March 12, 2026
The Empire Club of Canada Presents
Building Trust and Competitiveness in Ontario’s AI Economy: Hon. Stephen Crawford
Chairman: Seamus Murphy, Executive Committee, Empire Club of Canada; Managing Partner, Council Public Affairs
Moderator
Bob Courteau, Board Chair, Kinaxis
Distinguished Guest Speaker
The Honourable Stephen Crawford, Ontario’s Minister of Public and Business Service Delivery and Procurement
Head Table Guests
Heather Kay, Head of Digital and Financial Policy, Amazon Web Services
Jeannette Patell, Director, Government Affairs & Public Policy, Google
Welcome Address by Seamus Murphy, Executive Committee, Empire Club of Canada; Managing Partner, Council Public Affairs
Good afternoon, everyone. I’m Seamus Murphy, a director on the Executive Committee of the Empire Club of Canada, and managing partner at Council Public Affairs, and your host for today’s event.
To formally begin, I want to acknowledge that we are gathering on the Traditional and Treaty Lands of the Mississaugas of the Credit, and the homelands of the Anishinaabe, the Haudenosaunee, and the Wendat Peoples. I encourage you all to learn more about the Traditional Territory on which you work and live.
Today’s event would not be possible without the generous support of our sponsors. The Empire Club is a non-profit organization, and our sponsors generously support the club, and make these events possible and complimentary for our online viewers to attend. So, please join me in thanking our Lead Sponsors today, Amazon and Google. And thank you to our VIP Reception Sponsors, the Ontario Road Builders Association, Insurance Bureau of Canada, and LiUNA. And to our Supporting Sponsor, Bell Canada. We also deeply appreciate the ongoing support of our Lead Season Sponsors, Bruce Power, Hydro One, and National Bank Capital Markets. And our VIP Reception Season Sponsors, Ellis Don, McKinsey & Company, the Ontario Road Builders Association, and Waste Connections of Canada. And finally, thank you to our Media Partner, the Toronto Star, and our AV Partner, Bespoke Audio Visual.
Now, today, if you have a question for our speakers, please scan the QR code found on your program or through the Q&A function if you’re joining us online. And for those of you online, if you require technical assistance, use the chat feature.
We are here today to discuss one of the defining economic realities of 2026, the AI transformation we are living through is creating unforeseen new economic opportunities, but it is also causing everyone to question how it will impact our jobs. AI also raises profound new ethical questions that have challenged governments worldwide to keep up. The timeline of the technology itself shows us the staggering speed of this transition. As recently as 2022, AI generated images often featured hands with six or more fingers. By 2023, it could pass a bar exam—no offense to any lawyers in the room. In 2024, AI was writing software, and explaining graduate level science. As of last year, some of the best engineers in the world were handing over most of their coding work to AI systems. And that blinding speed of change is creating a massive gap between the power of AI and our readiness to harness it.
Case in point, a 2025 KPMG poll found that more than half of all business leaders think their workforce isn’t ready to work with or alongside AI agents, even though they see them as essential. The good news is, few places are better positioned than Ontario and Canada to take advantage of the promise of AI. Stanford University’s AI Index Report placed Canada in the top five countries globally for private investment in AI. We are a leader in this field. But as we all know, real sustained leadership requires more than just capital. It requires commitment.
Minister Crawford, last September, your federal counterpart, Minister Solomon, said at this podium, “Technology moves at the speed of innovation. Adoption moves at the speed of trust. If we want people to use it, they gotta trust it. And our mission is to close that gap. If we get it right, we’re not just gonna build the next app, the next company, the next Shopify, the next OpenText, the next Ada, we’re building those already. We’re gonna build a stronger Canada, and we’ll secure our digital sovereignty.” End quote.
We are now past the point of wondering if AI will live up to the hype. It is the defining development of our time, and that means our leaders are faced with deciding how AI will be governed, and how our province can lead in this new era. If we get this right, we can build the trust required to accelerate the adoption of AI, and enjoy the benefits that it offers. As AI expands to every sector of our economy, whether we’re talking about trade corridors or infrastructure, digital trust is now the underlying currency. If we want to attract investment and support businesses, we must ensure Ontario remains a trusted hub for innovation. Today, we will explore how Ontario is balancing rapid technological advancement with the necessary protections for privacy, security, and fairness.
To begin our program, I am pleased to welcome Heather Kay, head of digital and financial policy at Amazon Web Services. AWS is a global leader in cloud computing and digital infrastructure and their perspective is central to the growth of our digital economy. Heather, please join us to introduce our keynote speaker.
Opening Remarks by Heather Kay, Head of Digital and Financial Policy, Amazon Web Services
Thank you, Seamus. And good afternoon, everyone. It’s a real pleasure to be here with you at the Empire Club this afternoon. AWS is very proud to sponsor today’s luncheon and I’m honoured to introduce our distinguished speaker. The Honourable Stephen Crawford is the Ontario Minister of Public and Business Service Delivery and Procurement. Minister Crawford oversees the delivery of vital programs and services through Service Ontario, the implementation of consumer protection laws in Ontario, and the development of public policy around cybersecurity as well as groundbreaking technology like AI. He also manages public sector procurement and supply chain operations. In this role, he is ultimately responsible for modernizing Ontario’s public service, including building the digital foundations that will define Ontario’s future. Minister, I’m gonna be honest. I’m not sure it sounds like you have enough time to be at this lunch today.
