing nations, Indigenous Peoples, local communities, unions and civil society.
“The roadmap will establish a set of criteria that constitute a minimum threshold for standards-based markets, strengthening traceability as a necessary measure. As part of these efforts, we will evaluate potential market impacts.”
The G7 also will continue to work with emerging market and developing country partners to develop quality infrastructure, such as economic corridors.
This includes addressing investment barriers and supporting policy and regulatory reforms that improve the investment climate of G7 partners and empower entrepreneurs in low- and middle-income countries, including through the G20 Compact with Africa.
“Our approach will support local economic growth, build community trust and reduce investment risks, creating the necessary conditions to attract responsible private capital,” Carney said.
The G7 will continue to support the development of responsible critical minerals projects through direct partnerships with each other and by promoting private sector investment.
“We encourage our export credit agencies and development finance institutions to identify more opportunities for collaboration.”
G7 countries have rich public and private innovation ecosystems with untapped potential to address strategic technology and processing gaps essential to bringing critical minerals to market, Carney said.
“We will intensify our collaboration to fill targeted innovation gaps in critical minerals research and development, with a focus on processing, licensing, recycling, substitution and redesign, and circular economy. We will work with partner organizations to showcase new technologies and production processes.” Prime Minister of Canada
See also: The G7 leaders also issued statements on artificial intelligence and on quantum technologies.
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Canada and U.K. deepen their collaboration on trade, science, technology and innovation
Prime Minister Mark Carney and U.K. Prime Minister Sir Keir Starmer announced further collaboration on trade, science, technology and innovation. Through their partnership, Canada and the U.K. will work together to:
The two leaders also agreed to strengthen cooperation – both bilaterally and through the NATO Alliance and Five Eyes partnership – to safeguard democratic values, advance global stability and ensure the safety of both countries’ people in an increasingly complex world.
In the area of national security, Canada and the U.K. will work jointly to invest in civil society organizations actively working to counter digital transnational repression through the Joint Canada-UK Common Good Cyber Fund, a first-of-its-kind multilateral fund aimed at supporting civil society actors at high risk.
To kickstart this fund, Canada and the U.K. are providing $5.7 million in seed funding to the fund, which will be disbursed over five years. Prime Minister of Canada
GOVERNMENT FUNDING & NEWS
Federal organizations disregarded government procurement rules and failed to monitor contractors’ work, says Canada’s Auditor General
Federal organizations frequently disregarded government procurement rules that promote fairness, transparency and value for Canadians when they awarded professional services contracts to Ottawa-based information technology staffing company GCStrategies Inc., Auditor General of Canada Karen Hogan (photo at right) concluded in a report.
Between April 2015 and March 2024, 31 federal organizations retained GCStrategies Inc. for services. There were 106 contracts for a total maximum value of $92.7 million, of which about $64.5 million was ultimately paid out.
These figures include the value of the four contracts awarded to GCStrategies Inc. for the ArriveCAN app during the COVID‑19 pandemic.
Federal organizations are responsible for assessing the level of security required for a contract and verifying that the people doing the work have the necessary clearance, Hogan noted.
But her audit found that in 21 percent of contracts examined, federal organizations lacked documentation to show that they had confirmed security clearances.
The audit also found that federal organizations disregarded government policies that required them to monitor the work performed by contractors.
They frequently did not have evidence to show who performed the work, what work was completed, or whether the people doing the work had the required experience and qualifications. Public Services and Procurement Canada (PSPC) “is transforming and modernizing how the department procures professional services by simplifying existing mandatory procurement tools, while addressing the audits and reviews completed between 2023 and 2025," Joël Lightbound, minister of PSPC, said in response to Hogan’s report.
This overhaul of procurement includes measures to mitigate procurement risks, improve contract management practices and encourage the use of business approaches that focus on comprehensive solutions to achieve best value from the private sector, Lightbound said.
To date, he said that PSPC has taken several actions on previous recommendations from the Auditor General, including:
See also in The Walrus: “ArriveCan was a Fiasco – and Just the Tip of Ottawa’s Failing Tech Strategy”
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Canada will move away from “over-indexing on warnings and regulation” for AI, federal minister says
Canada will move away from “over-indexing on warnings and regulation” to make sure the economy benefits from AI, said Evan Solomon, Minister of Artificial Intelligence and Digital Innovation.
His regulatory focus will be on data protection and privacy, he told an audience in Ottawa at an event by the think tank Canada 2020. Solomon said regulation isn’t about finding “a saddle to throw on the bucking bronco called AI innovation. That’s hard. But it is to make sure that the horse doesn’t kick people in the face. And we need to protect people’s data and their privacy.”
The previous Liberal government introduced a privacy and AI regulation bill that targeted high-impact AI systems. It did not become law before the federal election was called.
That bill is “not gone, but we have to re-examine in this new environment where we’re going to be on that,” Solomon said.
He said constraints on AI have not worked at the international level. “It’s really hard. There’s lots of leakages,” he said. “The United States and China have no desire to buy into any constraint or regulation.”
That doesn’t mean regulation won’t exist, he said, but it will have to be assembled in steps.
Canada won’t go it alone, Solomon added, because it’s a “waste of time.”
Getting AI regulation right is critical to Canada’s “economic destiny,” he said.
Solomon said that includes government investments in data centres and research, protecting Canadian intellectual property “and, critically, cranking up our commercialization.”
Solomon outlined four priorities for his ministry: scaling up Canada’s AI industry, driving adoption and ensuring Canadians have trust in and sovereignty over the technology.
That includes supporting Canadian AI companies like Cohere, which he said “means using government as essentially an industrial policy to champion our champions.”
While big companies are leading in using AI, small and medium enterprises are not and the government needs to encourage them, Solomon said. The Canadian Press
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Business leaders need to press Ottawa to invest more in defence tech startups, including with a new public-private organization for adopting Canada-made defence technology
One9, an Ottawa-based venture capital fund focused on defence technology, urged business leaders in an open letter to press the federal government to invest more money in defence tech startups and the funds that back them.
One9, which Toronto-based Kensington Capital Partners acquired earlier this year, also wants a new public-private organization established to adopt Canada-made defence technology.
The letter says One9’s recommendations are based on these principles:
One9 recommends that Canada:
“We have both the opportunity and the obligation to transform how our nation fosters the innovation that will safeguard our future,” One9 said. One9
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Canada’s total manufacturing sales declined by 2.8 percent to $69.6 billion in April in the face of U.S. tariffs, Statistics Canada reported. It was the largest month-over-month decrease since October 2023 and the lowest level since January 2022. Lower sales of petroleum and coal products (-10.9 percent), motor vehicles (-8.3 percent), and primary metals (-4.4 percent) contributed the most to the decline in April 2025. Excluding the petroleum and coal product subsector, total manufacturing sales were down 1.8 percent. According to data collected from manufacturing establishments for April, approximately half of manufacturers reported being affected by the tariffs through various channels. Notably, one-third cited price increases, one-quarter experienced increased expenses for raw materials, shipping or labour, and one-fifth observed changes in demand for products. The data indicates that the transportation equipment (including motor vehicles), primary metal, and fabricated metal subsectors were among the most affected. Ontario saw the largest decline in sales attributed to the tariffs in April. Statistics Canada
The federally funded Canada Infrastructure Bank (CIB) closed its first investment in Nunavut: a $6.7-million loan for the Anuriqjuak Nukkiksautiit Project, which includes a one-megawatt wind turbine and a one-megawatt-hour energy storage system. This loan comes in addition to an $11.3-million contribution from Natural Resources Canada in support of the Anuriqjuak Nukkiksautiit Project, through the Clean Energy for Rural and Remote Communities program. CIB will also invest $108.3 million in a 102.2-MW wind farm in Quebec, including $15.8 million for its first Indigenous equity loan in the province. The project, with operations expected to begin in late 2026, is a partnership between Mi’gmawei Mawiomi Business Corporation, representing the Gesgapegiag, Gespeg and Listuguj Mi’gmaq communities and Innergex Renewable Energy Inc. CIB
The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) invested $5.95 million in Bioenterprise Canada Corporation to deliver the Sustainable Growth and Adoption Program (SGAP). Fifteen food and agri-technology businesses in southern Ontario were awarded funding to partner with organizations that will address their sustainable growth and adoption needs through clean technology adoption and sustainability process enhancements. SGAP recipients receive from $40,000 up to $100,000 in non-repayable project-based contributions to embrace more efficient solutions that will reduce their greenhouse gas emissions. These projects will help to accelerate environmentally conscious business growth and the transition to a green economy in southern Ontario. Bioenterprise Canada
Natural Resources Canada (NRCan) announced an additional $4.9 million in funding to support the Anahim Lake Solar Project, bringing NRCan’s total contribution to nearly $17 million. This new solar energy project will provide the Ulkatcho First Nation with access to a clean and renewable source of energy that is cheaper, safer and healthier than diesel power. Located in Anahim Lake, B.C., the project is set to reduce the need for diesel generation in the remote community by about 64 percent – equal to a reduction of 1.1 million litres of diesel a year – making it one of the largest off-grid solar projects in Canada. The project also includes the construction of new access roads and paths, together with investments in the control and monitoring of the new facility, fire management and security. NRCan
