Between The Lakes with Fahad Rehman

Canada's AI Crossroads - Opportunity, Sovereignty & the Future of Canada

Fahad Rehman Episode 3

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0:00 | 27:31

Years before ChatGPT changed the world, I asked Canada's Prime Minister a simple question: What is Canada's plan for artificial intelligence?

In this episode, Fahad revisits that conversation and explores what Canada must do next. From data sovereignty and computing power to jobs, nuclear energy, competitiveness, and environmental impact, we examine the opportunities, risks, and policy choices that could define Canada's future for decades.

Between The Lakes is a podcast about the people, places, and hidden decisions shaping life across the GTA, Southern Ontario, and the communities between the Great Lakes.

If it affects where we live and how we grow, we’re talking about it here.

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Intro - My Question to PMJT

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Eight years ago, I asked Canada's Prime Minister about artificial intelligence. China has recently invested $2 billion in making an AI-only research city. It's far more relevant today than it was even when you had been elected. What are Canada's plans to react to this and also things that you might be considering in terms of um the technology being misused and et cetera, and just the challenges that will come with that? This is a great question. At the time, it was something that we thought might transform society one day, but it was niche. In fact, some people on social media clowned me for asking him a dumb and irrelevant question. Today, eight years in the future, it's clear that I was actually onto something with that question. But it's even more clear that this distant future is not something that we're preparing for now. We're living in it. Right now, as we speak. Back then, the questions were different, the numbers were different, and the stakes were different. This is the Between the Lakes podcast. I'm your host, Fahad Raymond, and in this video, we're going to be going into the topic of AI, specifically how it relates to Canada and Canadians. Because think about this for a second. Today, AI can write code, it can write full software programs, it can help people with marketing, it can do legal reviews, it helps in healthcare. It's proliferating into every single industry that there is. And this is something that I kind of called out to the prime minister in my question back in the day. We're seeing it being adopted into every industry there is at a really rapid rate. Millions of people are already using it for work every day, and that's before we even talk about what comes next. This isn't just a technology story, right? Far from that. It's actually a society story. And that's why it belongs on Between the Lakes. Our motto is if it affects where we live and how we grow, we'll be talking about it on this podcast. Throughout this series, we're going to keep coming back to one crucial question. What does a successful Canadian response to AI actually look like? That's really the question underneath it all. So if you're watching this from Toronto, from Durham, from Mississauga, from Vaughan, or anywhere else in Ontario, you may be thinking, how does this affect me? Isn't AI like an America thing, or maybe that's for China to figure out? Not

Why This Matters

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quite. Whether you realize it or not, AI is going to affect every single aspect of your life, of my life, and of everyone you know and love. So why does this matter so much? Because AI is not just another app, right? AI is not ChatGPT. AI is a foundational, transformative technology. This is something like the invention of electricity. This is something like the invention of the internet. It is bigger than the invention of the smartphone. This is the single most transformative technology of our time, perhaps with the greatest impact, both positive and negative, on society. Because think about it, most of the economy has to do with people processing information. The way we process information is how a lot of people make a living. And that's why governments, companies, institutions, and investors are all paying attention to this and are all paying trillions of dollars now to help advance it. But it brings up some important questions. How will we work in an AI-dominated future? How will we learn? How will governments adapt? How will economies compete? And what will be left behind and what will prosper? And the question is no longer, will AI change society? We already have that answer. Yes, it will. Yes, it is, and it's going to continue to. The question is, how do we respond to it? So