It’s an exciting and consequential moment for Ontario’s digital economy. AWS is proud to play a meaningful role in helping build modern, innovative, and trusted public sectors, one that serves Ontario with excellence. To date, AWS has invested more than $2.5 billion in Canada, and we are committed to investing another 24 billion by 2037. With data centres across the country in Calgary and Montréal, and two local zones in Vancouver, and another right here in Toronto, we provide services to tens of thousands of Canadian companies and governments across the country, including Ontario. Toronto is home to one of our major technology hubs, which employs over 3,200 highly skilled roles. From software engineers to data scientists, it’s these individuals that are constantly innovating and contributing to the technology ecosystem right here in Ontario. Across the wider Amazon family, we employ over 25,000 people in the province.
As a global leader in digital transformation, AWS has been at the centre of some of the most consequential shifts in how governments and industries operate, and we’ve turned that experience into deep, actionable insights on the key elements of success when modernizing government systems and services. Every successful digital transformation begins with people. Organizations must invest in building a workforce equipped with the skills and capability to harness modern technology like AI. Talent is not just an enabler of transformation, it is at its foundation.
The second critical element is having the right mechanisms to acquire the tools and services that transformation demands. Outdated procurement frameworks designed for different eras are ill-suited to the pace and complexity of digital technology. When procurement fails to keep up, it doesn’t just slow things down, it risks putting the wrong tools in the hands of the people trying to do the work. And most importantly, leadership. At its core, digital transformation is a change management challenge. It requires leaders who communicate a clear and compelling vision, who model the behaviors they expect from their organizations, and who have the courage to drive the cultural shifts that modernization demands. Technology can be procured and skills can be trained, but without strong leadership, transformation stalls.
We are fortunate to have such a leader here today. Minister Crawford has been a steadfast champion of digital transformation and of modernizing Ontario’s public sector. We look forward to his remarks today and his insights on Ontario’s path forward. Please join me, in giving a very warm welcome to the Honourable Minister Stephen Crawford.
The Honourable Stephen Crawford, Ontario’s Minister of Public and Business Service Delivery and Procurement
Thank you very much, Heather. I appreciate that nice introduction. And I did see a few elected officials here today I just wanted to shout out to. I saw MPP Dawn Gallagher-Murphy from Newmarket. I would like to, I don’t know if she could wave. And Lorne Coe. And I saw, as well, I saw a couple of people from my home community of Oakville. Mayor Rob Burton, and Councillor Natalia Lishchyna. I believe they’re in the audience somewhere, so shout out to you. Thank you for coming down to Toronto. And thank you to Seamus Murphy and the Empire Club of Canada for bringing together leaders from across business and government and the technology sector for today’s discussion. Let me also thank our sponsors and partners who helped make today’s event possible, including AWS and Google. It’s great to be joined by so many innovators, entrepreneurs, and the public sector leaders who are helping shape Ontario’s digital economy. I’m also looking forward to my conversation with Bob Courteau, shortly. And I wanna thank the Empire Club for continuing its long tradition of hosting thoughtful discussions about Canada’s economic future.
Today’s conversation about artificial intelligence is exactly that kind of discussion. Because we are living through a moment of enormous technological change and enormous economic competition. I will start out by saying that my staff and I actually did write today’s speech. It was not AI. So, let me make that very clear. But having said that, think about it. We also have to change our thinking, so that even if we didn’t write this speech, does it matter? As long as we humans oversaw it. That’s the whole idea of AI, to make better use of our time. I can still remember my childhood friend’s home phone numbers. But if you asked me for my daughter’s phone number, I’d have to think about it—and even then, I’m not sure I could tell you the number. Our brain adapts to what is more important in the modern world. How many people here, in this crowd of 400 people, could go and hunt or start a fire, if they were thrown into the woods with nothing but the clothes on their back? Or maybe not even the clothes on their backs. But probably zero, or close to zero. We’ve evolved to not spend time dealing with the same issues that our ancestors dealt with.
Today, we are witnessing the most transformative time in human history, right before our very eyes. Over time, humans have evolved from the use of fire, to the wheel, to developing agriculture to industrialization, planes, spaceships, and computers. And now, artificial intelligence. So, let’s just take a step back for a moment. Human intelligence has been compounding at an incredible pace, but now, it’s accelerating even more rapidly—sometimes, I wonder that, looking at TikTok and Instagram, but having said that, human intelligence is compounding at its most rapid pace ever.