The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced a $1-million investment to support Mississauga-based Nordik Windows Inc. to acquire and install advanced equipment to commercialize a new product line of hurricane-resistant, energy-efficient windows for export into new markets. The new line, which will increase production, will also use recycled materials to help divert waste from landfills. Nordik’s new $30-million, 104,000-square-foot facility will feature a rooftop solar panel system engineered to meet 100 percent of the building’s current energy needs and over 10 electric vehicle charging stations. FedDev Ontario
Competition Bureau Canada is seeking public feedback on a discussion paper, Algorithmic Pricing and Competition. The purpose of the consultation is to strengthen the Bureau’s understanding of algorithmic pricing so it can respond swiftly and effectively to this emerging trend. The discussion paper highlights key questions on algorithmic pricing, including:
Those with experience with algorithmic pricing and its potential impacts on competition are invited to provide feedback on these issues or to bring other related issues to the Bureau’s attention. Feedback can be submitted until July 22 through an online feedback form or by mail to: Competition Promotion Branch; Competition Bureau; 50 Victoria Street; Gatineau, Quebec; K1A 0C9. Competition Bureau Canada
The Government of Manitoba announced it will provide an additional $5 million in operating funding to Research Manitoba to enhance the province’s technology sector through R&D in artificial intelligence, information technology and data. That boosts the province’s total investment in its research ecosystem to $18.5 million. Additional funding will go towards Research Manitoba’s base operating grant of $13.94 million for 2025-26, for investments in research chair positions and to create an Intellectual Property Collective. Govt. of Manitoba
The Government of Nova Scotia’s continued failure to consult with First Nations on uranium exploration is a mistake that will further erode the province’s relationship with Mi’kmaq communities, said the Assembly of Nova Scotia Mi’kmaw Chiefs and a lawyer from Sipekne’katik First Nation. Pictou Landing First Nation Chief Tamara Young said the Mi’kmaq people were neither consulted nor notified when Nova Scotia introduced and then passed a bill that opens the province up to potential uranium mining and hydraulic fracturing. “The lack of consultation is unacceptable and goes against the UNDRIP (United Nations Declaration on the Rights of Indigenous Peoples),” Young said in a statement to The Canadian Press. The Assembly has said it will continue to oppose both uranium exploration and hydraulic fracturing until their environmental concerns have been addressed. The Nova Scotia government added uranium to its list of priority critical minerals on May 14 and issued a request for exploration proposals for three sites with known deposits of the heavy metal. No companies have come forward with a bid. The Canadian Press
The Government of Ontario said, in a new report on how it will meet a 75 percent increase in electricity demand projected by 2050, it will launch a “national conversation” about private sources of funding for new nuclear power plants. The government said it recognizes that nuclear projects are complex and capital-intensive and is exploring the potential for innovative equity partnership opportunities and ownership models that can unlock private sources of capital for the successful development of nuclear generation projects. “As part of that effort, Ontario will lead a national conversation – beginning this year – with Ontario and Canadian pension funds and institutional investors to explore opportunities for investment.” OMERS, the pension fund for Ontario’s municipal employees, is already a partner in Bruce Power, which operates one of the province’s three major nuclear plants. Ontario’s plan, Energy for Generations: Ontario’s Integrated Plan to Power the Strongest Economy in the G7, includes refurbishing and expanding Ontario’s nuclear fleet, renewing aging hydroelectric stations, launching competitive procurements for new generation and storage, and advancing the predevelopment of major projects like pumped storage, to ensure a secure, reliable and clean system in the years ahead while reducing long-term system costs, the government said. Govt. of Ontario
The Government of Quebec will end its $130-million, three-year agreement with Starlink on June 15, ceasing subsidies for rural internet access via Elon Musk’s satellite service. While users will retain access, they’ll lose $40 monthly subsidies and free receivers. Signed in 2022 under Opération haute vitesse, the deal helped connect 10,000 “orphan households” too remote for fibre. Quebec now reports full province-wide coverage, with 369,000 homes connected. Despite the shift, some courthouses will still use Starlink. The federal and Quebec governments have invested $2.5 billion in loans to Telesat, an Ottawa-based company that plans to launch satellites with SpaceX’s assistance. However, Telesat’s service won’t be available until 2027. Gilles Bélanger, Quebec’s internet project head, emphasized the risks of long-term reliance on Starlink, including data exposure concerns. Decoder
RESEARCH, INNOVATION & COLLABORATION
An international coalition of scientific, business and policy leaders issued a declaration calling on G7 leaders to adopt a policy roadmap that will deliver sustained progress on brain health through to the 2026 G7 Leaders’ Summit in France. The Canada Brain Economy Declaration builds on the expanding body of evidence that an erosion of brain health represents an imminent crisis that could cripple major economies if businesses, health systems and governments do not adopt transformative and coordinated solutions. In G7 countries, brain and mental health conditions are now the leading cause of disability and a major driver of lost productivity. The recommendations in the declaration outline concrete steps G7 leaders can take in 2025 to prioritize the creation of a global brain economy – one that will power a more resilient, productive future fuelled by healthy brains to meet the rising global demand for brain capital. The core recommendations are:
The Stem Cell Network (SCN), a Canadian not-for-profit that supports stem cell and regenerative medicine research, announced a $13.5-million investment in 36 new regenerative medicine research projects and clinical trials. This initiative, supported by 63 partner organizations contributing more than $19.5 million in matching cash and in-kind support, represents a collective $33-million boost to Canada’s regenerative medicine ecosystem. The funded projects will drive ground-breaking research across 14 disease areas, including rare diseases such as Rett syndrome and cystic fibrosis. Rooted in the transformative potential of stem cells, regenerative medicine aims to restore or replace damaged cells, tissues, and organs. This funding will support research into a wide range of diseases, including type 1 diabetes, retinal degeneration, lung and cardiovascular disease, and neurodegenerative disorders such as Parkinson’s and multiple sclerosis. Stem Cell Network
Genome British Columbia invested a total of $11 million in 12 projects in environmental DNA aimed at protecting diversity across the province. Environmental DNA monitoring uses trace genetic material left behind in water, air and soil to detect pathogens and assess ecosystem health. eDNA allows scientists and communities to track species without needing to see them directly. It can also monitor health and ecological signals without invasive testing. One key project being supported by Genome BC is eDNA Explorer Canada. Led by Caren Helbing from the University of Victoria alongside experts from eDNA Explorer, the project aims to create a Canadian version of the original eDNA Explorer platform developed in California. Once complete, the portal will allow anyone to understand, evaluate, and share eDNA data gathered in Canadian ecosystems, focusing on biodiversity monitoring, conservation and restoration. Techcouver
U15 Canada welcomed the Government of Canada’s commitment to a new defence and security plan that recognizes the role Canada’s leading research universities can play in supporting the government’s vision for a strong, resilient and sovereign Canada, including through the creation of the BOREALIS defence research bureau to advance cutting-edge research. Leading research universities in Canada are home to expertise and advanced infrastructure in emerging technologies that include arctic monitoring, ocean surveillance, and cybersecurity. At present, however, less than 20 percent of Canada’s spending on defence goes towards equipment and R&D, the second lowest share amongst all NATO members. As Canada seeks to boost defence spending to meet our NATO commitments, it will be critical to realize the unfulfilled potential of Canada’s research ecosystem to contribute towards this effort, U15 said. “Investing in research in this way will help strengthen Canada’s sovereign capacities in areas of critical national importance and enhance our productivity. It will also drive economic and social gains in dual-use technologies that support Canadian competitiveness and elevate Canada’s ambition to be a world-leading hub for research and innovation,” said Robert Asselin, who became CEO of U15 on June 9. U15
Calgary experienced a 13-percent growth in its startup ecosystem value between the 2023 and 2025 Global Startup Ecosystem Reports, in contrast with a 14-percent average decline globally. The 2025 report, by Startup Genome and the Global Entrepreneurship Network, also places Calgary among the Top 30 ecosystems in North America and in the Top 50 emerging ecosystems globally, while giving high marks for the city’s affordable talent and startup return on investment. The city ranked in the Top 10 in North America for talent affordability and was named a Top 15 “bang for buck” ecosystem globally – meaning founders in Calgary get more growth, traction and runway for every dollar spent. The report analyzed data from more than 5 million companies across more than 350 innovation ecosystems worldwide. Calgary highlights from the 2025 report are:
The Social Sciences and Humanities Research Council (SSHRC) announced the winners of its 12th Storytellers Challenge, a national competition that asks postsecondary students to demonstrate – in up to three minutes or 300 words – how SSHRC-funded research is making a difference in the lives of Canadians. After a rigorous selection process, these exceptional Storytellers have demonstrated outstanding creativity and insight in sharing their research journeys and discoveries with the broader public. The announcement was made at the SSHRC Storytellers Showcase, held at the Science Writers and Communicators of Canada conference in Fredericton, New Brunswick. The 2025 Storytellers Challenge winners, who each receives $1,000 in addition to the $3,000 they received as finalists, are:
