Artificial Intelligence is reshaping Canada’s technology sector, RBC says

RBC Capital Markets says artificial intelligence is reshaping Canada’s technology sector, with adoption accelerating across industries and positioning the country to play a larger role in global innovation.

In an Aug. 26 report following its Canadian Private Technology Conference, RBC highlighted five themes driving the sector: enterprise AI as a strategic growth driver, proprietary data as a competitive moat, robotics and automation in manufacturing, the rise of capital-light “Rule of 50” firms, and Canada’s push to lead in responsible AI development.

RBC analyst Paul Treiber said companies are reporting 20%–30% productivity gains in coding and product development.

 “While these translate into tangible cost savings, the focus isn’t on cutting headcount but on using AI to build better products and expand into new markets,” he said. The firm added that proprietary datasets and sector-specific expertise are becoming increasingly valuable as generative AI applications depend on quality and relevance of underlying datThe report pointed to advances in robotics and AI-powered automation that are making complex manufacturing tasks more viable, particularly in high-cost or labour-short environments. At the same time, AI-driven operating leverage is enabling firms to scale efficiently with leaner teams, fueling a shift toward companies with higher margins and more measured growth profiles.

RBC also noted momentum around Canada’s role as a global AI hub. Building on its 2017 national AI strategy, Canada now has a strong research base, a pipeline of startups, and rising adoption among enterprises.

Treiber said companies at the conference “took great pride in their ability to help turn Canada into a hub for innovation,” underscoring the country’s ambition to balance speed and responsibility in AI deployment.

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