Insight ON Why Canada’s AI Adoption Lags — Despite Producing World-Class Talent

Audio transcript:

Why Canada’s AI Adoption Lags — Despite Producing World-Class Talent

Reem Gedeon (00:02):

Let me just be unapologetically, you know, bragging about a couple of things. More than 10%, I think of the top tier AI research talent globally. We hold that from a Canadian perspective, so we create the talent, yet we don't retain it. We fundamentally keep exporting our talent to other places where there's bigger opportunities, where there's massive investments.

Jillian Viner (00:30):

Welcome to Insight on, if you're making technology decisions that impact people budgets or outcomes, you're in the right place. I'm your host, Jillian Weiner. How does a Canadian business leader succeed in an AI defined global economy without sacrificing sovereignty, speed, or strategic control? That's the question I put to Reem. Gedeon, SVP and General Manager of Insight Canada, reams background spans public sector, enterprise technology, customer services at global scale. So she really understands the different perspectives of IT decision makers. She's also a big advocate for high performing teams, and as you'll discover, very passionate about the success of her home country. Let's go. I think the conversation that I'm really fascinated about right now is the shift in the productivity conversation. And I think if you go back to early days of AI adoption, we sort of put out this utopia future of AI can help us get our jobs faster, and that way we'll have more time for the things that we enjoy. And really what we're seeing, which no one should be surprised about, is that yeah, we're getting more done faster, but we're just filling up that time with more work.

Reem (01:48):

Yeah, yeah. But it's, the question is, is that work the same type of work? If you think about if it's a grind, whether that work is something that you're enjoying to do better, but I do think fundamentally, we always find ways to, uh, fill calendars and meetings. I don't think we've achieved yet that productivity that we keep claiming. However, I feel we all have figured out how to be faster in certain things, uh, maybe improve the quality of our outputs. Um,

Jillian (02:23):

Yeah, you're a big fan of Ethan Molik, so I know that you're, you believe what his philosophy is, right? Yes. Is that it makes you stronger, it unlocks capabilities that you wouldn't have before.

Reem (02:33):

Yeah, I huge. If you think about specific tasks, I'm not sure how you leverage ai. Uh, but for me it's really everything around the speed from research to decision making helps me make decisions faster. Hmm. It does not replace my judgment on things. It does not replace how I make a decision, but it arms me with the information in a way that allows me to make faster decisions. Um, I also, I'm a better communicator or ask my team . Mm-hmm . But truly I feel that, uh, even when I create the communications or updates or all hands and decks and things that we do to make sure that, that the team is aligned to strategy where we're going, um, I leverage AI to help me understand, do I have blind spots? Am I reaching what matters the most to the team? Mm-hmm . There's so many things, uh, exciting time about how we can take this as a massive opportunity to improve human potential. Yeah,

Jillian (03:41):

I agree. I think that blind spot conversation is a big piece, and we know that communication is the core of of business, and it's amazing how much gets misunderstood or lost in translation. I'll give you one of my favorite use cases right now is when I have to present to a group. Yeah. We record almost everything these days. Not just because we can, but because a lot of times we've got people that are different schedules, time zones, et cetera. I will take that transcription and, or I'll take the whole video because Gem and I can read videos now, so I'll give it the video. And I have a very long prompt that essentially asks, review this and give me like, where did I do? Well, give me executive coaching. Where did I do well? Where do I need to improve? Give me inner monologue of the people that I'm speaking to. And it does, and of course, you know, maybe it's not a hundred percent accurate, but it does open your eyes to a different way of perceiving what actually happened and what got communicated.

Reem (04:37):

You get honest, direct feedback as long as you're telling the prompt to be objective and not to humor you.

Jillian (04:44):

That's right. That's right. You do have to tell it like

Reem (04:48):

Almost

Jillian (04:48):

Be mean. I know I can handle it,

Reem (04:51):

Not be mean, but I've had some prompts. Ream, you're amazing. You're so inspirational. And, and my first thing is, please do not humor me, . Let it be data-driven conversation. Anyways,

Jillian (05:02):

That's a great instruction. Do you find that when you, 'cause you travel between Canada and us quite a bit, and your, and your workday, I imagine is very cross-functional between Canadian teammates and US teammates. Do you feel at all a difference in attitudes or perceptions or even the adoption rate between the two? Or is it pretty uniform across borders,

Reem (05:23):

More similarities than differences? We definitely have, um, a lag in adoption when it comes to Canadians based on our stats. Um, we do have, I don't know if you know, uh, that we really, when you think about Canada, we really didn't just, you know, participate. We, we started the whole AI race. And when you think about, you know, the foundation of AI technical foundation and where it started with Jeffrey Hinton, godfather of ai, which we're also proud of, and all the research that we do, we seem to have as a country, uh, created and started the whole ai, um, race, but yet we're not adopting at the same scale or level or speed as our counterparts globally. Hmm.