Some of the world’s biggest streaming companies including Netflix and Spotify will argue in court this week that they shouldn’t have to make Canadian Radio-television and Telecommunications Commission (CRTC)-ordered financial contributions to Canadian content and news. The companies are fighting an order from the federal broadcast regulator that says they must pay five percent of their annual Canadian revenues to funds devoted to producing Canadian content, including local TV news. The companies argue that the CRTC doesn’t have the legal authority to impose the levy. The case, which consolidates several appeals by streamers, including Apple and Amazon, will be heard by the Federal Court of Appeal in Toronto. In December, the court put a pause on the payments – estimated to be at least $1.25 million annually per company. Amazon, Apple and Spotify had argued that if they made the payments and then won the appeal and overturned the CRTC order, they wouldn’t be able to recover the money. The Canadian Press
The Supreme Court of Canada agreed to review a ruling that concluded Facebook broke federal privacy laws by failing to adequately inform users of risks to their data when using the popular social media platform. Last September, the Federal Court of Appeal found Facebook, now known as Meta Platforms, did not obtain the meaningful consent required by the Personal Information Protection and Electronic Documents Act between 2013 and 2015. The decision overturned a 2023 Federal Court ruling. The Court of Appeal said Facebook invited millions of apps onto its platform and did not adequately supervise them. Facebook then applied for a hearing at the Supreme Court, arguing in a written application that the Court of Appeal, rather than evaluating Facebook's multi-layered efforts to obtain meaningful consent, focused myopically on the platform's privacy policy alone. The Supreme Court, following its usual practice, gave no reasons for agreeing to hear the case. The Canadian Press
Sales of new zero-emission vehicles (ZEVs) in Canada including EVs declined by 23.1 percent compared with the same period one year earlier, marking the first year-over-year decline in new ZEV registrations since the beginning of the COVID-19 pandemic, Statistics Canada reported. The drop comes after federal and provincial governments cut rebate programs for EV purchases. In the first quarter, 37,299 new ZEVs were registered, making up 8.7 percent of all new motor vehicle registrations. Among Canada's three largest provinces, the largest decline in new registrations for ZEVs in the first quarter of 2025 was in Quebec (-50.8 percent), which coincided with the province's suspension of subsidies for the purchase of ZEVs from February 1 to March 31, 2025. Historically, Quebec has led in new ZEV registrations, accounting for over half (54.4 percent) of Canada's new ZEV registrations in 2024, thus significantly impacting the national total. New registrations for ZEVs in the first quarter of 2025 also decreased compared with the same period one year earlier in British Columbia (-11.5 percent), while Ontario experienced an increase of 8.9 percent. More ZEVs were registered in Manitoba (+52.6 percent), New Brunswick (+41.9 percent), Nova Scotia (+33.2 percent), Prince Edward Island (+19.4 percent) and Saskatchewan (+12.8 percent) in the first quarter compared with one year earlier. In 2024 – prior to government rebate programs ending – Canada saw a record 13.8 percent of vehicles sold in Canada being ZEVs, which includes battery EVs and plug-in hybrid EVs. Statistics Canada
Norway has made electric vehicles work – even in its remote Arctic regions – through a mix of smart policy and practical infrastructure, The Washington Post reported. Generous government incentives (supported at least indirectly by Norway’s fossil fuel profits) including tax exemptions and reduced tolls, made EVs more affordable than gasoline-fuelled cars. In 2024, nearly 90 percent of new passenger cars sold in Norway were fully electric. Of the cars sold last month, the EV share was 97 percent. By comparison, EVs last year accounted for eight percent of new car sales in the United States, 13 percent in the euro zone and 27 percent in China. A nationwide charging network, powered almost entirely by renewables, helped ease “range anxiety,” even in snowy, mountainous terrain. Early public investment spurred private growth, while consistent support built consumer confidence. Despite cold-weather challenges, Norwegians embraced EVs for their low operating costs and convenience. With the right mix of policy, planning, and incentives, EV adoption can thrive in unlikely places, according to the article by London-based correspondent Karla Adam. The Washington Post
Quebec City-based LeddarTech Holdings Inc., which makes autonomous driving software for vehicles, again laid off most of its employees after talks ceased on a significant commercial deal. The company said it does not expect to resume active operations. The board of directors is continuing its previously announced review of alternatives, including but not limited to, a sale of the business or certain of its assets, an orderly dissolution, restructuring activities, a potential assignment into bankruptcy, or other insolvency proceedings under applicable legislation. LeddarTech
Toronto-based photonic quantum computer firm Xanadu Quantum Technologies Inc. and the University of Toronto will collaborate with the National Research Council of Canada (NRC) on a new research project as part of the NRC's Applied Quantum Computing Challenge program. This collaboration aims to develop new quantum algorithms for quantum dynamics and apply them to simulations of new, faster and more efficient lithium-ion batteries. As the world continues its transition towards renewable energy and electric vehicles, the demand for better battery technology is surging. This includes the need for batteries with higher energy densities, longer lifetimes, faster charging and lower costs. However, designing new cathodes and electrolyte materials for these batteries requires highly accurate simulations of the materials and associated chemical reaction mechanisms. Quantum computing offers a potential solution to this problem by leveraging direct simulation of the underlying quantum dynamics to better capture interactions between electronic and nuclear degrees of freedom. University of Toronto professor Nathan Wiebe and University of Toronto Scarborough professor Artur Izmaylov will lead groups that will prioritize theoretical contributions to quantum algorithms. Dr. Juan Miguel Arrazola's team from Xanadu will place a larger focus on battery simulation application, in collaboration with the NRC's Battery Materials Innovation team led by Dr. Yaser Abu-Lebdeh. Xanadu
Vancouver-based quantum computing firm Photonic Inc. plans to establish a quantum research and development facility in the U.K. Photonic will open the new facility over the next three years, investing more than £25 million. Photonic said its expansion into the U.K. marks a strategic step in the company’s global growth. While its headquarters, core research and foundational technologies remain rooted in Canada, the U.K. investment introduces complementary capabilities – including targeted R&D – that enhance and extend Photonic’s innovation pipeline. Photonic’s expansion to the U.K. “reflects our shared ambition to build a trusted transatlantic quantum future,” said Evan Solomon, federal Minister of Artificial Intelligence and Digital Innovation. “We’re proud to support Photonic as it scales internationally while anchored in Canada – creating jobs, advancing the commercialization of quantum technology, and strengthening Canada’s quantum leadership.” Photonic
Toronto-based AI developer Cohere and Ohio-headquartered Ensemble Health Partners announced a partnership to provide healthcare providers, clinical teams and revenue cycle teams with a purpose-built advanced agentic AI system that reduces administrative burdens while maintaining the robust security and compliance standards that healthcare operations require. Ensemble will use a customized version of North by Cohere, Cohere’s secure AI agents platform, to help reduce administrative friction, improve financial performance and elevate the patient experience for hospitals and health systems. This will be the first application of North for the healthcare industry, a key sector for Cohere due to its data security requirements. Ensemble will use North to quickly build and deploy specialized AI agents that can leverage various disparate data sources, including several electronic health record systems, internal tools and industry data. These agents can also understand industry-specific language to help manage complex claim analysis, like billing and insurance codes, contract terms and payer-specific rules. Cohere
Canada Health Infoway, a Toronto-based non-profit organization funded by the federal government, opened enrollment in its artificial intelligence Scribe Program to eligible primary care clinicians across Canada. The AI Scribe Program uses AI to help clinicians reduce administrative burden and improve documentation workflows. Infoway is providing up to 10,000 fully funded, one-year licences for AI-powered documentation tools, such as scribes to take automated notes, procured from Canadian tech companies. These technologies and the companies include Autochart.ai (by Aya Health Technologies), AutoScribe (Mutuo Health Solutions), Empathia AI, CareWay (MEDFAR), Pippen AI, Mikata Health, ScribeBerry, Tali AI, and WELL Health Technologies. Infoway said the vendors were selected through a “rigorous process” based on their ability to meet national standards and regional needs, support secure data sharing, meet clinical practice requirements, and align with its Shared Pan-Canadian Interoperability Roadmap, which aims to link all care sectors, organizations and providers through health technology and standardized data. Infoway
Montreal-based engineering services and nuclear company AtkinsRéalis Group Inc. announced a collaboration agreement with Électricité de France, one of the world's leading electricity production and distribution companies. The agreement, which will expand the strategic partnership between the two nuclear power nations and better integrate their respective industries, will cover both pre-technology and post-technology vendor selection processes and will include:
Both companies will continue to compete on reactor technology vendor selection processes where appropriate or when asked by governments and developers in support of global efforts to transition to low-carbon energy. AtkinsRéalis
Prince Rupert-based Trigon Pacific Terminals announced a “final investment decision” to build a $750-million liquified petroleum gas export facility at the port of Prince Rupert but faces a big hurdle, John Ivison wrote in his substack Fly Straight. Trigon’s release purports to be a firm plan that will lead to the export of propane to world markets from Trigon’s new facility by late 2029, he said. But the final investment decision “is really a negotiating tactic” aimed at putting pressure on the federal government to overturn an export agreement the port entered into with Dutch company, Royal Vopak in 2015, that gives the Dutch exclusivity off Canada’s West Coast when it comes to sending propane overseas, Ivison said. The Prince Rupert Port Authority is the body that issues the development permit Trigon needs and it has refused to do so because of the monopoly agreement with Vopak. Trigon CEO Rob Booker said his company – which has several coastal First Nations on board as equity partners – has come to the table with investment dollars and now needs the federal government “to expedite this shovel-ready project that is clearly in the national interest.” In a release, Trigon said the project meets the federal government's recently identified criteria for projects of national interest and the Prince Rupert Port Authority is blocking the project “with an unfair, anti-competitive monopoly.” Fly Straight
