The Canadian federal government has signed a non-binding memorandum of understanding with Toronto-based AI startup Cohere Inc. to explore deploying artificial intelligence across government operations, aiming to enhance efficiency and service quality.

AI Minister Evan Solomon highlights AI's potential to boost government productivity without job cuts, comparing it to past technological innovations like ATMs and computers.

The government plans to utilize Cohere's AI tools, such as North, which offers privacy and security features suitable for public sector use, to automate tasks like document drafting and improve public services.

This initiative aligns with Canada's broader strategy to establish global leadership in AI technology, reduce reliance on foreign tech firms, and foster a vibrant digital ecosystem supporting local talent and innovation.

Prime Minister Mark Carney has prioritized AI adoption as part of the effort to improve government efficiency and promote the growth of Canada's domestic AI industry.

Canadian officials, including Ministers Evan Solomon and Joël Lightbound, emphasize the importance of collaborating with local AI innovators to ensure responsible development and deployment of AI solutions.

Founded in 2019, Cohere specializes in large language models and focuses on high-security, privacy-sensitive clients, including government agencies worldwide.

The collaboration aims to enhance government services for Canadians, build Canada's commercial AI capabilities, and promote responsible AI standards internationally.

The MOU signifies a commitment to leveraging AI to improve public service efficiency while maintaining digital sovereignty and protecting Canadian interests.

Canada has previously supported Cohere with a $240 million funding grant for its computing needs, viewing the company as a key player in the nation's AI landscape, competing with global giants like OpenAI and Google.

This initiative reflects Canada's goal to demonstrate global leadership in AI by fostering innovation, supporting local talent, and reducing dependence on foreign technology firms.

Cohere has also signed a similar MOU with the UK government, indicating international interest in its AI solutions.