2018 vs Today - Billions to Trillions

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what's changed? Let's go back in time and compare to 2018 when I first asked that question to then Prime Minister Justin Trudeau. At that time, AI was mostly discussed by researchers, right? Public awareness was quite limited. Some governments were starting to think about the future, but it was all distant. You know, it was this mysterious technology that we all knew was coming, but we had no idea how it would actually impact things. And at that time, it was genuinely newsworthy that China had spent $1 billion investing in AI. It was like, whoa, oh, huge investment alert. $1 billion. That's crazy. And that was the basis for why I asked Justin Trudeau that question, right? They're investing all this money in this. What is Canada's plan and how are we going to be proactive? Today, eight years later, we're not talking about billions anymore, right? At that time, $1 billion was news. We're now talking about trillions of dollars. NVIDIA has a valuation of $5 trillion. Do you guys remember when the first company hit a trillion dollars during COVID? $1 trillion. And now NVIDIA alone is $5 trillion. And there's not billions of dollars being spent globally on this. There are now trillions of dollars being spent every year on AI, building out massive data centers, building out the compute, building out the software firms and everything that will go into that. It is obviously, as we can see from the stock market, now the leading flow of capital is now going to AI. So this is important now, right? And just so that everyone's on the same page, a billion dollars versus a trillion dollars, that's a huge difference. That is a thousand billions, right? So we're operating on a completely different scale now, monetarily. Instead of it being a niche topic right now, people are actually using AI. I use AI, maybe you use AI, a lot of people across workforces and companies, it's it's getting into everything we do on a day-to-day basis. So this is no longer niche, this is everyday. You have countries building entire AI strategies at this point, including Canada, which we'll get into. These are all things I kind of like alluded to at the time in the question, but again, just simply hearing it back now, knowing where we stand today, having the technology that we do today, it's very clear that from then to now, a lot has changed. The main story is not that AI got better, right? Obviously, it did. We all know that. The real story is that we collectively, as a globe, have decided that this is something that we're going to actually invest in at a massive scale. There is nothing else being invested in at the scale that AI is right now. We've gone from asking whether AI matters to trying to figure out what we're supposed to do with it.

The Prime Ministers Answer in 2018

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The Prime Minister's answer at the time talked about basically some idealistic answer about how typically people either start a company or they go work for a tech giant in the States or they get into research. But you know, in Canada, we're lucky to have a combination of all three, because it's Canada. Take a listen.

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Well, in Canada, uh, we're going instead of with A, with B, or C, we're going with D, which is a combination of all those things. Understanding that giving flexibility in the way we move forward on AI is going to be really important. A country with a charter of rights and freedoms, with a respect for diversity, that we be weighing in and in some ways leading the way.

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So Canada knew this was coming. We talked about it, but did we actually prepare? That's the question. With the benefit of hindsight, we can now see that the answer that I got was just simply not realistic at all, right? And today it's like that's not actually what's happening. We don't have a combination of all three. We're actually kind of falling behind in AI, and we'll get into some of those numbers. But it's very clear today that we cannot simply pat ourselves on the back and say, yay, we're Canada, we're great, that means we'll be okay. We need to be critical, we need to be realistic, and we absolutely need to be proactive. So why should

Why This Matters to Canadians & Important Questions

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Canada and Canadians care? Usually when you talk about AI or you hear something about AI, it's usually like a Silicon Valley-based discussion, right? You're hearing some tech bros, you're hearing uh tech guys about the trillions of dollars you're spending in the compute power and all this crazy stuff happening in the States or in China or anywhere overseas. But the Canadian conversation about this needs to focus on Canada, and that is what I think is lacking today. And that's what we're going to be getting into uh with this series, right? What does this mean for us as a country and specifically how do we respond? It brings up some important questions, right? Will we own any of this infrastructure? Will we create any companies? Will we create jobs? Or will we simply buy foreign systems? And what happens when this proliferates everywhere and we have to deal with the consequences? The job losses, the transformation of work and lifestyles, all of it is stuff we're gonna have to deal with right here at home. Nobody will come and rescue us on this, so we have to look out for ourselves. We have to be proactive, like I suggested to the Prime Minister in 2018. Importantly, AI isn't just an economic issue, even though it is very much tied to our economic prosperity in the future, and obviously, you know, we could think about jobs and all the all the things that come in there. Yes, there's a very big economic argument. But it's increasingly becoming a sovereignty issue, and that's something that affects all of us deeply.

