Canada Urged to Regain Edge in AI Innovation

Canada, once a pioneer in artificial intelligence, is facing growing concerns that it has ceded its early lead to global competitors. Industry figures like Allen Lau, co-founder of online fiction platform Wattpad and now managing partner at Toronto-based Two Small Fish Ventures, are warning that the country risks repeating past mistakes unless it acts decisively to support the next wave of AI breakthroughs.

Lau argues that while Canada laid the groundwork for AI research through investments in academic labs and talent development, it has struggled to translate that expertise into globally dominant companies. Many top Canadian researchers and startups have been acquired or lured abroad by larger U.S. and European tech giants, diluting the domestic ecosystem.

His venture capital firm, Two Small Fish Ventures, is now targeting what Lau calls the “Next Big Thing” — AI-driven startups capable of scaling globally from Canadian soil. He believes stronger support for commercialization, access to growth capital, and policies that encourage companies to stay and expand in Canada are essential to reversing the current trend.

Other tech leaders echo his concerns, pointing to examples where promising Canadian AI firms moved operations overseas or were bought out before reaching their full potential at home. With AI poised to reshape industries from healthcare to finance, advocates say Canada must strengthen its innovation pipeline, ensure talent retention, and create conditions for homegrown firms to thrive if it hopes to reclaim leadership in the sector.

Sources: AirGuide Business airguide.info, bing.com