What Canada Must Do to Compete in the AI Economy

Canada has the chance to lead the next wave of global innovation. But the question is: Will it?

On a recent episode of the Business Data Lab podcast Canada’s Economy, Explained, Capgemini Canada’s Tom Mosseau and Franco Amalfi joined host Marwa Abdou for a deep conversation on the intersection of AI, sustainability and digital readiness. The timing is no coincidence — Canada currently holds the presidency of both the G7 and B7 and hosted the 2025 G7 Leaders’ Summit.

Capgemini is a global leader in tech-enabled growth, and both Mosseau and Amalfi brought serious insight to the table.

“Legacy infrastructure, skills shortages and investment hesitancy are still holding Canadian businesses back,” said Mosseau. “Especially in finance and manufacturing, where older systems are harder to modernize.”

He also noted a troubling trend: While 61% of Canadian companies believe generative AI could reshape their business strategy, only 28% are actively implementing it — and only 12% are tracking its environmental impact.

“Artificial intelligence may offer huge business value, but at what environmental cost?” Mosseau asked. “Most executives aren’t even measuring emissions.”

But there’s a way forward. And it’s not just about moving faster — it’s about moving smarter.

“We believe generative AI can be both a hero and a threat,” Amalfi explained. “The difference is whether we use it responsibly.”

Capgemini’s answer is a framework they call “responsible by design.” That means:

• Assessing energy use during model training.
• Prioritizing smaller, more efficient AI systems.
• Designing AI strategy from the beginning — not after problems arise.
• Integrating renewable energy wherever possible.

“We’ve built what we call sustainable AI factories,” Amalfi said. “They ensure sustainability is part of every step — from design to deployment.” They’re also working directly with clients to help meet net-zero goals and minimize environmental impact across the board.

This is more than an IT issue — it’s a competitiveness issue. According to Mosseau, Canada’s lack of investment in digital infrastructure and workforce reskilling is putting its economic future at risk.

“We need a coordinated national strategy,” he said. “Government, industry and civil society have to work together. Private companies can’t do this alone.”

Canada already has strengths it can build on: renewable energy, smart agriculture, sustainable forestry. Capgemini believes AI should be focused in those sectors to accelerate both innovation and economic growth.

One final message came through clearly: Consumer and market expectations are shifting. And companies that fail to factor in sustainability, transparency and digital capability will fall behind.

“Sustainability isn’t optional anymore,” Amalfi said. “Consumers are demanding it, and companies that adapt will be the ones that thrive.”

Key takeaways

1. Canada is falling behind global AI leaders due to low investment, lack of regulation and skills shortages.
2. Small businesses face the biggest barriers, from funding to finding qualified talent.
3. Without a national AI strategy, Canada risks losing ground in a tech-driven economy.