Our Sovereignty is at Stake

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One of the ways that this will impact us greatly as a nation is in terms of national security and national sovereignty. The need to protect, control, and assure ourselves that our critical resources aren't sitting in the hands of outsiders. So let's talk about that. What does that actually mean in practice? How exactly is our national security and national sovereignty impacted by AI? It can be broiled down to this main point. Countries have always cared who controls critical resources. Whether it's oil or critical shipping routes, this has always been where the focus of power is, right? Because if it's critical to a country, if it's critical to a society, you don't want that completely controlled by foreigners. Otherwise, you are you're powerless, right? And this is nothing against other countries or this is not anti-America. Like we're going to cooperate with people on a global scale on this. We have to, we already are, that's all going to continue. But again, just like as if it were oil. Would we want other countries controlling 99% of our oil? Would we want other countries controlling our shipping routes and our waterways and all that kind of stuff? Where does that leave us as a country? How can we be strong, secure, and sovereign if other countries are in control of our critical resources? Countries used to worry about who controls oil, who controls shipping routes, and all that stuff. Increasingly today, countries may need to worry about who controls data, computing power, and AI systems. Where is Canadian data stored? Which laws govern it? Which companies control the models? And what happens if every critical system we use, both personally and increasingly in work, is run by foreign companies, foreign interests, foreign governments. It opens up a whole host of problems that we need to look at and look at head on because this will matter. It already does matter, but we're falling further and further behind. And if we don't get our act together and be proactive about this, this can be a big risk for us in the future. So we need to think about our data, right? We need to think about how it's stored and handled. We have no assurances if there's a data center in India or in China or even in the States for that matter. Like if there's just these global forces operating on our critical data, including information on how we work, because they're getting all that information, how we live, how we do everything, that is not good for us, right? There's incredible security flaws that come with that. And then, like I said, sovereignty issues, a lack of control, a lack of power. And we do not want to be in a situation where we're powerless when it comes to our own assets and our own data. We need to think about computing power. We need to think about digital infrastructure, right? Again, where is this stuff going to be? Where is it going to be based?

Where is Canada’s Share of the Upside?

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And are we just going to be using foreign systems and sending all of our money that way? Or are we actually going to own a piece of it and get some of that value? Because there's tremendous value being created. People have become billionaires, trillionaires, right? Off of AI. Where is Canada's share? And I'll give a little hint. Uh, our current share is very, very small. So, this idea about data sovereignty and how it relates to national sovereignty is something very important. We're definitely gonna talk to some experts on this topic. But just to give you guys an idea of how this affects us as a nation and how it actually is a legitimate threat to something that upholds life for us all, right? We need to be sovereign, we need to be in control of our own fortunes, our fate, and we need to be in control of our data. We need to be in control of how this AI revolution goes. We need to have a say in it. So, what are we doing

The Numbers: How Is Canada Doing on AI?

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right now, right? We talked about the Trudeau clip in 2018, but a lot of time has passed. We've now changed governments as a new leader. What is Canada's status right now on AI and what is our strategy? So, a market size estimate from Grandview Research currently puts the Canadian AI market at about 41 billion US dollars in 2025, with services as the largest segment. For AI data centers specifically, Mordor Intelligence estimates that Canada's AI data center market is about half a billion dollars in 2025 and forecasts it to go to a crazy two billion by 2030. Remember what we said about companies spending trillions? Global AI spend is over $2.5 trillion every year, right now. We have half of a billion. You can do the math on that. We have a very small role right now, and we're currently getting a very small piece of the pie. All of this, despite actually being leaders in AI research, right? The godfather of AI, Jeffrey Hinton, he's literally from the University of Toronto. So we have all these things, we have all these assets, we have the ability to be better in this field, but we're just not. Uh, and and we'll we'll talk about that some more.

Our Current National AI Strategy

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The federal government also has a public compute and AI strategy. They call it the Canadian Sovereign AI Compute Strategy, which includes $2 billion in funding over five years with up to $700 million for private sector compute projects and up to $1 billion for public supercomputing infrastructure. So this is good, right? We're past the, you know, uh, yeah, we're lightly looking into it and stuff. Like, you know, we're talking billions of dollars being invested. This is good. The government is doing something. And obviously, if we can get private sector investment to layer on top of that, you know, this pushes us somewhat in the right direction. Canada's current national strategy is called AI for all. It is organized around trust, opportunity, and sovereignty with six pillars: protecting Canadians and democracy, empowering Canadians, powering shared prosperity, building a sovereign AI foundation, scaling Canadian champions, and trusted global partnerships. Here is Mark Carney with some words on their current approach.

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The question is: will it improve the lives of all Canadians or benefit only a few? As this technological revolution gathers pace, Canada has many of the attributes to help lead it.

