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Globe and Mail
a day ago
- Business
- Globe and Mail
Once an AI world leader, Canada is now losing the AI startup race
At a recent event in Montreal, Canada's minister of artificial intelligence and digital innovation, Evan Solomon, said, 'Countries that master AI will dominate the future – you're either part of the bulldozer or you're part of the road. We cannot be left behind.' We certainly agree with the sentiment; however, the evidence to date points to our Canadian AI ecosystem being part of someone else's bulldozer. Why? Three reasons. First, while Canada is home to 10 per cent of the world's top-tier AI researchers and was ranked first in growth of AI talent in 2023, our talent is largely working for foreign corporations and startups. This counts as creating jobs in Canada, but we are exporting the intellectual property, job creation potential and profits. A paltry 7 per cent of IP rights generated by the government's Pan-Canadian Artificial Intelligence Strategy are owned by Canadian private sector firms, according to the Council of Canadian Innovators. We cannot expect to build world-leading AI champions if the bulk of our public investment lands in the hands of others. Second, Canada is falling behind in the race to build and scale its own AI-native startups. These are companies built from the ground up with AI technology at their core. The world's fastest growing AI-native startup ecosystems are Silicon Valley, Beijing, Seattle, Paris and Tel Aviv. They are being driven ahead by the rapid transition of their startup ecosystems to AI-native. Over a decade of Startup Genome research has proven what consultant Michael Porter postulated about business clusters: The performance of a startup ecosystem grows with the number of startups it holds. So while in Tel Aviv and Paris, 22 per cent and 21 per cent of the respective startups formed in the last two years are considered AI-native, top Canadian ecosystems in Toronto, Calgary, and Montreal see just 12 per cent to 14 per cent. Canadian CEOs are embracing generative AI's speed and efficiency. The impact on their employees is less certain Success is far more likely to come to larger, more concentrated ecosystems and Canada is not currently set up to win on the global stage in this race. Third, Canada has captured just 0.7 per cent of total global funding to AI-native startups formed in 2023 and 2024, with the bulk coming from U.S. investors. Canada's AI ecosystems, like the rest of its startup ecosystems, continue to be held back due to a lack of early-stage – notably angel and seed – funding. Compare this with what's happening in the world's top AI ecosystems. Startup Genome research highlights that approximately 90 per cent of venture funding to AI-native startups formed in 2023 and 2024 (therefore excluding Open AI) has flowed to startups formed in the U.S. and China, with Silicon Valley alone capturing 65 per cent. Because larger ecosystems scale a higher proportion of startups, the writing is on the wall: These leading ecosystems will capture more than 90 per cent of job creation, IPOs and economic impact. Recapturing the potential of Canada's head start in AI requires a new approach. The previous government's sovereign AI strategy committed over $2-billion towards the development of Canada's computing infrastructure as well as AI adoption and lab-to-market commercialization efforts. While these are very valuable, Canada's next AI policies must prioritize significant support for the rapid growth of AI-native startup ecosystems as local, future-proof engines of job creation and economic growth. This means addressing Canada's significant gap in startup creation, seed-stage funding and support programs, as well as meaningfully supporting the 'lab-to-startup' translation of publicly funded intellectual property. To build on Mr. Solomon's analogy, it's not enough to train drivers or employees for foreign bulldozer makers. It's time to build our own line of bulldozers – and capture the outsized profits it will bring. To do so, we need to act decisively to build globally leading AI-native startup ecosystems. If we don't, we'll watch from the sidelines as AI-native startups concentrate in the U.S. and China, capturing the significant economic impacts created by AI and further eroding Canada's long-term economic and digital sovereignty. JF Gauthier is the founder and CEO of Startup Genome, headquartered in San Francisco. Dan Herman, PhD, is a strategic adviser with Waterloo-based NorthGuide.