To illustrate the effects of this compounding, I’ll just give a few examples here. Imagine if you had a penny at the beginning of the month. In a 31-day month, like March, do you know how much money you’d have, if that penny doubled in value every single day? Most people, without thinking, would guess $100, maybe $1,000, some might say half a million. The answer is over $10 million. Albert Einstein was quoted as saying, “Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn’t, pays it.” Another example of compounding and exponential growth. We all have two parents, four grandparents, eight great-grandparents, et cetera. If we go back to the time of Christopher Columbus, do you know how many ancestors each of us in this room would have approximately? The answer is well over a million. By comparison, each of us would have approximately 256 ancestors, in the year 1800. So, you can see the power of compounding.
And the reason I bring these examples up is to highlight the power of compound computing and artificial intelligence that we are currently witnessing. This era that we live in right now will be much more transformative than the advent of the internet. And that’s why there’s an arms race right now for AI globally, and Canadians and the Western world need to be leading the charge, or we will go the way of the dinosaur and the dodo bird. Across the world, governments and businesses are racing to harness artificial intelligence. AI is transforming industries, reshaping global supply chains, and redefining how economies compete. From advanced manufacturing to healthcare to financial services, AI is quickly becoming one of the most powerful economic forces of our time. And jurisdictions that move quickly, invest wisely, and build public trust, will lead the next wave of global innovation. And those who fall behind will struggle to compete.
So, the question before us today is very simple. How does Ontario win in the AI economy? How do we build an AI sector that is both competitive and trusted? Because in the age of artificial intelligence, those two things must go hand in hand. Innovation without trust slows adoption. Trust without innovation limits opportunity. Ontario must lead in both. The good news is that Ontario starts from a position of incredible strength. Our province is home to the third largest technology cluster in North America. More than 434,000 technology workers call Ontario home. We have 22,500 tech companies operating in our great province, and roughly 400 companies specializing in artificial intelligence and advanced technologies. Our universities and colleges are producing the talent needed to power this sector. In the 2023, 2024 academic year alone, Ontario’s post-secondary institutions graduated more than 86,000 STEM students.
This talent pipeline is one of the reasons Ontario continues to attract major global investment. Since 2020, since 2020, our province has seen more than 16.5 billion in technology sector investment. That includes investment in AI, cybersecurity, quantum technologies, advanced networks, and fintech. These investments are creating jobs. They are strengthening Ontario’s economy, and they are helping position our province as a global hub for artificial intelligence innovation.
But leadership in artificial intelligence does not happen in isolation. It requires collaboration, it requires engagement, and it requires bringing together the people who are actually building the technologies shaping our future. That is exactly why just last week, Ontario convened leaders from government, industry, academia, and broader innovation ecosystem at our Ontario AI Summit. And the goal was very simple, to move from conversation to execution. Across panels and working sessions, leaders discussed how artificial intelligence is improving public services, strengthening Ontario’s economy, and helping businesses compete globally. But just as importantly, the summit focused on the guardrails needed to ensure AI is used responsibly. Because responsible AI development requires more than technical expertise, it requires governance, it requires accountability, and it requires public confidence.
Events like the Ontario AI Summit demonstrate something important. Ontario is not simply reacting to the rise of artificial intelligence, we are actively shaping how it is deployed. And we are doing so in partnership with the innovators, entrepreneurs, and researchers, building the technologies that will define the next generation of economic growth. This engagement is part of an ongoing dialogue with the industry, from technology roundtables, to innovation forums, to discussions with startups, researchers, and venture capital leaders. Our goal is to ensure that innovation and policy evolve together. Because the jurisdictions that do will succeed in the AI economy, and they will connect research, entrepreneurship, and responsible governance. Ontario intends to be one of those jurisdictions.
Our government understands that building a competitive AI economy does not happen by accident. It requires deliberate investment, it requires strong infrastructure, and it requires clear rules that build public confidence. Since 2018, Ontario has invested more than two billion in research and innovation. That includes investments in the Vector Institute for Artificial Intelligence, one of the world’s leading AI research centres. And we’ve invested 750 million to expand STEM programs across Ontario’s colleges and universities. We’ve supported venture capital through Venture Ontario, helping AI and technology companies scale and grow. And we’ve invested in advanced research computing systems, ensuring that researchers and businesses have the computing power they need to develop the next generation of AI tools. These investments are strengthening Ontario’s innovation ecosystem.
But innovation also depends on infrastructure. Artificial intelligence runs on data, and data requires infrastructure. Data centres, cloud computing, fiber networks, and reliable energy systems. Ontario already has a strong foundation. Across the province, more than 80 data centres are supporting our digital economy. The Ontario Public Service itself operates a major data centre in Guelph, supporting hundreds of ministry applications that Ontarians rely on every single day.
But we also recognize that AI infrastructure requires energy. The Independent Electricity System Operator projects that data centres could represent 13% of new electricity demand over the next decade. That is why our government introduced the Protect Ontario by Securing Affordable Energy for Generations Act. This legislation supports our long-term energy for generation strategy, ensuring Ontario has reliable, affordable electricity to power economic growth. Because if Ontario wants to lead the AI economy, we need the infrastructure to support it.
Artificial intelligence is also transforming how governments deliver services. Across the Ontario Public Service, we are already seeing AI tools help improve efficiency and productivity. AI is helping analyze complex data, improve service delivery, and reduce administrative burden for public servants. When used responsibly, AI allows employees to spend less time on repetitive tasks, and more time focusing on the complex tasks that the people of Ontario benefit from.