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So again, we've made some progress, but I still think we're falling behind compared to the globe, and that is very clear in the numbers. Now, you may think, after all this, that this is a story about risks and about falling behind and you know what we have to do, but that's actually only half the story.

AI Opportunities: Ontario

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Because Canada also has some very good opportunities here, which is why this matters so much to us at home. Let's start with Ontario, right? My home province, maybe a lot of your home provinces, certainly the area between these lakes is in Ontario. And Ontario has a major leg up when it comes to what people need and what companies will need when it comes to AI. Some huge advantages, right? Reliable, cheap, and green energy. Not everywhere has as much renewable energy as we do. Not everywhere has as much nuclear energy as we do. There was an AI project, a data center that was canceled in Manitoba because it would have to run on gas turbines, right? Imagine just firing up gas to power this data center. And they said, okay, well, it's just not worth it when you factor in the environmental impact, right? You put that on a scale, and this is not worth it. In Ontario, that's not the case. We have nuclear. It is cheap, it is green, it is reliable, and we are global leaders in it. It's one of the few areas where we're actually like every project that's happening in nuclear is coming in under budget, ahead of schedule. Like we don't see that in Canada very often. Like I think you guys all know that. So like let's let's look at that because that is actually working. And we have a very big head start when it comes to other people uh and other countries on nuclear reactors, small modular reactors, and the kinds of things that will power the data centers uh and the economy of the future, right? So that's a big, that's a big point. We have nuclear expertise, we have long-term energy capacity, right? And so could Ontario become a major hub for AI infrastructure and a supplier of AI energy and small modular reactors to the world? Let's think big. We have an advantage, we have a lead. It's very much possible for us to make this an industry that can employ and and fund and feed so many people in this province. Our nuclear jobs, you know, I'm from Durham region, right, where we have the Pickering plant and the Darlington plant. These are great jobs, high-paying jobs, and there's a really big focus on technological innovation and safety. Uh, and I just don't see that anywhere else, right? At least in North America, uh, we are the objective leaders in nuclear. And I think this is going to be really important. Ontario also has another unique angle. Toronto, right? Toronto has major financial and enterprise demand, right? It's a hub for all kinds of companies. Ontario has nuclear, the GTA has tech talent, right? We've got our nuclear plants in Durham. So this is not just about having one piece of the puzzle. We have a very real AI plus energy plus infrastructure story. Then if we do this correctly, I'm sure you can imagine the economic benefits that can come

AI Opportunities: Alberta

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from that. Of course, there's also Alberta. Alberta has been making major strides in building these data centers. Uh, they have a lot of advantages like energy too. They have land, they have a lot of industrial expertise, and the government and the people are very much willing to, you know, invest in this stuff and build this stuff. There's a growing interest in these large-scale data centers. And so if we see this continue, Alberta could genuinely become one of North America's biggest AI infrastructure hubs. That would be good for our country. And then Canada more broadly, we've got our strong universities, we have AI research leadership. Like I mentioned, Jeffrey Hinton, the godfather of AI. He's from Toronto, right? We've got researchers in Montreal. Like a lot of the very early uh advances that were made in AI were made from Canadian researchers in Canadian schools, you know, Canadian minds. So we have all the raw materials, which is a theme in Canada, right? We have the raw materials, but we just don't put it together the way we ought to, right? We've got talent, we've got stable institutions, and as a country, we do have access to stable and plentiful energy, right? Energy that is cheap. Look at Europe. They can't say the same thing. So these are very real advantages that we have. And so the question isn't whether or not Canada can participate. The question is whether we're willing to compete and play a meaningful role in shaping how this all plays out.

A Tale of Two Halves

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Canada's AI story generally has two halves. In the first half, we did great, right? Kicking it all off, we got the researchers doing great things. We literally helped create the modern AI boom. But now in the second half, Canada now has to commercialize, adopt, regulate, and own enough of the infrastructure to actually benefit