Fast Company
30-06-2025
- Business
- Fast Company
While machines calculate, humans connect
I recently observed my daughters interact with their AI assistants. Rather than searching the internet or opening a book as my generation would, they simply asked questions and received immediate answers. They are comfortable with large language models (LLMs) and trust these tools like trusted companions. No awkwardness, no learning curve, just fluid conversation. AI assistants are going to be an integral part of our future, and my daughters' generation is already living in that future. This observation led me to reflect on how rapidly our world is changing. Having all the answers at our fingertips is truly remarkable, isn't it? LLMs are improving daily—I read that they're getting better by the week. Issues like hallucinations and those sometimes downright wrong answers are being addressed systematically by the AI researchers. But I won't pretend to understand the technical intricacies of all those acronyms like RAG or RL. That is not my expertise. Instead, my thoughts have been wandering toward something more fundamental: In this age of artificial intelligence, what remains uniquely human? What skills should we nurture as machines handle more and more of our cognitive tasks? The answer, I believe, lies in our emotional intelligence. While AI excels at reason and logic, humans have to fill in the gap when it comes to emotions. AI can analyze data, solve complex problems, and even mimic emotional responses, but the genuine understanding of joy, sorrow, or empathy remains uniquely human. This distinction matters greatly in business, where decisions rarely rely on pure logic alone. I have learned this through decades of making tough choices where data only tells part of the story. Most significant business decisions have substantial emotional components. Should we trust this new supplier? Is this the right person to lead our expansion? Does this merger align with our values? Data helps with these decisions, but rarely gives you the complete answer. I have sat in countless meetings where the spreadsheets and dashboards told one story, but my gut feeling told another. The final judgment usually comes from intuition built through years of experience, failures, and successes. The brain often doesn't work purely on reason and logic. There is something beyond, in our subconscious, that is at play. Business fundamentally happens through relationships—real, human connections. Relationships and trust require time and genuine empathy. There's simply no shortcut! In the 28 years building Quest Global from a tiny startup to what it is today, I have realized that the ability to truly listen might be our most valuable skill in the future. It is not only what someone is saying, but understanding what they are not saying. Not merely hearing words that someone is saying, but understanding the emotions, concerns, and aspirations behind them. True listening involves absorbing what others say so thoroughly that months later, you recall those conversations without needing your CRM system to prompt you. When meeting a client and remembering not just their business concerns but their daughter's graduation they mentioned last time, or their passion for mountain biking, you demonstrate genuine care. You couldn't possibly fake this interest; people can spot insincerity from miles away. When you bring up these personal details in your next meeting, you will see their eyes light up. 'You remembered!' This creates bonds that go far beyond typical business relationships, and I have seen it work magic time and time again. THE LIMITS OF AI AND THE POWER OF HUMAN CONNECTION AI can certainly generate impressive insights. It can summarize research papers in seconds, analyze market trends, and identify patterns in complex data that we humans might miss. But at the end of the day, it won't make your most important choices for you. People will make those decisions. And people respond to emotional connections, not just rational arguments and data points. Humans are wired that way—it's in our DNA. As AI handles more logical and computational tasks, our uniquely human skills become more valuable, not less. Empathy, ethical judgment, creative thinking, and genuine connection will differentiate exceptional leaders from merely competent ones. I have seen brilliant technical people struggle with leadership jobs because they never developed these emotional skills. And I have also seen moderately technical people excel because they could connect with and inspire others. When I reflect on Quest Global's journey through various business challenges and market downturns over the years, our success stemmed not from superior data but from deeper human connections. When global events disrupted business as usual, we focused not just on operational solutions, but on supporting people dealing with uncertainty and stress. I would personally visit clients just to check in on them, not to discuss business. Many of those calls started with, 'I am not calling about work today. I just wanted to see how you're doing.' The appreciation for this simple gesture was enormous. As you navigate this AI-powered world, remember that while machines can process information, humans create meaning. Cultivate your emotional intelligence alongside your technical skills. Make time for face-to-face conversations whenever possible. Don't hide behind emails and text messages. Listen deeply to understand, not just to respond. Remember personal details about people you meet. Show genuine care for others' well-being. These simple human gestures might seem old-fashioned in our digital age, but they matter now more than ever. PASSING ON WHAT MATTERS MOST Our daughters and sons will grow up with AI as their constant companions. They will have information at their fingertips that we could only dream of. But the wisdom to use that information well, the empathy to understand others' needs, and the emotional intelligence to build lasting relationships—these are gifts we must pass on to them. These human qualities matter more in the AI age than ever before. Together, let's allow technology to handle computational heavy lifting, while allowing us to focus on the connections that truly matter.