Toronto-based advanced recycling company Cyclic Materials announced a US$25-million investment to launch North America’s first centre of excellence for rare earth recycling in Kingston, Ont. Spanning over 140,000 square feet, the first-of-its-kind facility will serve as Cyclic’s industrial and innovation backbone, combining full-scale commercial processing and cutting-edge research and development to address one of the world’s most pressing supply chain challenges: the resilient sourcing of rare earth elements for use in permanent magnets. The Kingston Centre of Excellence will house Cyclic’s first commercial “Hub” processing unit, leveraging the company's proprietary REEPureSM technology. The facility is designed to convert 500 tonnes of magnet-rich feedstock annually into recycled mixed rare earth oxide – a product containing crucial components for permanent magnets used in EV motors, wind turbines and consumer electronics. Feedstock for this facility will be sourced from both Cyclic’s Arizona-based “Spoke,” where end-of-life products will be processed, as well as a growing network of partners supplying magnet scrap from production. Operations at the Kingston facility are scheduled to begin in the first quarter of 2026. BusinessWire
Toronto-based Canstar Resources Inc. announced a letter of intent for a partnership with California-based Terra AI to use Terra AI’s technology to optimize drill testing at Canstar’s $11.5-million exploration sites in central Newfoundland. The initial focus will centre around the Mary March discovery hole, which returned: 4.2 grams per tonne (g/t) of gold, 122 g/t silver, 10.1 percent zinc, 1.8 percent lead, and 0.64 percent copper, according to historic unverified assays. The partnership will leverage TerraAI’s proprietary platform to ingest and analyze datasets from the Buchans project, where a geophysics program is underway with Abitibi Geophysics. Combined with the extensive public and historical data from this prolific volcanogenic massive sulphide district, the technology is designed to generate high-confidence drill targets and optimize drilling programs in real-time. The central Newfoundland mining region produced zinc, lead, copper, silver and gold from the 1920s to the 1980s. Canstar Resources
Ottawa-based e-commerce software firm Shopify joined forces with Coinbase and San Francisco- and Dublin, Ireland-headquartered Stripe to let people pay with USDC stablecoin – a crypto asset pegged to the value of the U.S. dollar – for purchases at its merchants’ online stores. Over the past few years, stablecoins like USDC have grown to over a trillion dollars in monthly payment volume, trusted by users around the globe, Shopify said. Now in early access, merchants can accept USDC from customers globally on the Base network, using their existing payment and order fulfillment flows – no integrations or new gateways required. Customers can pay with USDC on Base from hundreds of supported crypto wallets, on guest checkout and with Shop Pay. Merchants will receive their local currency by default, with no foreign transaction or exchange fees – or they can choose to claim USDC directly into their own wallet. Shopify
In a three-month trial, 20,000 civil servants in the U.K. saved an average of 26 minutes a day – or nearly two working weeks per person per year – using generative AI tools, such as Microsoft 365 Copilot, to draft reports, summarize emails and update records, according to U.K. Technology Secretary Peter Kyle. This is the equivalent of giving 1,130 people a full year back – every year – to focus on higher-value tasks, innovation or public service impact, rather than admin-based work, with the potential for this to rise significantly if used across the entire civil service, Kyle said. New Research from the Alan Turing Institute found that AI could support up to 41 percent of tasks across the public sector, offering significant time savings. Britain’s Labour government is aiming to save £45 billion (Cdn$83.5 billion) a year by automating some civil service work as well as digitizing services it currently uses paper to deliver. Govt. of the U.K.
Massachusetts Institute of Technology researchers unveiled a promising new fuel cell system that could reshape electric transportation beyond cars. Their paper “Sodium-air fuel cell for high energy density and low-cost electric power” was published in the journal Joule. Using liquid sodium metal instead of lithium-ion batteries, the system offers up to three times the energy-to-weight ratio, potentially reaching 1,700 watt-hours per kilogram. That could be revolutionary for electric aircraft, ships and trains, where weight is a major constraint. Unlike traditional batteries, the sodium fuel cell generates power through a metal-air reaction and is “refuelled” rather than recharged. A spinoff company, Propel Aero, is already working to commercialize the technology, with flight tests expected within a year. The Debrief
VC, PRIVATE INVESTMENT & ACQUISITIONS
The Saudi Investment Bank is interested in financing major federal and provincial projects anywhere in Canada between a minimum of $5 million to a maximum of $100 billion per project, according to Kelowna, B.C.-based Darryl Williams who registered this month to lobby for the Riyadh-headquartered bank. The kingdom’s state-owned AI company, Humain, is set to launch a US$10-billion venture capital fund as part of its AI ambitions. Willams’s registration indicates the bank is interested in projects in: Agriculture, Energy, Fisheries, Forestry, Health, Housing, Industry, Infrastructure, Mining, Municipalities, Natural Resources, Research and Development, Science and Technology, Telecommunications, and Transportation. Registry of Lobbyists
Toronto-based OMERS Ventures was among the investors in a US$46.5-million funding round for New York-based electronic trading and loans platform Octaura. The round was backed by continued support from Octaura’s founding investors, including Bank of America, Citi, Goldman Sachs, J.P. Morgan, Morgan Stanley, Wells Fargo and Moody’s. Octaura also welcomed six new investors: Barclays, Deutsche Bank, BNP Paribas, Apollo and Motive Partners, MassMutual Ventures, and OMERS. Octaura said the capital will support the company’s rapid growth and ability to transform how the syndicated loan and collateralized loan obligation markets trade. Octaura
Toronto-based Georgian co-led a Series E funding round that raised US$540 million at a $6-billion valuation for Cyera, an Israel-based data security company. Georgian, Greenoaks, and Lightspeed co-led the round, joined by insiders Accel, Coatue, Cyberstarts, Redpoint, Sapphire Ventures, Sequoia Capital, and Spark Capital. Cyera plans to use the funds to enhance its platform and drive enterprise adoption. Axios
TELUS Global Ventures led a US$50 million Series B funding round for Tastewise, an Israeli food and beverage intelligence platform. Participants included Disruptive AI, Peakbridge Capital, Duo Partners, and PICO Venture Partners. Tastewise’s platform uses real-time data from recipes, menus, social media and brand sources to create marketing content and product ideas. Founded in 2018, the company has 100 employees and plans to hire more in AI and data science across its global offices. Tech in Asia
Montreal-headquartered hormone monitoring technology firm Eli Health raised US$12 million in a Series A funding round to launch the world’s first instant hormone monitoring system. The round was led by BDC Capital’s Thrive Venture Fund, with participation from Muse Capital, TELUS Global Ventures, and other investors. The private beta test version of Eli Health’s instant saliva-based hormone monitor is live, with early adopters already using the Hormometer™ as part of their health routines. The company said it’s building toward a public launch later this year. Eli Health
Winnipeg-based startup Taiv secured $14.4 million in a Series A funding round to expand its targeted advertising platform for televisions in hospitality venues across North America. Denmark’s IDC Ventures led the equity portion of the round, joined by Emerging Ventures, Gaingels, and existing investors including Garage Capital, Y Combinator, FJ Labs, and RBCx.. Taiv provides a device that connects to existing TVs and cable boxes, enabling the automated delivery of content like commercials, trivia and venue-specific messaging. Offered at no cost to venues, the company earns revenue from ads and shares proceeds with participating businesses. Founders Today
Montreal-based Vessel raised $10.3 million in seed funding for an AI-driven platform to help automate some aspects of venture capital investing. The all-equity, all-primary round was co-led by Inovia Capital and San Francisco-based Afore Capital, with participation from BY Venture Partners, FJ Labs, Golden Ventures, Telegraph Hill Capital, and Four Cities Capital. Vessel’s platform seeks to alleviate the manual workflows and data accessibility issues that hinder VC success, allowing venture capitalists and limited partners to focus more on relationship-building. Startup Ecosystem Canada
Waterloo, Ont.-based ENVGO raised US$2 million in a seed funding round led by Two Small Fish Ventures with participation of pre-seed investors Garage Capital and others. ENVGO is a marine technology company that says it’s building the future of clean, intelligent watercraft. Its flagship vessel, the NV1, is a zero-emission electric hydrofoiling cruiser offering a “flight over water” experience and four times the efficiency of traditional electric boats. ENVGO said the funding will accelerate the company’s market debut of the NV1 and launch its industry partnership program, which offers a scalable, license-ready system to help traditional boat manufacturers transition to electric propulsion. Private Capital Journal
The Public Sector Pension Investment Board (PSP Investments) ended its fiscal year on March 31, 2025, with a 12.6-percent one-year net return, outperforming its one-year Reference Portfolio return by 1.5 percent. The return was led by strong performances from the infrastructure, private equity, public market equities, and credit investments portfolios. PSP Investments also outperformed its five-year and 10-year benchmarks. Net assets under management grew to $299.7 billion, a 13.2-percent increase over the previous fiscal year, primarily driven by $33.5 billion of net income. Both the PSP and the Caisse de dépôt et placement du Québec are pursuing more Canadian assets in light of U.S. President Donald Trump’s proposed plan to increase taxes on certain non-U.S. residents and entities investing in the country. Public Sector Pension Investment Board
Montreal-based professional services firm WSP Global Inc. announced agreements to acquire the entire issued and to-be-issued share capital of U.K.-based Ricardo, a transport and energy consulting firm, in a £363-million (about Cdn$670 million) deal. Operating in over 20 countries, Ricardo is home to approximately 2,700 experts based across Europe, Australia, North America, Asia, and the Middle East. WSP said the acquisition represents an excellent opportunity to accelerate its expansion in targeted high-growth areas. Groupe WSP Global Inc.