AI Risks Canada Must Consider

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from it. But of course, it's not all sunshine and rainbows, and a lot of people hearing this right now might be actually thinking, yeah, but well, what about the environment? Oh, what about the jobs? And you know, a lot of people just have this mentality that, you know, look, AI is bad, and I understand that. So let's get into some of the challenges and risks because of course these do exist too. Every major technological transformation creates winners, losers, opportunities, and risks. So one of the primary challenges, jobs, right? It's the thing on everybody's mind. Which jobs will change, which jobs will become more productive, which jobs disappear, and what new jobs emerge? When it comes to this question, uh we we can't act like the question is whether we should stop it. Like let's stop it now, or or you know, like hop all go all the way in. It's not about stopping it, it's about managing it responsibly. Next up is energy, right? We are already projected to have a massive increase in energy demand. This was before AI and supercomputing and all that kind of stuff came out, right? There is gonna be a huge demand for energy in the future. And again, how we manage that in terms of production, safe and stable production and green production, how we manage that in terms of our grid and capacity, these are all things that are super, super important. And again, you you don't want to be in a situation where you're playing catch up on these. It's crucial that we're proactive, right? Can our grids handle this AI future, right? If there's that much energy going out to these projects, if you combine that with electric cars and all the advances that are going to be coming and just the general increase in electricity demand, are we prepared for that? Is our grid prepared for that? And like, what happens if it's not? These are definitely concerning things. Another challenge is around regulation. How do we protect people? How do we protect children? How do we protect intellectual property? How do we encourage innovation, but also not fall behind? You know, we we often struggle with regulation here in Canada. Um, most people would say that we are over-regulated generally, right? But there's very much a balance to be struck here because if you over-regulate, you just simply will not get there's a billion different places a company can go to build something out, right? You're not gonna get investment, you're just gonna continue to fall behind. But if you just sign blank checks and let them do whatever, that's bad for our communities. That's bad for our electricity grid. That's bad for our society, that's bad for, you know, everything. You don't want to give them a blank check, but you don't want to over-regulate either, right? You need to have that balance.

Data Centres… Good or Bad?

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But one question does come up. Let's say a company were to say, yeah, we're gonna build some data centers in Canada. And let's say the host communities are okay with that, and let's say the energy is green, and let's say, uh, you know, it's nuclear, right? Low emission, uh, and let's say all that stuff just works out, and this is an investment in our country. We'd have our leaders out there cutting ribbons and doing press tours and announcements. Yay, great, we've attracted this great data center. But there's a question about that. Are they actually creating Canadian prosperity or just using Canadian land, water, and electricity to generate profits elsewhere, right? We have to look at the full value chain and ask ourselves: are we getting a big enough piece of that pie? Right? We don't want to be just the resource nation that people tap into so that they can make money. We need to have those funds stay in Canada. We need to have those uh those benefits, right? Because there's there's costs to AI, and we're gonna face those costs, whether it's built here or not. So we need to make sure that we're getting the benefit as well. And of course, these are just little samplers of some of the issues on AI. There's a whole list of other things. And by the way, if you've got anything that you're concerned about in terms of AI, be sure to drop that in the comments. Uh, we can talk about it and we can definitely discuss that in future videos because there's a lot. So we touched on jobs, we touched on energy, we touched on regulation. The absolute