Jillian (06:29):

That's, you raised so many interesting points, and I feel like particularly in the AI space, when things move so fast, our memories are quite short. And this is a human fault throughout history, we forget sometimes about the origins of things. So it's a really interesting paradox that you raise where you're reminding us that a lot of the great minds that led to the AI advancement that we have today came from Canadian brains.

Reem (06:58):

Totally. Totally.

Jillian (07:00):

And that talent is now going where.

Reem (07:04):

So let me just be unapologetically, you know, bragging about a couple of things. Uh, more than, uh, 10% I think of the top tier AI research talent globally. We hold that from a Canadian perspective. I think we're second globally, if you think about research, AI research, we produce more AI research than all the G seven countries. We far exceed everyone, even from a year over year, uh, AI talent upskilling, we can, we, we top all the G sevens, but then we do have less than 12% adoption. So you think about it and you go, it is an issue. So we create the talent mm-hmm . Yet we don't retain it. We fundamentally keep exporting our talent to other places where there's bigger opportunities, where there's massive investments. And this is, uh, truly our opportunity as a country to rise up and make sure that we are retaining our talent, that we are investing in our small businesses.

Jillian (08:26):

I can't move on without double clicking a little bit into that.

Reem (08:30):

Okay.

Jillian (08:31):

The lag in adoption, if the talent starts there, why is that lag in adoption happening? Is it the opportunities because of the industries that are in Canada? Is it a mind shift? Is it about courage? What's holding you back?

Reem (08:46):

I think we've always been in a position, or we used to be in a position where we have this cushion, where we have this soft landing, uh, Canadians by maybe culturally are conservative risk averse. So most probably we've always watched an opportunity pass by and thinking at some point it will come our way. But, you know, technology today is, uh, changing the spectrum. The powers, uh, politics, influence, economies are all shifting based on who owns that race to technology that can support the growth of what needs to happen in the next generation. So we, we've been watching mm-hmm . It's almost like we invented that engine and bought, and now we're buying tickets to get on the train. Like that's, that's really, uh, fundamentally, but you take a step back and you think about what can we do? What is the opportunity ahead of us? It's no longer dependence on other entities, uh, to support you mm-hmm . Uh, but more about reliance and creating this mechanism where, you know, we'll never, we'll never win from an infrastructure race. You know, Canada, uh, invested 2 billion for AI infrastructure. I think it's called Stargate, the us It's 500 billion US dollars. So we're never gonna compete on a global level from investments made mm-hmm . But we can definitely compete from a talent retaining, retaining that talent, and also from the fact that we have energy, clean energy that we can leverage and support to drive those, you know, innovation that we need to do.

Jillian (10:49):

You are, I think, speaking very much in parallel to something that we heard from your prime minister at Davos. He really, in a, in a provocative speech, advocated for Canada building its autonomy even in areas like technology. That's a national conversation. However, that idea, that decision is very much illustrated in the decision that's sitting on the desk of a lot of IT leaders today. They have to decide whether or not to go deep on US-based platforms because that's where the capability is. Um, do they try to preserve some degree of sovereignty or optionality? And that choice, as we know, has real business consequences. You have to think about cost, you have to think about speed, access to innovation. You touched on some of these things. Reem as the leader of Insight Canada, you have a very unique position where you sit within a US headquartered global organization, and I'm sure you talk to other leaders in a similar situation. So I'd like to know, particularly if you're advising A-C-C-E-O or or leather leader in that position, where do you kind of address that tension? How do you see that tension and how do you guide them when they're thinking strategically about how do I grow the business when it is, you know, headquartered or born from the United States?

Reem (12:15):

Um, you know, what all valid and, and really, uh, we talk a lot about AI sovereignty, okay. And many, um, CEOs and organizations do this check in the box, I know where the data center is, I know where the infrastructure infrastructure is, and they do it for procurement reasons. And they say, okay, we're covered. It's in Canada somehow. But at the end of the day, we all know that the infrastructure resides in a foreign, you know, with foreign politics, with foreign laws that, uh, dictate what kind of access. So I think the, the biggest thing for CEOs and Canadian businesses is to start thinking about what role can we play and what can we do to make sure that we understand how the decisions are being made and where we can shift our business in the event. You know, start getting geopolitical situations that dictate, you know, scenarios that you have to move.

Reem (13:20):

What does that mean? What is my backup plan? How am I upskilling my talent so that I am not just a consumer, but I'm also a builder of that innovation hub that sits on top of all of this? We do have options, but the option is not to create this isolated stack or isolated, you know, business within the country. Mm-hmm . It's to leverage the global scale that exists, but create an innovation layer and also understand what is the decision making process? How do I trust what's coming forward, and how are we making sure that we're driving the values that matter to us and continue upskilling and investing within your local capabilities.