California-based semiconductor giant Qualcomm announced an agreement to acquire Toronto-founded and now U.K.-based Alphawave IP Group for £1.83 (US$2.48) per share of Alphawave, or approximately US$2.4 billion. If the deal receives regulatory approval, the firms expect it to close in the first quarter of 2026. Qualcomm said the acquisition aims to further accelerate, and provide key assets for, Qualcomm’s expansion into data centres. Alphawave, which is still run from Toronto, is a global leader in high-speed wired connectivity and compute technologies delivering IP, custom silicon, connectivity products and chiplets that drive faster, more reliable data transfer with higher performance and lower power consumption. Qualcomm
Tether Investments, the Republic of El Salvador-based investing arm of stablecoin giant Tether, acquired common shares of Vancouver-based Elemental Altus Royalties Corp., increasing its stake in the gold-focused royalty company to 34 percent in a $122-million deal. Tether Investments said the acquisition is part of its growing commitment to tangible assets and precious metals in line with the company’s broader vision to enhance the transparency, utility and accessibility of digital assets backed by real-world value. Tether Investments purchased the shares from Luxembourg fund La Mancha Investments and has an option to eventually increase its stake to 47.7 per cent by purchasing additional shares from Abu Dhabi’s Alpha 1. Tether Investments
Kitchener-Waterloo, Ont.-based Nicoya Lifesciences Inc., which provides advanced instruments and biologics characterization tools for drug discovery and development, acquired Applied Photophysics, a U.K.-based provider of biophysical characterization instrumentation. Financial terms weren’t disclosed. The transaction was financed using a roughly equal combination of equity and debt from Nicoya’s existing investors, led by Graphite Ventures and debt provider SWK Holdings Corporation. Garage Capital, MaRS IAF, Laurier Startup Fund, ArchAngel. GTAN also participated, and Agilent Technologies, WhiteCap Venture Partners, BDC Capital’s Growth & Transition Capital Team, and Export Development Canada supported, among others. Nicoya said the acquisition is expected to double the company’s revenue, triple its existing customer base and provide a foundation for substantial profitability with continued organic growth projected at 25 percent. BusinessWire
REPORTS & POLICIES
Canada requires $30 billion in investment and 30 new mines over the next 15 years to realize its critical minerals potential: Canadian Climate Institute
Canada needs new investment of $30 billion over the next 15 years and to open 30 new mines over that period to fully meet domestic critical minerals potential, according to a new report by the Canadian Climate Institute.
To meet the growth in global demand, investment in Canadian critical minerals would have to increase to $65 billion in that time frame.
One of the biggest factors holding back this investment is high volatility in the market prices for critical minerals. Investors face substantial financial risks from big price swings in the market.
“One way to reduce these risks and accelerate investment is for governments to share the financial risk of projects through agreements like equity investments, contracts for difference, or offtake agreements,” says the report, Critical Path: Securing Canada’s place in the global critical minerals race.
The most direct way for governments to share the financial risks of a mine is to take equity shares in the project, the report says. “As equity holders, governments can provide the capital that private markets won’t, sharing both the downside risks and the upside potential of projects in the face of long payback periods.”
Canadian reserves of six priority critical minerals – copper, nickel, lithium, graphite, cobalt and rare earth elements – far exceed current production levels and offer a multi-billion dollar economic opportunity in the global transition to clean technologies, according to the report.
Industry worldwide will need these six critical minerals to manufacture solar photovoltaic modules, wind turbines, electric vehicles and charging stations, and batteries of all shapes and sizes.
Global demand for these six priority critical minerals is projected to almost double by 2040, with annual demand for all critical minerals reaching a value of $770 billion by 2040.
Yet current investment in Canada’s upstream mining of critical minerals is not keeping pace with both domestic and global demand growth, the report says.
Canada is in danger of losing out on billions of dollars, as well as the opportunity to shore up energy security, while navigating a volatile and competitive trade environment, the report warns.
“If companies are unable to attract the investment required to increase critical mineral production to meet domestic demand alone, Canada risks leaving $12 billion on the table annually by 2040 – and that’s before considering the sizable export opportunities.”
The continued threat of punitive tariffs from the current U.S. administration emphasizes the strategic value of bringing Canadian critical minerals to global markets – and quickly, the report says.
Besides taking equity shares in projects, another way to share the financial risk is contracts-for-difference, contracts designed to protect investors from price volatility by establishing a negotiated settlement price.
When market prices fall below the defined settlement price, the government pays the difference to the producer. When prices rise above it, the producer pays the surplus back to the government.
Offtake agreements can significantly reduce demand- and price-risks for mines and help projects secure financing, the report says.
An offtake agreement is a contract between a producer, such as a mining company, and a government, in which the government agrees to purchase all or a portion of the producer’s output at a predetermined price or term.
Streamlining projects and their development timelines can be achieved while maintaining strong environmental regulations and Indigenous consultation, the report says.
Research shows that doing so increases the likelihood of securing community support and project approval, while helping to prevent further delays down the road.
Respecting Indigenous self-determination and enabling partnerships can improve critical mineral proposals to the benefit of the communities most affected, the report notes. It can also de-risk investments.
The principle of free, prior and informed consent is essential to the decision-making process for critical mineral projects, ensures Indigenous communities are able to participate in the economic opportunities through all phases of a project, and can manage the related risks in line with their worldviews, cultures and values.
Environmental risks from new mining projects can also pose high risks for investors, the report says. Inadequate storage of mining tailings and abandoned mines can expose local communities to increased health and safety risks, and recent mining disasters have impacted trust in the industry and government regulatory systems.
Improving environmental protections and aligning regulations with leading standards can build public confidence and further de-risk projects for both communities and investors, according to the report.
The report’s recommendations are:
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Canada’s mining industry needs 21st century data to guide policy and compete internationally
Canada’s mining industry needs 21st century data to determine how much of the country’s mineral industry is value-added to guide policy, according to a commentary from the Centre for Canadian Innovation and Competitiveness.
In 1998, Natural Resources Canada (NRCan) reported that just 10 percent of Canada’s mineral industry could be considered value-added, said the report by Meghan Ostertag, a research assistant for economic policy at the Washington, D.C.-based Information Technology and Innovation Foundation, with which the Canadian centre is affiliated.
By value-added, only a fraction of the minerals mined in Canada were processed domestically into high-value products, thereby contributing more meaningfully to the Canadian economy.
“The other 90 percent? Exported in raw form, allowing other nations to profit from Canada’s resources.”
At the time, NRCan estimated that increasing the ratio of minerals processed domestically by just five to 10 percent could raise domestic production by $100 million, or about $180 million today.