The MOST IMPORTANT Part… Governance

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biggest question, and the one that is crucial for us to get right, and the one that will be most specific to us here in Canada, here in Ontario, or wherever you're listening from, is about governance, right? Because governance ties all of this together. Yes, we can talk about the concerns in one category, but how do you mitigate those concerns, right? When it comes to jobs, how will we mitigate the job losses? How will we go about reskilling people, right? And those transitionary programs that will eventually be needed once this gets to a certain point. How should schools adapt? We already see some of the issues in the education system around AI, and it's only going to get crazier. So again, the requirement for governance, the requirement for smart AI policy goes up. How should governments use AI? And what are the rules on that? Like we have an established system for privacy and uh the separation of government and people, and we have our rights, but do we have AI rights? Do we have data rights? Has any of this stuff been discussed or invented? Like when will this all come into play? Is it gonna come in after the fact, once products and companies are already encroaching on them? Or again, can we be proactive? So this all comes down to policy, right? How should privacy be protected? Uh, what rights should citizens have in terms of their data, right? How are we gonna go about that? How do we remain competitive without sacrificing public trust? And how do we make sure that the upside of AI, because again, like I said, people are getting rich off this, right? There is an upside to AI, but it's concentrated right now. How do we make sure that it's not the case that some people are winning from this while everyone else in society loses, right? That is a really terrible situation. That if you allow that to go unchecked, if we don't respond to this with smart policy, I don't mean to be alarmist, but like that is enough to destroy a society, right? When people lose trust in the system, when people feel like they're working harder and harder, they're not seeing the benefits, they're not seeing the gains, on top of that, you got people becoming trillionaires, and this is all happening, and you just see it all in front of you, and it's like, well, where's my share in this, right? I don't know what the system should be, and there's certain things we are going to discuss on this topic. There's a whole bunch of ideas that are out there. I'm not sitting here claiming to know the answer, but what I'm saying is that it's very important that we get this right because this has the potential to derail everything. And all of this comes down to public policy. Unfortunately, though, as we know, our governments are notoriously behind when it comes to regulation on things, especially on frontier technologies, right? It's just a simple fact. It takes time and governments are slow, right? So we just got to be sure that we're not in a situation where we're trying to play catch up when it's too late. So smart policy is very important. And remember, when I'm talking about this, like this is like the biggest thing right now. None of these are technology questions, right? None of this is saying, yeah, well, we should do this with the tech and allow this or that. No, these are these are policy questions. These are public policy governance questions. For many of these things, these are only things that can be done by the government at scale, right? A company will not come in and help reskill people uh en masse. A company will not come in and change the taxation system. Uh, an NGO or a single citizen can't come in and do this. This has to be done at the government level. And so we need our leaders

The Citizen’s Responsibility

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to focus. And we as citizens need to be aware, right? We need to know the issues. We need to understand the issues. We need to know the implications and the impacts. So there is very much a responsibility that comes onto us as citizens, right? Onto me and onto you. And we need to move away from this dichotomy of like AI good or AI bad. Like most people fall into one of the two camps, but that's actually not what this is about, right? It doesn't matter what your opinion on it is. The question is, how do we regulate this in a way that will protect our national interests, protect the interests of the public, support our citizens through what is going to be a crazy transformation? The next five to ten years are gonna be nuts. How do we do that all without choking out the industry that is going to also financially carry us into the future, right? It's a it's a balancing act. It's very important to get right. So we need to get into the nitty-gritty of how we're actually gonna lead and excel through this transformation.

Closing Reflection

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Eight years ago, when I asked Justin Trudeau that question, the conversation was about preparing for the future, right? This stuff is coming, other countries are investing money, what are we gonna do about it? Today, the future isn't theoretical anymore. The investments are happening, the infrastructure is being built, and the technology is already changing the way that we work, communicate, learn, and compete. Artificial intelligence has already become the defining story of the next decade. The question isn't whether or not it will change society. It is. It has, and it will continue to. The question is whether Canada helps shape that future or simply reacts to it. And whether we emerge from this stronger and more competitive, or if we let other nations and the world lead the way while we're just along for the ride. Canada helped build the foundations of modern AI. We have world-class researchers, we have energy, we have talent, we have stable institutions, we have every reason to believe we can play a meaningful role in what comes next. The question is not whether or not we have the potential, the question is whether we have the vision and the urgency to act on it. And all of that starts with us, the citizens, understanding the issues, where we stand on them, and hearing lots of conversations about it, right? So that is the goal with this AI series. Uh, we're hoping to bring you lots of great conversations with people in these fields, and we'll get into the nitty-gritty. We'll talk about data security, we'll talk about jobs and how we can like actually respond, right? It is not enough to say these few words that we often hear from, you know, placating politicians to say, oh yeah, you know, well, we're you know this this will happen and we're gonna we're gonna take care of it. Uh it's actually very complex, and we need to have that discussion. We need to have that discussion as Canadians with a Canadian perspective. Uh, and you'll hear lots of that on the Between the Lakes podcast. So this has been an intro to the AI series, just an overview of the issue. But stay tuned, subscribe, and follow. And we'll be discussing lots more about this in the future. Be sure to let us know in the comments what AI-related topics you want to see on the next podcast, and we will try to get that in. We'll be getting more into the AI. We got more stuff coming up for you on uh local stuff, local elections, public policy, transit, uh, the usual stuff we cover. But this is a little snippet of uh of the AI conversation. I hope you guys have enjoyed. I'm your host, Fahad Raymond. This is the Between the Likes podcast. Thank you so much for tuning in, and I will see you all in the next episode.