Jillian (14:07):

And I'm going to assume that a lot of that is driven by ai, but that doesn't exist without ai. Like even if you're gonna put your head in the sand and say, this thing isn't real, you're still thinking that way. You're still thinking globally and upskilling locally.

Reem (14:23):

A hundred percent. That's how it works. That's how we've always worked. It's creating, uh, and you know what, Canada can continue playing this, this bridge. Uh, we bridge cultures, we can bridge economies, we can also be that innovation ecosystem. Mm-hmm . And we, we also have a, you know, trust, I think at a global level in our laws, in our policies, that we can play an active role leveraging the great talent that we have, and yet continue building that trust. Um, at a global level.

Jillian (15:05):

When we talk about AI in the greater echo chamber, there's a lot of noise around the AI bubble, if it's gonna burst, AI is going to take jobs, or AI is a productivity metric. Like it kind like pick your poison of, you know, what's the direction that you wanna go with this? And, you know, you can be optimistic, pessimistic, it doesn't really matter. Is there a conversation that you think we're not having enough about AI or is there a way to look at this as a strategic investment? Kind of no matter how this uns shakes,

Reem (15:40):

I don't think anyone can afford to ignore whether you're pest pessimistic or optimistic. Uh, not doing something is because, is not a good answer.

Jillian (15:55):

It'd be like ignoring when.com became it

Reem (15:57):

Sense

Jillian (15:57):

Became a thing. It

Reem (15:58):

Doesn't make sense. It doesn't make sense. Like it's just truly that is, that will dictate who continues to be relevant and in business versus who does not. And, and I truly believe that, um, let's talk about creating strategies. Mm-hmm . Start doing things, we, if we're waiting for that perfect, evaluated, complete comprehensive strategy mm-hmm . Will never start. And we'll never go anywhere. Just go do it. Just

Jillian (16:33):

Go do it.

Reem (16:34):

Find one thing that you can implement that is irreversible mm-hmm . That will have an impact. And as long as it has an impact, and you're measuring to be positive versus generic mm-hmm . Then you've won already in one piece of it. So that truly has to be the shift of, you know, all we are thinking about it, we're talking about it, we're creating a strategy, we'll come up with the plan, just do it.

Jillian (17:05):

, I'm sensing a little bit of frustration gently behind that. 'cause your personality doesn't really allow for full-blown frustration, . But I need to know now, like, what's a conversation that you're having with business leaders that you're just darn tired of having?

Reem (17:20):

Oh, I, I don't wanna hear anymore about the fact that we're trying to make sure we have the right strategy, that our culture, we wanna make sure those are all things that you can manage. It's within you. It takes leadership, it takes a decision to make it. I think it's time that we stop watching and waiting for a perfect moment. Mm-hmm . And we adopt and implement safely. Mm-hmm . Securely with the right governance. Just don't go. But you know, it's, I I talked about the stats of, you know, 12% or 20% adoption, but then you think about it, and Canadians, almost more than 50% of them are using the technology. So whether they're organization is adopting, they're using it on a personal basis. So isn't it better for us to provide that governance, that secure space, that best practice and to drive outcomes. Mm-hmm . From it. Mm-hmm . So I think it's time for us to stop talking about strategy and all the obstacles and figure out how we can make this happen. Yeah. And what's the next step.

Jillian (18:28):

Okay. So let me challenge that a little bit, because I think what you're saying is, is fascinating in terms of strategy. I, I would imagine that if you're sitting down looking at your business, you're looking at a one year plan, a three year plan, a five year plan, how realistic is that today? How far in advance can you really plan? Particularly when it feels like disruptions are sort of like, it's a quarterly thing. Like, okay, what's it gonna be this time? Like, we're, we're facing a memory shortage right now. So how, how do you look at your business and plan and how do you advise others to, to plan? So,

Reem (19:00):

So I think every organization, especially today, like the speed of improvement of AI is, what is it? 50% improvement every six months.

Jillian (19:09):

I mean, it's like every, every heartbeat there's a new model, it's always getting better

Reem (19:14):

And, and you Yeah. It's, it just, and, and that's the, that's why you cannot wait mm-hmm . To implement or do something or start. But if you think about the speed or the direction of an organization, you look at having a direction for three years, you define, this is our vision, this is what we wanna be in three years mm-hmm . But you set annual plans. It's no longer a three year plan. Mm-hmm . And then you do a check-in quarterly. Are we on the right track? Are we at achieving the results? Do we have the proof points to continue that we're on the right track? You have to revisit on a quarterly basis. 'cause the speed of change we cannot afford. Whatever you decide is six months ago. Mm-hmm . Might no longer be relevant. How, how amazing is this time

Jillian (20:06):

Ever, the optimist sounds like what you're saying is that leaders are using that volatility as an excuse to not move right Now. Is there a decision framework that you use to make those quarterly or yearly decisions?