If this were 1998, Ostertag said, “we could argue that the Canadian government should invest in expanding its value-added processing capabilities, such as iron fortification, steel casting, and mineral processing, all of which would have generated greater revenue for Canada.”
But it isn’t 1998. It’s been 27 years, and we still don’t know what, if anything, has changed, she said.
NRCan has yet to publish an updated, comprehensive estimate of how much of Canada's mineral output is processed domestically, leaving policymakers in the dark on a crucial sector of the economy, Ostertag said.
“Without a clear understanding of how much of Canada’s mining output is value-added today, officials cannot make informed policy decisions to strengthen the sector.”
Additionally, in a global trade environment increasingly shaped by protectionism and Trump tariffs, it is more important than ever for Canada to invest in its domestic production capabilities, she said.
But knowing where to invest is critical. Every dollar Canada invests in mining is a dollar not invested in automobiles, shipbuilding or advanced manufacturing – so policymakers must be well informed when drafting key industrial policy.
“Canada can’t compete in the 21st-century economy using 20th-century data,” Ostertag said. “Natural Resources Canada must update its value-added analysis to clarify the current state of the Canadian mining industry and guide sound industrial policymaking.” Centre for Canadian Innovation and Competitiveness
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Scaling up technology firms in value-added resources can boost productivity and reduce carbon emissions: Transition Accelerator
Adding value to Canada’s natural resources by scaling technology firms in value-added natural resources can help address Canada’s productivity crisis, according to a new report by the Transition Accelerator.
Strategic industrial policy can help scale innovative firms into leaders in low-carbon technologies – such as mass timber, sustainable aviation fuel and EV batteries – opening new markets for Canadian wood, biomass and critical minerals, says the report by Travis Southin, future economy lead at the Transition Accelerator.
“This builds economic resiliency, especially in the face of U.S. threats to Canadian economic sovereignty,” he says.
This report highlights the importance of analyzing Canada’s productivity crisis through the lens of the real economy and differences between sectors.
This kind of perspective shows that aggregate numbers can be misleading and can preclude room for discussion of sector-specific policy changes that should augment the more general, across-the-board solutions typically put forward in discussions on how to boost productivity (such as tax incentives, reducing red tape, and increasing competition and interprovincial trade).
Clean technology firms outperform in R&D spending and export growth – key factors for productivity growth, according to the report.
Three key opportunity areas are:
Scaling domestic champions through industrial policy will boost productivity, increase R&D, drive exports and help the Canadian economy decarbonize, the report says.
Core industrial policy actions include:
Industrial policy should support innovation in the extraction and value-added processing and manufacturing stages of clean technology value chains, the report says.
This should reinforce backward linkages (such as mining machinery and techniques) and forward linkages (such as processing and manufacturing) between resource extraction, manufacturing and end use.
Going forward, economic modelling is needed to assess in greater detail what the potential upside benefits could be for investment, productivity and macroeconomic performance from targeted industrial policy initiatives in areas such as EVs, batteries and critical minerals; mass timber and modularized construction; and sustainable aviation fuel, the report notes.
“Investing in clean technologies can help address this crisis and support Canada’s economic independence,” Southin says.
“Firms scaling tech like mass timber, sustainable aviation fuels and next-gen EV batteries aren’t merely good ideas; they’re our best shot at improving our productivity and competitiveness.” Transition Accelerator
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AI will open the door to the labour market rather than lead to mass unemployment: Fraser Institute study
As Canada’s labour force shrinks due to aging and slowing rates of immigration, artificial intelligence can help by increasing the number of available workers and improving worker productivity, according to a new study from the Fraser Institute.
“While there’s a common perception that AI will eventually lead to mass unemployment, it actually opens the door to the labour market for people who may have been on the outside looking in,” said Morley Gunderson, professor emeritus of economics at the University of Toronto and author of Can AI Mitigate Our Labour Force Problems?
For example, AI can facilitate more effective job-matching between employers and job seekers including retirees who want to return to work, students who want part-time jobs, and new immigrants, the study says.
AI can also improve employment prospects for people with disabilities by equipping employees with assistive technologies (screen readers, speech recognition software, etc.) and helping make driverless vehicles, “smart” wheelchairs and other AI-powered resources more widely available.
At the same time, AI can help increase productivity growth, which has stagnated in Canada, according to the study.
For example, AI can help connect small and dispersed geographical markets with larger commercial centres, facilitate trade (within Canada and internationally), help small firms grow, and increase the ability of scientists and engineers to develop innovations that fuel productivity growth.
AI is the latest in a long series of technological innovations including the printing press, the steam engine, electricity, light bulbs, telephones, airplanes, personal computers, smartphones, and the internet, Gunderson’s study notes.
“All have led to disruptions that have ultimately fostered economic growth and improvements in standards of living,” it says.
“Rather than unduly fearing AI, Canadians should welcome the promise of AI to increase our ability to produce goods and services and improve our living standards,” said Steven Globerman, senior fellow at the Fraser Institute. Fraser Institute
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Use of AI by Canadian businesses increases but more than 41 percent of businesses still consider AI “not relevant:” Statistics Canada
In the second quarter of 2025, 12.2 percent of Canadian businesses reported having used artificial intelligence to produce goods or deliver services over the 12 months preceding the survey, according to a report by Statistics Canada.
This was an increase from the 6.1 percent reported in the second quarter of 2024, “highlighting the growing presence of AI in Canadian business operations,” StatsCan said.
Among businesses that reported using AI in producing goods or delivering services over the last 12 months, those in information and cultural industries (35.6 percent); professional, scientific and technical services (31.7 percent); and finance and insurance (30.6 percent) were most likely to do so.
These industries also led in AI adoption in the second quarter of 2024, reporting 20.9 percent, 13.7 percent, and 10.9 percent respectively.
In the second quarter of 2025, AI use was lowest in accommodation and food services (1.5 percent), followed by agriculture, forestry, fishing and hunting (1.8 percent) and transportation and warehousing (also 1.8 percent).
As AI becomes further integrated into business operations, certain applications are emerging to be more widely used than others.
Among businesses that reported having used AI over the last 12 months, the most adopted application was text analytics (35.7 percent). This type of application may be used to process insights from data sources, such as customer reviews, emails or survey responses, to support business decisions and improve services.
Other leading applications were data analytics (26.4 percent) and virtual agents or chatbots (24.8 percent).
Some applications saw notable changes in use over the past year. Marketing automation was reported by nearly one-quarter (23.1 percent) of businesses in the second quarter of 2025, compared with 15.2 percent a year ago.
Recommendation systems using AI increased from 12.3 percent in the second quarter of 2024 to 14 percent in the second quarter of 2025.
By contrast, in the second quarter of 2025 the use of natural language processing and image recognition declined compared with the second quarter of 2024, from 28.9 percent to 23.1 percent and from 21.8 percent to 11.4 percent, respectively.
In the second quarter of 2025, 8.3 percent of businesses in Canada reported that investment in AI was very important to their operations, while 20.1 percent considered it somewhat important.
In contrast, many businesses in Canada do not currently consider AI investment to be required for their operations, with 41.2 percent reporting it to be “not relevant.”
Industries with higher reported use of AI were more likely to consider AI investment as operationally important.
Over one-fifth (21.5 percent) of businesses in professional, scientific and technical services reported that investment in AI was very important, followed by 20.8 percent of businesses in information and cultural industries and 17 percent in finance and insurance.
The integration of AI into business operations continues to prompt questions about its effects on employment and work task reductions.
In the second quarter of 2025, of the businesses that reported using AI over the last 12 months, the vast majority (89.4 percent) reported no change to their employment levels after implementation.
This was similar to results from a year earlier, when 84.9 percent of businesses that used AI in the second quarter of 2024 also reported no change to employment levels.
Meanwhile, the proportion of businesses that reported an increase in employment levels due to AI use declined from 8.8 percent in the second quarter of 2024 to 4.3 percent in 2025.
When asked to what extent AI reduced tasks previously performed by employees, most businesses reported minimal impacts.
Nearly half (47.2 percent) of businesses that reported using AI over the last 12 months indicated that tasks were reduced to a small extent, up from 44.1 percent in the second quarter of 2024.
As more businesses adopt AI, adjustments to staffing and workflows are a common aspect of the implementation process.
Among businesses that used AI in producing goods or delivering services over the last 12 months, the most reported change was developing new workflows, reported by 40.1 percent of businesses, compared to 35.2 percent in the second quarter of 2024.
In comparison, training current staff to use AI was reported by 38.9 percent of businesses in the second quarter of 2025, a proportion that remained relatively unchanged from 2024 (38.5 percent).
Other changes reported by businesses after implementing AI included purchasing cloud services or cloud storage (25.7 percent), changing data collection or data management practices (18.5 percent), and working with vendors or consulting services to install or integrate AI (18.2 percent).
As AI technologies continue to evolve, some businesses are looking ahead to how they might integrate them into their operations.
