Author: Ontario International, Trade & Investment Offices in California and New York.
As Canada’s largest and most economically robust province, Ontario is once again leading the charge in economic growth and innovation. Across the province, dynamic Artificial Intelligence (AI) ecosystems cultivate opportunities for global investment.
"The unique triple helix model partnership between the provincial and federal governments, industry and academic institutions has been a unique dynamic shaping the world leading AI ecosystem in Ontario."
The roots of AI in Ontario run deep, spanning over three decades to the groundbreaking work of Geoffrey Hinton, the esteemed scientist from the University of Toronto who pioneered neural nets. Today, Ontario stands proudly at the epicentre of an AI-enabled future, boasting over 400 AI firms and institutions actively shaping a better tomorrow. This momentum is not serendipitous but rather fueled by substantial investments driven by world leading AI research from provincially funded educational institutions such as the University of Toronto, consistent provincial and federal investments in AI, along with industry investments in AI. The unique triple helix model partnership between the provincial and federal governments, industry and academic institutions has been a unique dynamic shaping the world leading AI ecosystem in Ontario.
Critical Technology Initiatives: Accelerating Ontario’s Innovation Drive
In 2022, Ontario strategically injected over $106 million CAD into vital technology initiatives geared towards driving economic growth. Central to this funding is the Critical Technology Initiative (CTI), a program designed in collaboration with not-for-profit organizations to advance technology development, commercialization, and adoption across key sectors crucial to Ontario’s future, including AI, quantum, blockchain, cybersecurity, and robotics.
The CTI program tactically channels funding to multiplier-type institutions such as the Vector Institute and the Ontario Centre of Innovation (OCI), alongside Ontario Vehicle Innovation Network (OVIN) and 17 Regional Innovation Centres(RICs), all of which play a key role in enhancing the potential of high-growth companies.
"Additionally, through the OCI, the province has accelerated industrial innovation with the launch of the Critical Industrial Technologies Initiative (CIT). This initiative is dedicated to integrating critical technologies such as AI, blockchain, and quantum into key sectors to help foster further advancements."
Additionally, through the OCI, the province has accelerated industrial innovation with the launch of the Critical Industrial Technologies Initiative (CIT). This initiative is dedicated to integrating critical technologies such as AI, blockchain, and quantum into key sectors to help foster further advancements. For example, the Ontario Bioscience Innovation Organization (OBIO) will receive up to $9.7 million CAD to facilitate the adoption of critical technologies in the life sciences sector and improve sector competitiveness, while $14.9 million CAD will be allocated to the Waterloo-based Quantum Valley Ideas Lab (QVIL) to accelerate quantum science development and focus on growing Ontario’s talent in quantum technology.
These strategic partnerships and investments have yielded promising economic returns, totaling $13.9 billion CAD in investments over the last three years.
Ontario’s Diverse AI Landscape: From Startups to Global Leaders
Ontario’s AI activity is anchored around the ‘Vector Institute’ and Toronto-Waterloo’s booming AI hub with the highest concentration of AI startups globally enabling automated analysis of med-imaging, real time decisions across all sectors, high efficiency communication, smart sensors, smart mining, live translation, speech recognition etc.
Ontario has transformed into a world leading AI hub of talent with 1,503 AI Masters enrollments and 1050 AI Masters graduates in 2022. This in-demand talent pipeline provides essential AI skills to 1,750 AI and AI-related technology companies that have created 20,634 high-paying jobs Ontario-based AI firms are also making significant strides in the self-driving car industry. Waabi Innovation Inc., founded by Uber’s former self-driving car lead and University of Toronto professor Raquel Urtasun, has developed an AI brain and a virtually simulated world to expedite the testing of self-driving cars.
In addition to Ontario enterprises, multinational Bosch, Sanofi, Roche, Cerebras, NVIDIA, LG, Autodesk, Meta, Google Brain, Samsung, Adobe, Fujitsu, EtsyM Unilever, etc. launched AI Centres of Excellence or AI Labs in Ontario to scale innovative solutions. NVIDIA, for instance, houses a Toronto AI lab dedicated to research in computer vision, graphics, and machine learning, collaborating closely with the Vector Institute to push the boundaries of AI research. Similarly, Google has partnered with the University of Toronto and Vector to build its Google Brain facility in Toronto, reaffirming Ontario’s global leadership in AI innovation.