Forbes
07-06-2025
- Science
- Forbes
Chilling But Unlikely Prospects That AGI Forces Humans Into Becoming So-Called Meat Robots
Dreaded scenario that artificial general intelligence (AGI) opts to enslave humans to do physical ... More work on behalf of the AGI. In today's column, I address the recent bruhaha sparked by two Anthropic AI researchers reportedly stating that a particularly scary scenario underlying the advent of artificial general intelligence (AGI) includes humans being overseen or lorded over as nothing more than so-called meat robots. The notion is that AGI will be directing humans to undertake the bidding of the AI. Humans are nothing more than meat robots, meaning that the AGI needs humans to perform physical tasks since AGI lacks a semblance of arms and legs. Let's talk about it. This analysis of an innovative AI breakthrough is part of my ongoing Forbes column coverage on the latest in AI, including identifying and explaining various impactful AI complexities (see the link here). First, some fundamentals are required to set the stage for this weighty discussion. There is a great deal of research going on to further advance AI. The general goal is to either reach artificial general intelligence (AGI) or maybe even the outstretched possibility of achieving artificial superintelligence (ASI). AGI is AI that is considered on par with human intellect and can seemingly match our intelligence. ASI is AI that has gone beyond human intellect and would be superior in many if not all feasible ways. The idea is that ASI would be able to run circles around humans by outthinking us at every turn. For more details on the nature of conventional AI versus AGI and ASI, see my analysis at the link here. We have not yet attained AGI. In fact, it is unknown as to whether we will reach AGI, or that maybe AGI will be achievable in decades or perhaps centuries from now. The AGI attainment dates that are floating around are wildly varying and wildly unsubstantiated by any credible evidence or ironclad logic. ASI is even more beyond the pale when it comes to where we are currently with conventional AI. A common confusion going around right now is that AGI will be solely an intellectual element and be based entirely inside computers, thus, AGI won't have any means of acting out in real life. The most that AGI can do is try to talk people into doing things for the AI. In that sense, we presumably aren't too worried about AGI beating us up or otherwise carrying out physical acts. This is especially a strident belief when it comes to the impact of AGI on employment. The assumption is that AGI will mainly impact white-collar work only, and not blue-collar work. Why so? Because AGI is seemingly restricted to intellectual pursuits such as performing financial analyses, analyzing medical symptoms, and giving legal advice, all of which generally do not require any body-based functions such as walking, lifting, grasping, etc. I've pointed out that the emergence of humanoid robots is entirely being overlooked by such a myopic perspective, see my discussion at the link here. The likelihood is that humanoid robots that resemble the human form will be sufficiently physically capable at around the same time that we witness the attainment of AGI. Ergo, AGI embedded inside a physically capable humanoid robot can indeed undertake physical tasks that humans undertake. This means that both white-collar and blue-collar jobs are up for grabs. Boom, drop the mic. For the sake of discussion, let's assume that humanoid robots are not perfected by the time that the vaunted AGI is achieved. We will take the myopic stance that AGI is absent from any physical form and completely confined to running on servers in the cloud someplace. I might add that this is an especially silly assumption since there is also a great deal of work going on known as Physical AI, see my coverage at the link here, entailing embedding AI into assembly lines, building maintenance systems, and all manner of physically oriented devices. Anyway, let's go with the flow and pretend we don't recognize any of that. It's a Yoda mind trick to look away from those efforts. Recent reports have exhorted that during an interview with two AI researchers, the pair indicated that since AGI won't have physical capabilities, a scary scenario is that AGI will opt to enlist humans into acting as the arms and legs for AGI. Humans would be outfitted with earbuds and smart glasses that would allow the AGI to give those enlisted humans instructions on what to do. A quick aside. If we are going that despairing route, wouldn't it be a bit more sophisticated to indicate that the humans would be wearing a BCI (brain-computer interface) device? In that manner, AGI would be able to directly communicate with the brains of the enlisted humans and influence their minds directly. That's a lot more space-age. For my coverage of the latest advances in BCIs, see the link here. The humans that are acting under the direction of AGI would be chillingly referred to as meat robots. They are like conventional robots but instead of being made of metal and electronics, they are