The price of AI in Canada
This was imported from LinkedIn
When the government does not fully consult with the private sector on policies like the Artificial Intelligence and Data Act (AIDA), it becomes a tax, and Canada falls behind.
On Tuesday, I was fortunate enough to attend a UBC AI Safety x AIGS Canada - AI Governance & Safety event while ICML was in town, where Wyatt Tessari L'Allié shared some insightful perspectives on regulation. For AIGS's full thought, check out their white paper.
The sentiment I heard:
Regulatory risk discourages investors and founders alike. It turns Canada into a secondary market to expand into rather than a place to build from.
AI startups don't need land, pipelines, or mines. But they do need regulatory clarity, speed, and economic incentives. Even small frictions in regulation can flip the profit equation and stall world-class ventures before they scale.
Canada produces exceptional talent. But without the right policy environment, that talent is increasingly exported to southern ecosystems that are easier to build in.
Unfortunately, VC investing data backs this up.
PitchBook forecasts "Canada's share of North American AUM to fall to about 1% of the total" despite the "38% growth of North American VC AUM over the next five years."
Hopefully, Canada can apply its lessons learned from regulatory inefficiencies in other sectors to AI regulation.