But as we adopt these technologies, we must ensure they are used responsibly. And that brings me to the most important part of today’s discussion. Trust. AI systems will only succeed if people trust them. Trust that their personal information is protected. Trust the algorithms are used responsibly. Trust that technology is working for the people, not against them. And that is why Ontario has taken a leadership role in responsible AI governance. Our trustworthy artificial intelligence framework sets out risk-based rules and guidance, to ensure that artificial intelligence systems used by government are transparent, accountable, and aligned with public values. And in 2025, our government enacted the Enhancing Digital Security and Trust Act, strengthening cybersecurity protections, and establishing oversight requirements for the use of AI across public sector institutions. This legislation creates a foundation for transparency, accountability, and risk management, when artificial intelligence systems are used by government.
Responsible AI is not an afterthought. It is the foundation of public confidence. When citizens know safeguards are in place, when institutions operate transparently, and when governments can demonstrate accountability, trust grows. And with trust comes adoption. And with adoption comes economic opportunity. No government can manage artificial intelligence alone. Technology moves across borders. Cloud infrastructure spans continents. And innovation happens through collaboration.
That is why Ontario is working closely with partners across Canada and internationally. Last year, federal, provincial, and territorial governments strengthened collaboration on cybersecurity and digital trust to protect critical infrastructure and public services. We are also working with industry, academic institutions, and civil society partners to ensure that AI standards reflect both technological process and democratic values. Because leadership in artificial intelligence requires cooperation across governments, across industries, and across borders. Artificial intelligence will shape the global economy for decades to come. It will transform industries, create new opportunities, and challenge governments to adapt faster than ever before. Ontario has the talent, we have the research institutions, we have the companies, and we have the infrastructure to lead. But leadership also requires trust. Trust from citizens, trust from businesses, and trust from global partners.
Our goal is simple, to build an AI economy that is both competitive and trusted. An AI ecosystem that attracts investment, creates jobs, and delivers real benefits for the people of Ontario. If we get this right, Ontario will not just participate in the AI revolution. We will help lead it. As Charles Darwin said, “It is not the strongest species that survived, nor the most intelligent, but the one most adaptable to change.” I submit to you today that Ontario will lead that change not only to survive, but to thrive into the future. Thank you very much.
Seamus Murphy
Thank you, Minister Crawford, and thank you to Heather, and AWS. Now, before we get into the conversation, I would like to recognize our Lead Sponsor, Google, for their leadership in this space. Google has been at the centre of the AI conversation for years, pushing the boundaries of what is possible, while advocating for responsible development. It is my pleasure to invite Jeannette Patell, Director of Government Affairs and Public Policy at Google, to introduce our moderator.
Introduction by Jeannette Patell, Director, Government Affairs & Public Policy, Google
Thank you, Seamus, and thank you, Minister Crawford, for those inspiring comments, and for your leadership. It’s an honour to sponsor this vital discussion on building trust and competitiveness within Ontario’s AI economy. At Google Canada, we know that we have our part to play in building that trust and enabling businesses in Ontario to be competitive here at home, and abroad. This year, 2026, marks Google’s 25th anniversary in Canada. From a single employee in 2001 to thousands of Googlers in Toronto, Kitchener, Waterloo, and across Canada today, we’ve been integral to the growth of Ontario’s tech ecosystem. We believe our shared future is bright, a future where AI tackles our greatest challenges and unlocks unprecedented opportunity.
At Google, our approach is guided by the principle of being both bold and responsible. Progress requires a foundation of trust. Last month, we released our 2026 Responsible AI Progress Report, detailing how we mitigate frontier risks, to ensure AI is a tool for good. We already see AI delivering global benefits, from forecasting catastrophic floods to decoding the human genome. However, true trust isn’t built in a lab. It’s built in our communities. The promise of AI depends on widespread adoption, refined skills, and most importantly, investing in people. And that’s why we’re prioritizing local investment. Through our AI Opportunity Fund, we partner with hubs like the Toronto Public Library and Skills for Change, to provide essential workforce training. We’re also investing in the minds that are shaping tomorrow. This includes the Google Chair in the Future of Work and Learning at the University of Waterloo, and a $10 million investment in the Hinton Chair at the University of Toronto. This tribute to Dr. Jeffrey Hinton ensures top AI talent continues to thrive here in Ontario.
We know that building this future is a collective effort, whether it’s small businesses using Google’s AI tools to reach global markets, or large companies and government agencies relying on secure Google Cloud tools to solve complex challenges with total data protection. It requires a partnership between industry, academia, and a forward-thinking government. And that’s why we’re so pleased to be here today, and to hear from the minister who’s carrying forward this mission, this mission of partnership for the government of Ontario.
And with that, it’s my honour to introduce the fireside chat portion of today’s program. Joining Minister Crawford on stage is Bob Courteau. Bob is an accomplished senior executive and the current Chair of Kinaxis, bringing extensive leadership experience from his roles as CEO of the Altus Group, and President of SAP North America. I think it’s safe to say he knows a thing or two about the topic at hand. So Bob, I welcome you to join us on stage, and thank you everyone, enjoy the conversation.
