In 2017, Canada became the first country in the world to launch a national AI strategy. With $125 million in initial investment, it established world-class research hubs like Mila in Montreal, Amii in Edmonton, and the Vector Institute in Toronto.

That early leadership positioned Canada as a global force in AI. Today, with the global market racing toward $1 trillion by 2030, Canada’s AI ecosystem is not just holding its ground - it’s growing fast. The domestic market is expected to climb from $6.5 billion in 2023 to $28 billion by 2028.

But as we scale, there’s one essential piece we can’t afford to overlook: the human experience. No matter how powerful the model or advanced the infrastructure, AI won’t succeed if it doesn’t work for the people using it. UX is where trust is built, adoption happens, and impact becomes real.

From Strong Foundations to Scalable Growth

Canada leads the G7 in AI publications per capita and is home to over 10% of the world’s top AI researchers. This deep bench of talent has fueled a dynamic research ecosystem and inspired the creation of more than 1,500 AI startups across the country.

In 2022 alone, the sector attracted $8.6 billion in venture capital - nearly 30% of all VC activity in Canada. That’s a strong signal: Canada isn’t just producing ideas in this space - it’s building businesses.

But as AI tools make the leap from lab to market, the experience users have with them becomes make-or-break. A powerful model that confuses users, ignores feedback loops, or behaves unpredictably won’t see widespread adoption. Scalable growth depends not just on technical performance, but on usability, transparency, and alignment with real-world workflows - most importantly a true ‘human-centred’ approach.

Investment is Flowing - And So is Opportunity

Canada’s 2024 federal budget reinforces its long-term commitment to AI with targeted investments with $2 billion allocated for high-performance computing access and $200 million committed over five years to help AI startups commercialize and drive adoption in sectors like agriculture, clean tech, healthcare, and manufacturing.

This kind of support shows vision and clear commitment. But adoption still lags. As of mid-2025, just 12.2% of Canadian businesses were using AI to produce goods or deliver services. That figure is expected to double-but only if the tools being built feel intuitive, useful, and trustworthy.

Here’s the opportunity: UX can - and should - be the accelerator.

Embedding user feedback into development, prioritizing explainability, and surfacing friction early all shorten the path from prototype to value. If we want adoption to match investment, we need to design for the people who use these tools-not just the systems that power them.

What Comes Next? Turning Potential Into Progress

To fully realize its potential, Canada’s AI ecosystem can take some key next steps:

  • Expand compute access for startups, researchers, and SMEs
  • Continue to connect research to commercialization with stronger procurement programs, testbeds, and applied pilots
  • Empower more regional and sector-specific adoption - in healthcare, manufacturing, agriculture, and beyond
  • Ensure future related legislation is adopted with thoughtful, flexible implementation
  • And critically: embed user experience as a core part of AI development strategy

AI doesn’t live in a vacuum. It operates in clinics, warehouses, customer support workflows, and classrooms. That means building for context, clarity, and human outcomes-not just accuracy.

At Pulse Labs, we help teams-from large enterprises to lean startups-understand how people interact with AI-powered systems. We work at the intersection of machine learning, human-computer interaction, and real-time decision-making.

Our focus is on explainable, user-centered AI. Not just because it looks better-  but because it works better. It builds trust, reduces friction, and ensures that the intelligence we build is actually usable.

This should not be viewed as a niche capability. It’s fast becoming a national priority. It’s where innovation meets adoption-and research turns into real-world impact.

A Defining Moment

Canada’s AI story isn’t just about what has been built so far. It’s about what will be built next - and how it will be built.

The country has the research, the talent, and the public investment in place. What comes next depends on how effectively technology is connected to the people it’s meant to serve. That’s why user experience can’t be an afterthought - it must be an integral part of the blueprint.

Because in the end, the future of AI won’t belong to whoever publishes first. It will belong to whoever deploys best - and designs for people.

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