Businesses were asked whether they plan to adopt software or hardware using AI over the next 12 months. In the second quarter of 2025, nearly one in five (17.9 percent) businesses reported plans to adopt AI software, while six percent reported plans to adopt AI hardware.
This is an increase from the 11.5 percent of businesses that reported plans to adopt AI software and five percent that reported plans to adopt AI hardware in the second quarter of 2024.
Planned AI software adoption in the second quarter of 2025 was most reported in information and cultural industries (37.8 percent); professional, scientific and technical services (37.7 percent); and finance and insurance (27.4 percent).
For AI hardware, 13.2 percent of businesses in finance and insurance reported plans to adopt, followed by 11.3 percent in manufacturing, and 8.9 percent in arts, entertainment and recreation. Statistics Canada
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Canada’s SMEs continue to face challenges in the labour market: Canadian Federation of Independent Business
Canada’s small and-medium-sized businesses continue to face challenges in the labour market, according to a new report by the Canadian Federation of Independent Business (CFIB).
While vacancy rates have eased, many companies are still struggling not just to find workers, but to find candidates with the right skills, expectations, and qualifications.
“Over four in 10 small firms say a shortage of skilled labour is limiting their ability to increase sales or production,” said Marvin Cruz, CFIB’s director of research.
“Many are struggling not just to find workers, but to find candidates with the right skills, expectations, and qualifications,” he said.
CFIB’s analysis explores the roots of these challenges and highlights policy actions that can help unlock talent, strengthen the workforce and support long-term growth.
Over half (53 percent) of SMEs still cite labour shortages as a major barrier to growth and, critically, 44 percent report that a shortage of skilled labour is directly limiting their ability to increase sales or production.
A full 69 percent of SMEs say the primary obstacle to recruiting skilled employees is a shortage of qualified candidates within their sectors.
But the issue runs deeper: nearly 57 percent of small businesses report a disconnect between what candidates expect in terms of pay or benefits and what the business is offering.
Compounding these difficulties, 47 percent of SMEs identify a mismatch between the skills applicants bring and the actual requirements of the role.
Even when talent exists elsewhere in Canada, regulatory hurdles – like province-specific licensing and certification rules – limit worker mobility and make it harder for businesses to access the talent they need, the report says.
“Holding a licence in one province or territory does not automatically grant the right to work in another,” the report notes.
For many occupations, workers must obtain certification and licensing specific to the province or territory in which they intend to work – often resulting in added costs, wait times, testing and paperwork.
Nine in 10 small businesses agree that a professional license or certification obtained in one jurisdiction should be automatically recognized in all others.
Only 17 percent of businesses rate their workforce as “excellent,” while 40 percent rate it “fair” or “poor,” CFIB said.
Employers report frequent issues with productivity (69 percent), lack of motivation (66 percent), and weak problem-solving skills (64 percent).
“Left unaddressed, these barriers don’t just affect individual firms – they drag on productivity, slow regional development, and undermine Canada’s economic competitiveness,” CFIB said.
Labour mobility reforms offer an actionable pathway to improve workforce allocation and reduce hiring issues, the report says.
However, to maximize impact, these reforms must be coupled with broader efforts to elevate workforce quality. “Only then can SMEs thrive and drive Canada’s broader economic growth.”
To this end, CFIB recommends the following actions to help enhance labour mobility and quality:
Labour mobility:
Labour quality:
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AI, the quality of research, cancer research and research software dominate the 25 most-cited scientific papers of the 21st century
The most-cited papers of the 21st century aren’t about big scientific breakthroughs such as the first mRNA vaccines, CRISPR-based gene-editing techniques, the discovery of the Higgs boson, or the first measurements of gravitational waves.
Instead, an analysis by the journal Nature’s news team of the 25 most-cited papers published in the 21st century found the most citations report developments in artificial intelligence (AI); approaches to improve the quality of research or systematic reviews; cancer statistics; and research software.
However, a pioneering 2004 paper on experiments with graphene – work that won its authors the Nobel Prize in Physics in 2010 – is also among the 21st century’s most-cited papers.
Citations – the means by which authors acknowledge previous sources in the literature – are one measure of a paper’s influence.
But the most highly cited papers generally aren’t the most famous scientific discoveries, Nature says. Rather, these works tend to describe scientific methods or software, the workhorses on which scientists depend.
Nature selected five databases for its analysis and took the median rankings across them. The databases cover tens of millions of papers published in the 21st century.
By this methodology, the top-cited paper of the 21st century is a 2016 report by researchers at tech giant Microsoft about “deep residual learning” networks, or ResNets.
These are a type of artificial neural network –the neural-inspired algorithms that underpin deep learning and the AI advances that followed.
The paper describes a way to train networks that have about 150 layers, roughly five times more than researchers were used to.
The ResNet architecture solved the problem of signals dissipating when they travelled through many layers. The work was first published as a preprint in late 2015, when Microsoft researchers announced that they had aced an image-recognition competition using the approach.
The concept behind ResNets was one of the factors leading to AI tools that could play board games (AlphaGo), predict protein structure (AlphaFold) and eventually model language (ChatGPT).
However, Microsoft’s paper isn’t universally held to be the highest-cited. According to the search engine Google Scholar, the creators of which sent a top-cited list to Nature, Microsoft’s paper is second, with 254,000 citations.
And according to the Web of Science, a private database owned by multinational firm Clarivate that indexes a more limited selection of journals, Microsoft’s paper is third, with just over 100,000 citations.
In the five databases that Nature selected, Microsoft’s publication was highest-cited in two, second in two others and third in one – giving it the top median rank across all five.
The Microsoft paper isn’t just a hit among papers published this century. It also appears in the top 10 of all-time citations, according to a separate analysis conducted for Nature.
Comparing citation counts is fraught with unfairness and inconsistencies, Nature says. For instance, because the Microsoft work was published a decade ago, it has had more time than younger papers to accrue citations. It’s also in a field – computer science – that is seeing high volumes of research.
AI papers come with natural advantages in the citation stakes, notes Geoffrey Hinton, a computer scientist at the University of Toronto who won a share of the Nobel Prize in Physics last year for his work in AI.
Papers in this area are relevant to a huge number of fields, and the 21st century has seen extremely rapid progress and a large volume of papers, Hinton says.
The second-most-cited paper of the 21st century did not end up on the list by coincidence: it was written explicitly to give researchers something to cite.
About 25 years ago, pharmaceutical scientist Thomas Schmittgen submitted a paper that included data from a technique called quantitative PCR, which allows researchers to quantify the amount of DNA in a sample. To analyze his data, Schmittgen used equations found in a technical manual.
“One of the reviewers came back and said, ‘You can’t cite a user manual in a paper,’” he says. So Schmittgen, now at the University of Florida in Gainesville, contacted the creator of the equations and together they published a paper that could be cited.
And cited it was: more than 162,000 times, according to the Web of Science. That is enough to send Schmittgen’s paper into the top 10 of all-time-cited research.
Schmittgen’s paper is popular because its formulae provided a simple way for biologists to calculate changes in gene activity in response to different conditions, such as before and after treatment with a drug.