Tech Innovation Hotspots: Toronto-Waterloo Corridor and Beyond
These investments have cemented Ontario, particularly Toronto, as a premier global hub for AI innovation. In fact, last year, commercial real estate services and investments group CBRE ranked Toronto fifth in North America for its allure to companies seeking tech talent and employment opportunities for tech workers.
While Toronto remains a magnet for AI companies, other Ontario cities have also been experiencing remarkable growth in the sector. Ottawa, ranked #2 in Canada for overall tech talent and #10 across North America, boasts an even higher concentration of tech talent than Silicon Valley – a whopping 11.6 percent of all jobs in the market. Invest Ottawa’s IO accelerator program has also played a pivotal role in nurturing early-stage tech ventures, such as fundmore.ai, which utilizes machine learning to streamline the pre-funding process for loans.
Further west, Waterloo Region ranks as the fifth highest concentration of tech talent in North America. The Waterloo AI Institute, a joint venture between the University of Waterloo faculties of engineering and mathematics, has over 230 researchers driving innovation across various fields, from disease detection and treatment to vehicle navigation. Additionally, the University is a key partner in the $290 million CAD SCALE.AISupercluster, an industry-led consortium dedicated to boosting Canada’s leadership in applied AI.
Nurturing Talent: Ontario’s Investment in Human Capital
"Ontario boasts the largest IT talent pool in Canada, with over 420,000 skilled workers, representing nearly half of the nation’s workforce in the industry."
Ontario boasts the largest IT talent pool in Canada, with over 420,000 skilled workers, representing nearly half of the nation’s workforce in the industry. With 71 per cent of adults holding post-secondary education credentials and approximately 65,000 STEM graduates entering the job market annually, Ontario offers a robust talent pipeline for tech companies.
To further support job growth and talent development, Ontario has implemented innovative programs such as the Skills Development Fund and the Canada-Ontario Jobs Grant. These initiatives provide direct financial assistance to employers for workforce training, ensuring that businesses have access to the skilled professionals they need to thrive. Additionally, the Micro-credentialing Strategy program enables workers to upgrade their skills for in-demand jobs, while the Ontario Online Learning Consortium (OOLC), also known as eCampusOntario, facilitates online learning opportunities, including specialized courses in AI and other emerging technologies.
Driving Research and Innovation: Ontario’s Tech-Forward Approach
Over the next three years, Ontario is slated to invest $18 million CAD into bolstering the province’s Advanced Research and Computing (ARC) facilities, ensuring they adequately meet the burgeoning storage and computational demands for AI research and other critical technologies. Additionally, a substantial allocation of $47.4 million CAD will be directed towards modernizing aging ARC systems at prominent institutions such as the University of Toronto (Niagara Supercomputer) and the University of Waterloo (Graham Supercomputer). These systems play an indispensable role in driving technological innovation, providing crucial support to thousands of researchers, facilitating the development of numerous patent applications, and catalyzing the launch of countless tech startups.
The Current AI Landscape: Ontario’s Economic Surge
"According to Vector Institute’s latest Ontario AI Snapshot, the province has witnessed the creation of 22,458 AI-related jobs, with over a third offering salaries exceeding $85,000 CAD per annum."
According to Vector Institute’s latest Ontario AI Snapshot, the province has witnessed the creation of 22,458 AI-related jobs, with over a third offering salaries exceeding $85,000 CAD per annum. This signifies a remarkable 210 percent increase compared to the previous year. Investment in Ontario AI experienced a substantial surge in 2021-22, with venture capital inflows reaching $2.86 billion CAD, marking a staggering 206 percent increase from the preceding year. Furthermore, during this period, 50 companies chose to relocate their operations to Ontario, highlighting the province’s appeal as an AI destination.
Ontario represents a compelling market opportunity, with 51 percent of business executives acknowledging the pivotal role of AI in achieving their objectives and incorporating formal AI strategies into their business plans. Additionally, 56 percent of Ontario companies currently offer AI products or services, while an additional 44 percent plan to integrate AI in some capacity over the next two years.
Looking Ahead: Ontario’s Path to AI Excellence
Ontario’s commitment to AI innovation, coupled with its abundant talent pool and conducive ecosystem, positions the province as a global frontrunner in AI-driven technology. With ongoing investments and collaborations from both publicand private sectors, Ontario is primed for sustained economic growth and technological breakthroughs within the AI domain. Whether it’s optimizing road systems or revolutionizing legal document extraction technology, Ontario continues to lead the charge as one of North America’s foremost hubs for AI and technological advancement.