Bob Courteau, Board Chair, Kinaxis
How we doing? Can you hear me okay? Great. Ah, well, this is a great day to be in Ontario, isn’t it?
The Hon. Stephen Crawford
It is.
Bob Courteau
This is a super opportunity for me to share my views on where artificial intelligence can take us as employers, as individuals, in shaping the future for our country, and particularly for Ontario. I feel really good about the opportunity. Thanks for inviting me. Arms race. Probably a good way to describe it. But for me, I actually believe this creates a reset for Ontario, and for companies like Desire2Learn, D2L, and Kinaxis, where I’m involved. Because AI done properly creates a new opportunity for every industry, for you as an individual, and for the companies that you’re involved in. And doing it from Ontario, the way you described it, is a significant opportunity.
And I’m not gonna talk too long, because I wanna hear more from Minister Crawford, but a couple of thoughts on this. I don’t know if I’m an expert on AI, I’ve been kicking around it for about six years now, all the way back to machine learning. As an investor, I was an advisor to private equity companies in Canada, the US, and Europe. I find myself absolutely believing that AI can make me more productive as an individual. And for Desire2Learn in Waterloo, this is a company that is changing education around the world, and growing at a pace and in a way that they’re making a difference for the way people learn, and I love it.
And then at Kinaxis, I think Minister Crawford told me, how come more people don’t know about Kinaxis? And I think it was a really good question. The reason for that is we are a global company that is dealing with the most important organizations in the world. We’ve gone about our business to create a organization now, a company, that is leading supply chain planning globally.
I’ll talk a little bit about this, but just one data point. In the last quarter that we just announced, we signed an agreement with the largest semiconductor company in the world, the second-largest oil and gas company in the world—very topical, given what’s going on—the largest storage company in the world, and a company that is the largest manufacturer of robotics in the world. Last quarter. And every one of them chose us over some of those names that you have heard about, Palantir, Solonus, O9, even companies like Blue Yonder, that have long history in supply chain. And we’re winning because of the investments that we made in AI that differentiate our underlying technology. And this is an Ontario company.
And so, what happened was about—I’m just gonna get my notes here, so I follow this properly, and it is working, fantastic. About a month ago, Minister Crawford visited us in Ottawa. And you know, you have somebody come in, talk a little bit about where the company is trying to go, how it fits into the global ecosystem with AI. But then we got in this whole conversation about collaboration, and working together. And I really have told everyone to absolutely get rid of any skepticism that you might have about doing business in Ontario. I believe with Minister Crawford, and some of the things that we have as an underlying advantage in Ontario, that this is our time. This is a really strong opportunity, and we’re gonna try and do it together.
But before we get into it too much, let me start with a little bit of a background question. So, tell me a little bit about yourself, and how you got into public service. Let’s start there.
The Hon. Stephen Crawford
Sure. Sure. Well, thank you very much. And actually, it was also good to see that I saw Toronto Star was one of the sponsors today. So, I thank them for that. And I’ll start my story there, because my initial interest in politics and government goes way back to the days when the kids used to deliver newspapers. I used to deliver the Toronto Star. So, that was my first job. So, thank you, Toronto Star. And I would sit in the garage, put all the sections of the papers together, and just, I couldn’t stop reading it. I was always late getting it out to the customers’ homes, because I would just sit there and read it, and be involved and interested in public affairs and government. And I think that’s how I actually became a Conservative, as well. So, I thank the Toronto Star for that. Some things never change. As much as I respect the Toronto Star, I don’t think that’s changed, in terms of where their outlook is. But I do appreciate they gave me the opportunity. And ever since then, I’ve had an interest. I went into the private sector for over 20 years. And at that time, I took a look around, and I thought this province, this country, really needs more people with managerial and business experience to put it on a better track. And that’s, to make a very long story short, this is my way to give back to this great province and country that I love, was to serve the public.
Bob Courteau
It’s fantastic. And inside the ministry, I’ve had a chance to meet with some of your team and they are innovating. They’re thinking about the future. But I thought only the IT industry had a lock on acronyms. But you have something called an MPBSDP that is changing a little bit about how we think about procurement and AI. So, tell us about it.
The Hon. Stephen Crawford
Yeah, absolutely. So, my ministry, it is a bit of a mouthful, the Ministry of Public Business Service Delivery and Procurement. I just remember peanut butter sandwich delivery, that’s the best way to remember it, because it’s a mouthful even for me, and I’ve been here a year. Is actually the largest direct employer of government employees. So, there are larger government ministries in Ontario that have larger budgets—obviously, healthcare being number one, education being number two—but in terms of direct employees within government, we are the largest ministry, because we cover so many diverse areas, as you alluded to. So, we’re responsible for all the consumer protection in Ontario, and that flows through our ministry, but also indirectly through 12 regulated administrative authorities that report to us. We also are responsible for all the Service Ontario’s where you get your marriage certificates, birth certificates, et cetera. We’re responsible for AI and digital government, and that includes all the IT within government and implementing AI within the public service but also any legislation pertaining to AI, where we put guardrails up. And I should also add on that point, as well. We just hired just a few weeks ago our first ADM, it’s Associate Deputy Minister level, an AI ADM who’s gonna build a SWAT team of AI experts, and go and look through all through government, and see where we can utilize AI more efficiently. Because while we’re using it, and we’re probably the leader in Canada, there’s a lot more we can do.
