Featuring
Molly Reynolds
Julien Billot, Scale AI
Read commentary from our lawyers on the latest legal and industry trends within the AI sector in our article “A new era of innovation in Canada: AI”. And for more industry insights, read our Q&A with Mark Shulgan, Co-founder of Intrepid Growth Partners.
Canada is placing big bets on AI. In this Q&A, Molly Reynolds, Partner, discusses developments shaping the industry and key areas for growth with Julien Billot, CEO of Scale AI.
Molly: AI is dominating the conversation across industries both in Canada and abroad. What developments are you most excited about?
Julien: Canada’s AI ecosystem is entering a new phase of maturity, marked by a surge of commercially ready solutions. We’re seeing this evolution transform the ecosystem into a true Canadian AI industry. At the same time, more homegrown innovations are reaching the stage where they’re ready for both national deployment and global export. Across sectors, from health and logistics to energy and defence, we see Canadian companies building world-class applications that deliver tangible results.
What’s particularly exciting is the acceleration in adoption. Businesses and public institutions are moving from experimentation to execution, integrating AI to improve productivity, optimize operations, and better serve citizens.
Molly: Scale AI operates at the intersection of government and the private sector. What areas do you see as offering the most opportunity for cross-sector collaborative projects?
Julien: The greatest potential lies in critical sectors where collaboration can deliver public and economic value simultaneously. This includes healthcare, transportation, defence, energy, agriculture and public infrastructure. These sectors are essential to Canada’s resilience and competitiveness, and they benefit greatly from AI-enabled solutions that improve efficiency and service delivery.
Scale AI’s co-investment model de-risks projects by matching public and private investment, enabling faster deployment and clearer returns on investment. By connecting governments, research centres and industry players, we turn collaboration into measurable economic and social value.
Molly: What is your 20-year forecast for AI technology and its use cases?
Julien: It’s difficult to make precise forecasts since AI capabilities are evolving almost weekly. However, one area I’m convinced will transform profoundly is public services. AI will help governments deliver faster, smarter, and more efficient services to citizens while reducing costs and improving accessibility.
Over time, AI will become an invisible layer powering how our institutions operate. The real opportunity lies in ensuring that these systems remain sovereign, secure and aligned with our Canadian values.
Molly: How would you say the Canadian ecosystem compares to other jurisdictions in terms of support for entrepreneurs building AI startups?
Julien: Canada stands out for its collaborative and values-driven ecosystem. We have world-leading research institutes, a dense network of startups and SMEs, and a public policy framework that promotes responsible innovation. One of our greatest strengths lies in this unique triangular relationship between research institutions, emerging companies, and governments—a model that is distinctly Canadian and fundamental to our success in AI.
However, compared to other jurisdictions, Canada’s key challenge lies in scaling. We’re facing a domestic market challenge, driven by limited demand for homegrown AI products and solutions. Many of our AI entrepreneurs have cutting-edge technologies but struggle to find their first major customer. Scale AI helps bridge that gap by driving adoption, funding commercialization and facilitating connections between innovators and industry leaders. This approach transforms scientific excellence into commercial success while keeping IP and economic value rooted in Canada.
Molly: In your view, what would encourage more widespread adoption of AI? What are the biggest challenges?
Julien: It is absolutely critical to accelerate adoption. Canada needs to build a stronger domestic market for AI demand—it’s essential to the development of the AI industry we’re creating. To accelerate adoption, we must make it easier for companies, especially in traditional sectors, to test and deploy AI solutions safely and efficiently. At Scale AI, we try to create those conditions by de-risking projects and disseminating the lessons from more than 170 industry-led initiatives across Canada.
But it’s equally important to emphasize that not all AI is created equal. When we talk about adoption, we should aim to prioritize Canadian-built AI, solutions developed here by our own companies and researchers. Otherwise, we risk increasing overall AI usage while strengthening foreign technology giants at the expense of our domestic AI products and services providers.
The main challenge is not awareness but execution. Many organizations know they need AI but don’t know where to start or how to measure ROI. Providing clear roadmaps, proven models, and success stories is key. Public institutions can also lead by example through their own adoption, creating a strong demonstration effect for the private sector.
Molly: Canada is considered by many to be the leader in AI research and development. How do we move the dial to become leaders in AI commercialization?
Julien: We need to help our innovators find their first customers. When Canadian startups secure early contracts with large enterprises or government bodies, they gain the credibility and data they need to expand internationally.
Both the public and private sectors have a role to play: by prioritizing “buying Canadian,” they help startups prove the value of their solutions, maintain Canadian IP ownership, and build the foundation for export success.
Molly: What international opportunities can the government focus on to support domestic growth?
Julien: Europe remains a strategic partner. Canada’s recognition as Country of the Year at VivaTech 2025, Europe’s largest tech event, illustrated the global appetite for Canadian innovation, following France’s role as Country of Honour at “ALL IN 2024”—a milestone that helped strengthen this growing partnership.
Looking ahead, the United Arab Emirates represents another strategic opportunity. The UAE was named Country of Honour at “ALL IN 2025”, followed shortly by a memorandum of understanding between our two nations, opening pathways for collaboration on AI for public services and digital transformation.
Asia is a natural next step as well. Markets such as Singapore, South Korea, and Japan are eager for responsible, trusted AI solutions, an area where Canada has a clear competitive edge.
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