Canada is in danger of hurting the economy unless there’s a clear plan on how AI should be used, regulated and promoted, expert says
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“We need to have a North Star,” Steven Karan, head of Data & Analytics at Capgemini Canada Inc., said. “We need a long-term vision, and the vision needs to be supported by priorities.”
He said he hopes the government can set forth a tangible plan in order to get everyone in society involved in understanding and using AI tools.
“It’s really about upscaling the masses,” he said. “It’s not just the corporate perspective, but down to educational institutions in our country, so we are aligned on where this technology is going in the future. We’re not doing that today.”
About a dozen companies, including BlackBerry Ltd., signed up when the code was first launched. Today, the number of signatories is at 40.
While Karan lauded the guidelines, he said it’s still not enough unless more companies come on board.
“The voluntary code of conduct was met positively as it gave businesses a sense of where the government is going to focus,” he said. “But because it’s voluntary, there’s about 40 per cent of companies that have clear guidelines and frameworks, and 60 per cent very much don’t have a drafted framework governing use. That’s a problem. We need to move from voluntary to binding to get to 100 per cent.”
The lack of clarity by the federal government may be especially problematic because of the novelty of AI technology and all the potential problems that can arise. Companies are hesitant to make mistakes, with the pitfalls of improper use of AI ranging from the spreading of misinformation to discrimination.
“We are seeing a tepidness,” Karan said. Businesses have taken note of how “improper use of tools can impact brands, customers and employees.”
It’s not just a framework that’s preventing widespread AI use, he said; a lack of money is also a problem.
“We’re not seeing here a real focus of capital and investment to drive the adoption of AI.”
Canada also trails Singapore, Sweden, Estonia and South Korea when the investment figure is compared against a country’s gross domestic product.
“A lot of investments have been geared towards small to medium businesses in Canada, and that’s great,” Karan said. “However, unless you open it up to enterprises in Canada, the SMBs can’t take advantage of the scale.”
The KPMG survey said 88 per cent of SMBs feel new tax measures, such as the capital gains rate hike, are having a chilling effect and risk stifling economic growth, with almost a third saying they are strongly considering moving their investments or business to a jurisdiction with more favourable tax conditions.
“Our survey revealed an undercurrent of frustration over the impact of new taxes on Canadian business owners and entrepreneurs, who want to see Canadian tax policy become more competitive relative to our major trading partners,” Dino Infanti, National Private Enterprise Tax Leader at KPMG in Canada, said in a release.
Karan said issues SMBs are faced with when trying to scale AI include financial constraints, data limitations and a lack of resources. Scaling AI allows businesses to continue to meet market demands, maximize revenue and attract investors, but SMBs are likely to struggle with exponential growth.
“The scale of AI is the biggest problem,” Karan said. “All businesses, outside of the top banks, struggle with this.”
Although a changing global political landscape will make it more difficult, he believes there’s still time for Canada to catch up and keep pace with other countries in moving forward with AI implementation.
“We can catch up if we have the right focus of investment and prioritization,” Karan said. “What we need to do is fundamentally define the North Star: What do we want AI to do for our businesses and communities? Until then, we are a rudderless ship.”