And then finally, I’m also responsible, we’re also responsible for procurement as you alluded to, as well. So, it’s a very diverse ministry. It keeps me busy, but it’s exciting.
Bob Courteau
A lot, it really is. Tell us a little bit about Bill 194, as well, which is enhancing digital security and the trust act. I think it’s, you know, I’ve had a chance to listen to where you’re trying to take that, but it’d be good for the audience to hear a bit about where you’re going.
The Hon. Stephen Crawford
Sure. Before I became minister, we passed Bill 194, which is really the gold standard for the responsible use of AI in Canada, ensuring that the public sector and the broader public sector use AI responsibly. AI we can trust, and AI that is not in secret. I think that’s key, as well. When you’re utilizing AI in the public service, people need to know it’s AI, not AI in secret. And AI that’s benefiting the people of Ontario. And that’s, again, this really affects the public sector and the broader public sector.
Bob Courteau
That’s great. Listen, I have to do a shout out here for Google and AWS. Google uses Kinaxis to run their whole and plan, their whole supply chain around their global IT infrastructure. So, that’s great. And then over at Amazon, Amazon Robotics is one of our really leading innovator customers that is using Kinaxis to actually change the way robotics are working. So, I had to do that, given that you guys sponsored. And if there’s any other global companies out here that would like to be a Kinaxis customer, you probably already are. So, you know, I definitely wanted to do that. So….
The Hon. Stephen Crawford
Exactly. And as the government of Ontario, by the way, too, we welcome investment from companies, all companies from around the world. There’s a sign, when you enter Ontario from Québec, or Michigan, or New York, that says “Open for Business.” So that is the mainstay of our government. We are open for business.
Bob Courteau
You know, yeah, that’s—please. I honestly believe that this is so critical to this conversation. Of course, we can do it alone. But if I can do it in collaboration to build on the strengths of being, operating our business in Ontario with the graduate rates that you’re talking about, that’s fantastic. But if we can share, learn, and develop opportunities together with the government, I think that’s what’s going on around the world. You don’t have to look far, the United States, to see how they’re getting involved in supporting and pushing their assets forward. So, more of that would be great. So, look, AI is really changing everything. Tell us a little bit about the Ontario government. How do you think about it? What are some proof cases that you could talk about?
The Hon. Stephen Crawford
Yeah. So, within the Ontario Public Service, as I mentioned, we are a leader within Canada, in terms of utilizing AI in the public service. And we’ve got over 15,000 public servants now using AI weekly. So, that’s a good number, and it’s growing. We’re finding on average, at this early, early date, that they’re saving about three hours per week on average to be able to go into better performing tasks. So, we’re pleased with the initial outlay of AI. But I should add that we are at its infancy, and that’s why we’ve hired this new ADM, Stephen Burt, who comes from Ottawa, actually, to build the AI SWAT team to go throughout government and see, because I think we’re not even in the first inning. We’re still in the pregame of what we can do with AI.
And you know, although we’re a leader in Canada, I do think that our province, our country as a whole, is lagging in AI adoption. That is an issue. If you look, for example, even south of the border in the US, they have an AI adoption rate—and this goes for private sector, by the way, too, it’s not just public sector, it’s actually private sector. The AI adoption rate is double what it is in Canada, and that’s including private sector. So, we have a bit of an issue in this country in that we are a home of AI. In fact, AI was created here, at the University of Toronto. We have the third-largest tech cluster in North America right here in Ontario, especially between Canada, Ottawa, GTA, and Waterloo. And we have such a talent pool of schools and universities, yet our adoption on average is half of what it is of the Americans. And that’s why there’s been a productivity gap, as many people know, between the US and Canada over the last 10 years, which is widening. We need to change that rapidly. And AI is going to be a major part of that.
Bob Courteau
I agree with that. And I think the barriers to using AI are so low that, again, in my construct of a reset, that’s why it’s so important that we educate all industries about what is possible. And frankly, all industries are gonna be under pressure to the competitive realities of their competitors using AI. Look, staying with the theme, the other thing that has been really interesting that Kinaxis is that I think our differentiation, part of the reason that we’re able to compete against Palantir, and some of these other companies that wanna come into our place—and you hear me using arms race kind of language here—is that we committed to R&D. And six years ago, seven years ago, I’ve been on the board for eight years, we doubled down, we signed partnerships with some of the universities in Ontario, we did co-ops. But we have a dedicated team that is using and developing solutions for AI— 46 patents around AI and supply chain. We’ve come out with products that were first to market. We integrate those products for customers in a way where we can do pilots in a very different way. We just did one for one of the biggest oil and gas companies in the world, where they’re trying to optimize their shipping capability.
