Sovereign AI: Shaping Canada's Next Digital Chapter
Canada’s heavy reliance on U.S.-controlled cloud providers, AI models, and semiconductor technology poses growing economic and national security risks as artificial intelligence becomes central to the digital economy, says a new RBC report. It argues that ongoing CUSMA negotiations and evolving U.S. trade policies could limit Canada’s ability to implement data sovereignty measures, prompting Ottawa to invest in domestic AI infrastructure through its recently launched national AI strategy. Canadian businesses and governments should strengthen sovereign AI capabilities, develop domestic talent and infrastructure and prepare for regulatory and trade uncertainties affecting key sectors such as finance, healthcare, defence, and critical infrastructure as a result.