The fall of 2025 may mark a significant turning point for artificial intelligence as it becomes more integrated into the daily lives of the general public. This shift raises important questions about intellectual property and digital sovereignty, which are increasingly becoming political issues. Prime Minister Mark Carney addressed these concerns during a recent presentation at the Council of Foreign Relations in New York.

When asked about Canada’s strategy regarding intellectual property, capital, and talent in the context of advanced technologies, Carney focused his response on the comparative values between Canada and the United States. He highlighted Canada’s diversity, tolerance, and ambition. However, Conservative industry critic Raquel Dancho criticized Carney's response, stating he “stumbled terribly.” She emphasized that Canada is “bleeding intellectual property,” which poses a serious threat to investment, productivity, innovation, and job creation. Dancho called for a clear government strategy to address this issue.

Canada has a rich history in AI, dating back to the work of Geoffrey Hinton, a pioneer in deep learning, at the University of Toronto in the 1980s. Hinton made significant advancements in pattern recognition by 2006 but chose not to patent the technology developed with public funding. This decision allowed major companies like Google and Microsoft to benefit from his work. Hinton sold his private company to Google in 2013 and worked there until two years ago, when he left due to concerns about the risks associated with AI.

In an effort to retain talented researchers, Canada has attracted global companies such as Facebook, Google, and Samsung to establish AI labs. However, much of the work conducted in these labs has been owned and commercialized by foreign entities. By 2023, AI experts funded by the Canadian government had been granted 232 patents, with three-quarters owned by foreign companies. This loss of intellectual property rights has not been prioritized by those managing Canada’s public AI response, who have focused more on training, research, and job retention.

Former industry minister François-Philippe Champagne acknowledged the importance of patents but revealed that a formal strategy was lacking. Champagne stated that AI policy was managed by his office, but further investigation indicated that no comprehensive plan existed. Critics have suggested that Canadian policy has effectively turned the country into a research and development hub for foreign firms.

The new AI minister, Evan Solomon, is now tasked with addressing these challenges. At the All In AI conference in Montreal, Solomon announced plans for a “refreshed” strategy to be presented this year. He has formed a task force of 20 industry and academic leaders to provide input on research, commercialization, and safety by November. Solomon emphasized that Canada should not serve as a “farm team for someone else’s economy,” stating, “We’re not growing companies only to have someone buy them up and move (them).”

He described digital sovereignty as “the most pressing policy and democratic issue of our time,” stressing the need for Canada to establish its own digital economy that is not subject to external control. Solomon asserted that sensitive data must be governed by Canadian law. A reporter raised concerns about the implications of U.S. law, specifically the CLOUD Act, which allows U.S. law enforcement to access data stored on servers regardless of their location. This highlights the complexities Canada faces in safeguarding its digital sovereignty.