And the reality is that if we’re in a place in Ontario where we can be that company, and get access to the kind of talent that’s coming out of university, we can absolutely be globally competitive, and we’re proving it over and over. And you know for me, as this AI economy grows rapidly, what’s the government, how do you plan to ensure competitiveness, while maintaining public trust? Like that’s a really, you talked about it, but that’s a really tricky balancing act. We’re just going for it. You’ve got a bigger challenge.
The Hon. Stephen Crawford
Yeah, you’re right. It is a bigger challenge. And I mean, trust, I talked about it in my speech, you touched on it right now, but if there is one word that we can remember from today, in terms of success with AI, it’s trust. I mean, if you go back, our province, our country, and in fact, Western civilization has succeeded because of that one word, trust. People wanna know when they buy a home, when they go to the convenience store, that they have a safe product, they have safe milk, that they drive on roads that are safe, that are cars that are safe. They want a very safe technology highway, and they want safe AI. This is absolutely critical, and government does have, and needs to have a role in creating that environment. So Bill 194, again, the gold standard for the broader public sector and the public sector laid a foundation in that.
We’re gonna need the private sector to collaborate, as well. Just earlier this week, actually, I was on a call with Minister Solomon and other provincial ministers, and we were discussing, he had a conversation earlier that week, this week with the gentleman who’s the head of OpenAI, just regarding the AI chatbot and the tragedy that occurred out in British Columbia, where the individual involved was, I guess, communicating with the AI chatbot and they had not notified security. So, these are issues that are on the table right now that we don’t have all the answers to. We need a cross-collaboration of government, business, academia, civil society to put our brains together to think about how we can deal with these. These are the kinds of issues that are gonna be coming up more and more.
Again, we’ve laid a groundwork for public sector, broader public sector, of some lanes to stay in, but there is a lot more to do. But we need to move quick, too, because this is evolving so quickly. So, I challenge everybody to participate in that discussion.
Bob Courteau
For sure. Now listen, no one has gone online and asked a question, and we’ll try and sneak one in here. But I know a lot of the people in this room, I’m shocked that we haven’t had one come up here. So, let’s see if we can get a couple of questions going, if we have time here. So, I know what my arms race is, I described a little bit. But you’re in an arms race for investment…
The Hon. Stephen Crawford
Yeah.
Bob Courteau
…for helping companies, for making sure that this is a place where people wanna come. How are you thinking about that?
The Hon. Stephen Crawford
Well, absolutely. It’s an arms race in multiple facets. So, number one is just setting up the legislative framework. Number two is in attracting AI talent and investment in the province of Ontario. We do have, as I mentioned, the third largest tech cluster in North America here. But AI impacts every single individual, every single company, whether you’re a restaurant in downtown Oakville, or whether you’re the Royal Bank of Canada. If you’re not using AI effectively, and adapting quickly, you will be a dinosaur within a few years. That’s the magnitude of it. So, the AI arms race is here.
So, our goal as the government of Ontario is to make sure that we have the power that’s gonna be needed to power all these data centres, and all the computing power that’s needed. And by the way, on that front, we are leading the charge across not only Canada, but indeed globally, with our Small Modular Reactors, which we’re building right here in the province of Ontario.
So, having the right energy, having the right business environment as a government, we’ve never raised a tax since being in power in 2018. That is key, because we wanna have a business-friendly environment in this province. We want people and businesses to be able to move here, and not be taxed to death. So, there’s a lot of parts to the equation, but at the end of the day, we wanna be a business-friendly environment. In order to do that as a government, you don’t need to utilize AI, but you need to create that framework for business and investment for all companies, because all of them are gonna be participating with AI. So, having that business-friendly environment, I think is absolutely critical.
Bob Courteau
I really appreciate that perspective, and it’s really good to hear how carefully you’re thinking through all of this. And for me, this construct of creating an environment that’s rich and growing, but doing it in a way that is responsible creates that differentiation, creates that opportunity for us. So look, I think we got, it’s easy to say these are turbulent times. How are you thinking about, you know, the things that are going on with the United States, and how do you see Ontario using AI to navigate these trade winds? Does that play into it at all?
The Hon. Stephen Crawford
Absolutely. I mean, we’re thinking about issues that we really didn’t even, we didn’t really think about a few years ago. Data sovereignty, there’s data residency, which is having the data in Ontario, but data sovereignty is another issue of making sure that other countries can’t access our data. I mean, this is the new arms race. Information and controlling that information is key. We see it with what’s happening down south. Now, listen, we’re neighbours, and you know, I think it’s 75 or 78% of our exports go to the US. That’s not gonna drop dramatically, nor should it. But having said that, we do need to be more self-sufficient.
And there’s a silver lining in everything that’s going on with our tariff situation with the US, in that I think, number one, I think Ontario, specifically, and Canada in general, can be seen as a trusted partner around the world. So, I think there’s opportunities more than ever for Ontario companies to export. I was actually in a meeting in Waterloo with the senior business leader of a well-known Canadian company. He apologized for being a little late. He was on the phone with a government in Africa, and they wanted to use this company’s services, because they’re not American. They have a trust in Canada. So, I think every business should take that to their advantage and use that. There’s a level of trust there.