Reem (20:21):

It's, it's truly, this is the objective. These are the investments we're making, this is the ROI that we committed to having. And there's certain scenarios where the, like, you know, get most of the clients how much cost reduction. Let's talk about how we've amplified the power of your team. Let's talk about opportunity to improve the quality. I think it's a balancing act, but if we're always just looking at cost reductions mm-hmm . That might not be the only narrative that needs to build to be looked at. This is not just automation for the sake of automation. This is thinking about what are the other adjacent businesses that I can look at or capabilities? What else can I do? What more can I support? How can I serve our clients better? These are things that as you start thinking about how you can impact the business, extremely powerful.

Jillian (21:22):

Let's zoom out again to the macro, because we started with a really big question about the sovereignty with Canada and ai. When we talk about Canada winning in the AI economy, and you're thinking about, again, the business leaders who either their, their businesses only in Canada or they are working with global partners. What does that look like for Canada to be winning in ai?

Reem (21:52):

Um, 96% of our businesses in Canada are small, medium business enterprises. So if you think about that and you think about that, the majority of whatever limited adoption we've had has been on the larger enterprise organizations. You can't leave 98% of your economy behind mind. Um, winning for Canada means that we're leveraging this opportunity to bring the capabilities to our small medium business, to our entrepreneurs, to our well startups already our built with that. Mm-hmm. But to bring that capability and to upskilling and invest in them and give them the access needed so that they can compete in this global economy. So I think that's, that's a critical path. The other one is I think we also need to define our own destiny instead of, as I said, consume it. Um, and we have that, we have the talent, we have the heritage of the talent as well. We do, and we have energy that other countries are envious of clean, you know, energy and hydro that allows us to do more.

Reem (23:27):

So I think that combination with that trust is the way that we will win the AI race. And then at the end of the day, and you know, Jillian, it's critical for me and I won't leave it, is that we think about it how we can as a whole, uh, and Canada can play a massive role, help from a trust perspective to help humanity so that you're trusting so that you have the, you know, good ai, ethical ai mm-hmm . Uh, AI that provides you with the outputs that you will you believe in as a society. So I think that's our massive opportunity, and that's how we will win.

Jillian (24:13):

It's a beautiful vision.

Reem (24:15):

We just need to stop thinking about it and start doing it

Jillian (24:21):

One step at a time. Let's end with what you want the leader listening to this to really carry home with them. If I'm a Canadian CEO, I've got global economy, global technology dependencies, a team asking me what is our AI strategy? And every signal telling me that the rules of competition are being rewritten in real time, what is my actual job right now? What is the responsibility? What is the biggest decision that I can make that is going to help me come out stronger in this moment?

Reem (24:55):

First of all, you should start using, you should start learning, investing, be that role model to make sure that you are the person demonstrating that learning. And then the next thing is upskill your people. Don't make it optional. This is something foundational. This is a life skill that you needed for yourself, for your people, as well as for your family. Mm-hmm . Like, and, uh, and I think it starts with that. And then you look at the excitement of the human potential of what you could do and make lives better. So, uh, go ahead. Just start, make it happen.

Jillian (25:40):

I can't let you go without asking you this last question because I think you have such a clear, thoughtful, and also very optimistic view of the world. You decide that. So what do you, what do you most optimistic about? Where do you think the world is gonna be in three years? What is the greatest version that we could make happen?

Reem (26:07):

The biggest gift of all would be to amplify the power of humanity. And I think we're, this is, it's never been clear that technology and humanity can intersect at this level. And this is our opportunity. Let's not waste it. That's it.

Jillian (26:28):

Well said. Thank you, Reem. Thank you. It's been an absolute pleasure.

Reem (26:32):

Thank you so much. This has been great. Appreciate it.

Jillian (26:36):

Thanks

Speaker 3 (26:37):

For listening to this episode of Insight on If today's conversation sparked an idea or raised a challenge, you're facing head to insight.com. You'll find the resources, case studies, and real world solutions to help you lead with clarity. If you found this episode to be helpful, be sure to follow insight on, leave a review and share it with a colleague. It's how we grow the conversation and help more leaders make better tech decisions. Discover more@insight.com. The views and opinions expressed in this podcast are of those of the host and the guests, and do not necessarily reflect on the official policy or position of insight or its affiliates. This content is for informational purposes only, should not be considered as professional or legal advice.