The other top 10 most cited papers of the 21st century include: three on cancer research; the fifth edition of the Diagnostic and Statistical Manual of Mental Disorders; and one on gender and sexuality. Nature
THE GRAPEVINE – News about people, institutions and communities
Prime Minister Mark Carney named Michael Sabia as clerk of the Privy Council and secretary to the cabinet, effective July 7, 2025. Sabia will resign as CEO of Hydro-Québec. The clerk is the top federal public servant and the most senior non-political advisor to the prime minister and cabinet. Sabia brings over three decades of expertise across the public and private sectors, including as president and CEO of Hydro-Québec, president and CEO of the Caisse de dépôt et placement du Québec, Canada’s deputy minister of finance, and director of the Munk School of Global Affairs & Public Policy. Sabia also held senior roles at Bell Canada Enterprises as president and CEO, at Canadian National Railway, and in the Privy Council Office. Last week, Sabia, speaking at The Globe and Mail’s Intersect 2025 conference, criticized Canada’s “ambition deficit,” excessive federal regulation, lack of capital investment and poor relations with Indigenous groups. He’ll succeed John Hannaford, a former diplomat and deputy minister of trade and natural resources, who has been in the job less than two years. Prime Minister of Canada
Palette Skills announced that Mark Beckles was named CEO, effective July 2, 2025. Palette Skills said Beckles’s appointment represents a reinforcement of the organization’s strategic direction, which includes delivering the Upskilling for Industry Initiative on behalf of Innovation, Science and Economic Development Canada and working with federal and provincial partners to expand Palette Skills broader upskilling efforts across the country. Beckles brings more than 25 years of senior leadership experience in financial services and the non-profit sector. As vice-president, social impact & innovation at RBC, he led the $400-million Future Launch initiative in partnership with more than 500 organizations to equip 5.5 million young Canadians for the future of work. He also spearheaded RBC Upskill, a national tool that helps individuals align their skills with emerging careers. Beckles succeeds interim CEO Ann Buller, who will remain a board member. Palette Skills
Daryell Nowlan, vice-president of policy, programs and communications at the Atlantic Canada Opportunities Agency is retiring in mid-July after 32 years in the public service. “What started as a ‘five-year experiment’ turned into an incredibly rewarding career filled with inspiring industry leaders, wonderful colleagues, and very rewarding work,” he said in a LinkedIn post. Nowland grew up in Summerside, P.E.I. and has spent his life working in Atlantic Canada. Daryell Nowlan’s LinkedIn post
Seasoned investor and former Anges Québec CEO Geneviève Tanguay will be joining Panache Ventures, a Montreal-based early stage venture capital firm, as a partner. Tanguay told BetaKit she will focus on Eastern Canada while supporting the team nationally. She joins Panache partners Patrick Lor in Calgary and Prashant Matta in Toronto. Tanguay led angel network Anges Québec as CEO for four years, up until her departure in October 2024, which the organization said aligned with a year-long succession plan. She spent the majority of her career at Fonds de solidarité FTQ, a development capital fund for Québec citizens, where she was the director of the fund’s private equity and venture capital investment portfolio for 12 years. BetaKit
The University of British Columbia (UBC) launched a new AI and Health Network – supported by a $22.5-million gift from the Gordon B. Shrum Charitable Fund – focused on using AI to improve patient care and the health system. The network will bring together researchers and clinicians to address the challenges faced by the Canadian and B.C. health systems and patients. It will also launch a dedicated AI and Health Fellows and Scholars Program and introduce expanded course offerings and micro-credentials to prepare health professionals to work with AI. The network is co-led by Dr. Raymond Ng, professor of computer science at UBC, and Dr. Anita Palepu, professor and head of UBC’s department of medicine. The network is launching with a suite of research projects that are already underway and demonstrating the transformative potential of AI. In one flagship initiative, a UBC research team led by Ng is working with colleagues at BC Cancer and the B.C. Ministry of Health to develop an AI-powered system that can expedite triaging of high-risk breast cancer patients for urgent follow-up and treatment. UBC
The University of Saskatchewan’s Centre (USask) for Forensic Behavioural Science and Justice Studies (CFBSJS) celebrated a memorandum of agreement with Correction Services Canada that will provide a total of $2 million in investment over the next 10 years. The agreement will provide support for graduate student awards, summer internships and post-doctoral fellowships. Additionally, the CFBSJS entered into a collaborative research agreement with the Government of Saskatchewan. This agreement extends a strong partnership that began many years ago with the Ministry of Corrections, Policing and Public Safety and will provide CFBSJS with a total of $1 million over the next five years. This investment in the centre will help support specific research projects that focus on topics important to the province, which will be identified collaboratively between USask and the ministry. USask
A new partnership between Western University, MFC Training, and the London International Airport will create a new opportunity for Western aviation students to earn their Integrated Airline Transport Pilot licences. First and second-year students in Western’s Commercial Aviation Management program will complete MFC Training’s specialized education, which includes complex cockpit environments and advanced simulator training. Its Transport Canada-certified curriculum includes more than 500 hours of ground school and 250 hours of flight and simulator training. The London International Airport marks the first location in Ontario for MFC Training, owned by the PAL Group including PAL Aerospace and PAL Airlines, one of the largest independent airlines in Eastern Canada and Quebec. Western University
Canadian Nuclear Laboratories (CNL) and Atomic Energy of Canada Limited signed a memorandum of understanding with the University Network of Excellence in Nuclear Engineering (UNENE) to pursue the development of the Canadian Nuclear Learning Centre. The vision of the centre is to coordinate education, training, knowledge management and workforce development across Canada’s growing nuclear sector. The three organizations will undertake collaborative work to establish the centre. These include expanding UNENE programming and activities to incorporate use of the world-class facilities and expertise at Chalk River Laboratories and other CNL sites, while exploring both the development of micro-credential offerings and the opportunity for regional hubs via academic and other national laboratory partners. Central to the collaboration is advancing nuclear education to support workforce development priorities. An initial plan for the centre is expected to be finalized this fall. CNL
Canadian Nuclear Laboratories (CNL) and the University of Ottawa (uOttawa) announced a new partnership to advance knowledge, education, research and innovation in low-dose radiation (LDR) exposure health effects. The partnership builds on CNL’s global leadership in LDR research with the establishment of a CNL-led LDR innovation hub. It will also serve to increase capabilities, education and training opportunities for graduate students and early career researchers. The partnership will also extend uOttawa researchers’ access to Atomic Energy of Canada Limited’s world-class facilities at Chalk River Laboratories, including the unique Biological Research Facility and LDR Tissue Bank, and establishes a CNL satellite laboratory within uOttawa’s new Advanced Medical Research Centre – set to open in 2026. CNL will be contributing towards the acquisition of a mass spectrometer, which will be installed in the Metabolomics Core Facility at uOttawa. This strategic investment will enable leading-edge single-cell metabolomics and spatial metabolomics, a rapidly advancing field with transformative potential in biomedical research. This will be the only equipment of its kind in eastern Canada, offering unique capabilities for high-resolution chemical imaging at the cellular level. CNL
Algoma University (AlgomaU) in Sault Ste. Marie, Ont. marked the first faculty naming in its history with the unveiling of the Cameron Faculty of Science. The faculty was named in honour of Dr. J. MacBain Cameron and the Cameron family, who have supported the university in the past. The naming of the Cameron Faculty of Science stands as a tribute to the Cameron family’s vision and belief in the power of education to transform lives and uplift communities across Northern Ontario and beyond – “a powerful testament to the role of philanthropy in shaping the future of postsecondary education in the region.” AlgomaU
HEC Montréal released a set of guidelines to support students, faculty and staff in the responsible use of generative artificial intelligence. The guidelines are intended to encourage thoughtful, ethical use of the technology, rather than to restrict it. The document outlines core principles related to privacy and data protection, copyright and intellectual property, transparency and equity of access. The university also created separate guidelines for research settings, which emphasize transparency in disclosing GenAI use and accountability for the quality and compliance of generated content. HEC Montréal is also providing its entire community with access to Microsoft Copilot and has designated teams who will support community members with GenAI-related questions and tools. HEC Montréal
Western University’s Centre for Teaching and Learning introduced a free, open initiative to encourage conversations about AI. The Generative AI Challenge is an eight-week project that uses exercises and mini-lessons to help participants expand their knowledge of AI. Each online mini-lesson is created by a Western faculty, staff, or student “challenger” with the goal of empowering participants to have informed discussions about AI. The first four posts on the website registered about 3,000 views. Participants from more than 40 colleges and universities across the world, as far away as Mauritius and Australia, have signed up to receive the weekly challenges by email. Western University
Holland College in Charlottetown, P.E.I. partnered with the Forum for International Trade Training (FITT) to help Prince Edward Island’s businesses and entrepreneurs navigate international export development. As a FITTskills Delivery Partner, the college will offer six industry-recognized courses that will count toward a FITT Certificate in International Trade or a FITT Diploma in International Trade. Each course will be delivered through two days of in-person instruction, followed by a 30-day self-study period ending with the online FITT assessment. Learners who complete the diploma can also use it as a pathway to the Certified International Trade Professional designation. As part of the provincial strategy to address global trade uncertainty, the Government of Prince Edward Island is contributing financial support to help offset costs for participants. Holland College
Fanshawe College in London, Ont. eliminated 40 administrative positions through downsizing, early retirements and unfilled vacant positions. In an email to staff, Peter Devlin, president of Fanshawe, said each affected individual has been provided with resources to assist their transition. The news follows a May 8 town hall meeting in which Devlin informed staff of the college's need to cut its workforce by about 35 percent – about 400 positions in total – with the college facing a $72-million deficit in the coming two years. Devlin said the reductions are necessary as the college struggles through what he called under-funding by the province and a federal cap on entry visas for international students, who pay higher tuition than domestic students. The next phase of downsizing will reportedly focus on voluntary exit packages. CBC News
The board of governors for Sault College in Sault Ste. Marie, Ont. approved a budget with a $5.6-million deficit for the 2025-26 academic year. It's the second year in a row the college has run a deficit. David Orazietti, president of Sault College, said about 20 programs have been discontinued or suspended in the past year-and-a-half. Among them, he said, are programs tailored to international students who pay much higher tuition, such as supply chain management and project management. Sault College is expecting an almost 40-percent decrease in enrolment for the coming academic year. The number of students is expected to drop from 11,215 to 6,830, in large part due to the closure of two campuses the college operated with a private partner in southern Ontario that catered to international students. The college plans to focus on high-demand programs such as health, skilled trades, aviation and community studies. CBC News
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Organizations: | Office of the Auditor General of Canada |
People: | Karen Hogan |
Topics: | federal government procurement |