Also, having said that, I think Ontario is very well positioned. There is no jurisdiction in the entire world that has what we have, and I’ll explain. In Ontario, we have an incredible technology ecosystem, 450,000-odd workers, incredible companies from all over the world, and Canadian companies operating between Toronto, Canada, and Waterloo, in particular. So, an incredible talent pool in technology and innovation, first. Second, we’ve got an incredible manufacturing hub. We have, in fact, in the last 10 years, experienced the manufacturing renaissance here in Ontario, brought tens of thousands of new jobs in manufacturing.
Now, the previous government thought manufacturing was a thing of the past. We don’t need to go there. And nothing could be further from the truth. Since COVID, and people wanting to offshore—but also secondly, manufacturing’s changed in that 10, 20 years ago, it was all about getting cheap labour. You had thousands of workers, and you went to cheap labour, so you went to India or China for that cheaper labour, and then ship it over. Well now, you don’t need that many workers. You need less workers, but you need more highly skilled workers that generally are more technology fluent. So, that’s brought about a manufacturing renaissance, not to mention the offshoring with COVID.
So, technology, manufacturing, finance. I’m sure there’s a lot of people here from the financial sector. That’s my background. Toronto is a global financial hub. It’s second-largest financial hub in North America, one of the largest in the world. We’ve got the Toronto Stock Exchange. We’ve got some of the major banks in the world, mutual fund companies, pension funds, insurance companies, incredible talent pool of financial people.
Fourth, we’ve got critical minerals like nobody else. We just had the PDAC conference. I was at that last week. The largest annual mining conference in the entire world, right here in Toronto. We have the minerals and metals that people need, that AI needs. So, that’s important.
And finally, fifth, we have energy. We have an abundance of energy. We’re building more, and we do it very clean and efficiently. And we’re building on the Small Modular Reactor. Minister Steven Lecce is responsible for that. He’s doing a great job. We’re building here, but we’re also exporting that technology.
When you put those five spokes together, there is nobody on the planet that has all that. Think about it. New York has finance. California has tech. There’s some manufacturing in parts of the States. But we’ve got all five components needed. Now, having said that, we are blessed. But what is needed, what is critical, is making sure a government doesn’t get in the way of the success. That it creates the platform for success. That it creates the environment. Nothing is taken for granted. There are many failed states and jurisdictions that have plenty of natural resources, and whatnot. We’ve got it all in Ontario. Now is our opportunity to shine. And I’m confident more than ever that we will come out of this current turbulent times we’re in stronger than ever.
Bob Courteau
Okay. You can’t come to an event like this without one pro tip. I was just in Denmark doing business. That is a really great place to go, if you’re Canadian, because of what’s happened in Greenland. You put your Canadian flag in. It’s like, let’s go. So, I think we’re going to see more and more of that, as we go forward. Look, we’re not on different tracks. The business community and the government are together. We can collaborate. We can find a way to do better. And we shall. And I personally have made a commitment to Minister Crawford to help, to support, to make things happen, because it’s good for Canada and it’s really good for Ontario. Why don’t you bring us home with some final remarks?
The Hon. Stephen Crawford
Yeah, thanks, Bob. Again, I just want to reiterate that, you know, the turbulent times we’re facing right now is a silver lining. I believe we will come out stronger than ever. But it’s up to us to make it happen. It’s all hands on deck right now. We need everybody, all hands on deck, to work together, go to our strengths, adopt new technologies, work together, support our businesses. And we’re going to come out of this stronger than ever.
Bob Courteau
Well done. Thank you.
The Hon. Stephen Crawford
Thank you.
Seamus Murphy
Thank you, Minister Crawford and Bob Courteau, for such a sharp and practical look at how AI is being deployed to solve complex challenges in our economy today. While policy sets the framework, the innovation happening right here in Ontario will determine our success on the global stage. Thank you again to our panellists, sponsors, and of course, to all of you for joining us. I’d also like to take a moment to recognize the students and young leaders joining us today. Their presence is made possible through our charitable arm, the Empire Club Foundation, and the generosity of our donors. This support enables us to invite future leaders to take part in today’s dialogue and to empower them to turn knowledge into leadership that shines in communities, boardrooms, and national conversations shaping Canada’s future.
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And I hope you’ll join us for two exciting upcoming events. On April 8th, we will welcome Eric Chassard, President and CEO of Bruce Power. He will outline how nuclear innovation and major life extension projects are positioning our province as a clean energy superpower. And then on April 24th, we will host the Honourable Tim Hodgson, Minister of Energy and Natural Resources, in a conversation with Lisa Raitt. One year into the new government’s mandate, the minister will discuss the strategic push to get our country building again through major infrastructure and critical mineral projects. Tickets for both events are on sale now.
As always, and as a club of record, all Empire Club events are available to watch and listen to on our website. The recording of today’s event will be available shortly. Thank you for being a part of today’s important conversation, and this meeting is now adjourned.
