Canada has entered a defining phase of AI adoption, one where innovation is moving rapidly from experimentation to real-world application across every sector. This rapid and broad diffusion – or adoption – of a general purpose technology like AI enhances productivity and transforms economies, offering the greatest benefits. From how we work and learn to how we deliver public services, artificial intelligence is reshaping daily life and unlocking the AI economic opportunity for Canada.
But adoption doesn’t happen on its own. It requires the right foundation, one built on trust, access and readiness. At the 2025 B7 Summit in Ottawa, G7 business leaders emphasized that countries focused on enabling broad, responsible adoption, not just chasing the next breakthrough, will be the ones to unlock economic growth and long-term competitiveness.
Broadening Adoption of AI: The Key to Economic Growth
Success in the AI economy will not be defined by innovation alone, but by how effectively that innovation reaches people and organizations. As history has shown with other general-purpose technologies, countries that prioritize widespread innovation and diffusion, not just cutting-edge development, reap the greatest long-term benefits.
That’s why Microsoft’s work in Canada goes beyond building AI tools. We’re focused on strengthening the foundation for adoption—delivering trusted technology, scalable infrastructure, and training Canadians to ensure AI is accessible and practical for businesses of every size, in every region.
A recent report from Microsoft Canada, conducted by Accenture, estimates that generative AI could contribute $180 billion in productivity gains annually to the Canadian economy by 2030. Realizing that potential depends on promoting broad AI adoption across every sector of the economy. Encouragingly, we’re already seeing meaningful progress across the country.
In Alberta, a collaboration between AltaML, Microsoft, and Alberta Wildfire is helping emergency officials predict wildfire risk using AI models that analyze climate patterns, emissions, and historical data. As wildfire seasons become longer and more dangerous, this type of innovation is critical to saving lives and resources. And in Toronto, Hero AI’s platform has a use case deployed at The Hospital for Sick Children, leveraging AI modeling and decision logic to assess whether patients who come into the emergency department with mental health crises need to be consulted by psychiatry—reducing emergency room wait times for this consultation by 55 percent, adding 200 hours of room capacity in just six months and getting care delivered faster. Ottawa’s Contextere has created what it calls ‘Blue Collar AI’, putting AI solutions in the hands of frontline workers in fields such as aerospace, defense, maritime, and manufacturing, bridging the gap between complex, siloed data systems and workers who need immediate, relevant information to get the job done safely and right the first time.
These aren’t just technological wins; they are real-world examples of what AI adoption looks like in action.
Skills Are the Bridge to Widespread Adoption and Innovation
Widespread adoption requires more than tools and infrastructure—it requires people trained to take advantage of all that AI can offer. That’s why skills development is foundational to Canada’s success in the AI economy. When people understand how AI works, and how to leverage AI in their daily work – across industries and within both the public and private sector – adoption rates will rise, allowing for increased productivity and broader participation in innovation.
At Microsoft Canada, we are committed to help close that readiness gap. One of our most impactful efforts has been our partnership with the Institute of Public Administration of Canada (IPAC) and KPMG to deliver Navigating AI: A Practical Guide for Public Servants. This free national training program has already helped skill nearly 20,000 public servants, equipping leaders across the public sector to navigate and use AI with confidence.
An AI-ready Canada is one where individuals are empowered to lead—whether in classrooms, boardrooms, city halls, or research labs. Skills are what turn aspiration into capability.
Governance as a Catalyst for Responsible Adoption
Equipped with the skills to engage with AI, Canadians also need a policy environment that enables innovation to scale responsibly. That’s where smart, values-based governance comes in—not as a barrier to progress, but as an accelerator.
Clear and consistent governance builds the trust needed for organizations to adopt AI at scale. When regulations are predictable, interoperable, and grounded in democratic principles, they reduce uncertainty for businesses, especially small and medium-sized enterprises, and give the public confidence that AI is being used ethically and safely. By focusing on safety and security, Canada is helping shape a global framework that encourages innovation while safeguarding public trust.
At Microsoft, we believe strongly in a dual responsibility model: the private sector must develop and deploy AI responsibly, while governments must provide the clear policy frameworks that foster responsible innovation. Our Responsible AI Standard reflects this commitment, embedding principles like fairness, transparency, safety, and accountability into every technology we build and every partnership we form.
Good governance is what transforms experimentation into adoption, and adoption into impact.
Canada’s Moment to Lead
Canada has every advantage to lead in AI: trusted institutions, strong research and business ecosystems, and a growing commitment to responsible AI leadership.
At Microsoft, we’re proud to support this journey, and are collaborating with government, civil society, and the private sector to ensure AI delivers broad, lasting value. We’ve seen firsthand that when governance is aligned, people are empowered, and adoption is enabled, innovation follows.
This is Canada’s moment. By building on our values, investing in people, and advancing inclusive, responsible and widespread adoption, we can turn today’s momentum into long-term opportunity—for all Canadians.