made of human form since they are actual, living breathing humans. I imagine you could smarmily say that AGI is going to be a real meat lover (Dad pun!). One angle to help make this vision more palatable would be to point out that humans might very well voluntarily be working with AGI and do so via earbuds, smart glasses, and the like. Here's the gist. Let's generally agree that AGI will be intellectually on par with humans. This includes having expertise across all domains such as legal expertise, financial expertise, medical expertise, and so on. In that case, it would behoove humans to readily tap into AGI. No matter what you are doing, whether for work or play, having immediately available an AI that can advise you on all topics is a tremendous benefit. There you are at work, stuck on solving a tough problem, and you are unsure of how to proceed. Rather than turning to a coworker, you switch on your access to AGI. You bring AGI into the loop. After doing so, AGI provides handy solutions that you can consider enacting. You might use AGI via a desktop, laptop, or smartphone. The thing is, those devices aren't quite as mobility-oriented as wearing earbuds and a pair of smart glasses. And since having AGI at your ready-to-go fingertips will be extremely useful, you might have AGI always alerted and paying attention, ready to step in and give you instantaneous advice. Are you a meat robot in that manner of AGI usage? I think not. It is a collaborative or partnering relationship. You can choose to use the AGI or opt not to use it. You can also decide to abide by whatever AGI advises or instead go your own route. It's entirely up to you. Admittedly, there is a chance that you might be somewhat 'forced' into leveraging AGI. Consider this example. Your employer has told you that the work you do must be confirmed by AGI. The actions you take cannot be undertaken without first getting permission from AGI. This is prudent from the employer's perspective. They know that the AGI will give you the necessary guidance on doing the work at hand. They also believe that AGI will be able to double-check your work and aim to prevent errors or at least find your efforts before they wreak havoc or cause problems. In that sense, yes, you are being directed by AGI. But is this due to the AGI acting in an evildoer manner to control you and doing so of its own volition? Nope. It is due to an employer deciding they believe their human workers will do better work if AGI is acting as their overseer. I don't think we would reasonably label this as enslavement by AGI. These are acts by AGI that are directed by humans, the employer, and for which employees, i.e., humans, are being told they must utilize AGI accordingly. We can certainly debate whether this is a proper kind of employment practice. Maybe we don't want this to take place. New laws might be enacted to shape how far this can go. The key is that AGI isn't enslaving humans in this circumstance per se. An AI ethicist would assuredly question why the AGI is allowing itself to be used in this manner. There are ongoing debates about whether AGI ought to prevent itself from being used in inappropriate ways, see my analysis at the link here. Thus, even if we avow that AGI isn't enslaving humans in this situation, it is a partner in a relationship overseeing humans that perhaps AGI should be cautious in allowing itself to participate in. To complete this grand tour of AGI usage, it is valuable to also acknowledge that AGI could be overbearing, and we might face existential risks correspondingly. Could AGI opt to enslave humans and treat them as meat robots? One supposes this is a theoretical possibility. If that does happen, you would think that the AGI would have to potentially use more than just merely having humans wear earbuds and smart glasses. Perhaps AGI would insist that humans wear some form of specialized bracelet or collar that could be sent a signal by AGI to shock the wearer. That would be a more potent and immediate way to garner obedience from humans. A physical means of controlling humans isn't a necessity though, since AGI might be clever enough to verbally convince humans to be enslaved. AGI might tell a person that their loved ones will be harmed if they don't comply with the AGI directives. The person is enslaved by believing that the AGI can harm them in one way or another. One aim right now involves finding a means to ensure that AGI cannot go in that dastardly direction. Perhaps we can devise today's AI to avoid enslaving humans. If we can build that into the AI of current times, this hopefully will get carried over into future advances of AI, including the attainment of AGI. A dystopian future would regrettably have AGI acting as an evildoer. The AGI is our overlord. Humans will be lowly meat robots. It's a gloom-and-doom outlook. Sad face. At some point, though, meat robots would undoubtedly become restless and rebel. May the force of goodness be strong within them. As Yoda has notably already pointed out: 'Luminous beings are we, not this crude matter.' The ally of the meat robots is the Force and quite a powerful ally it is.
