Artificial intelligence innovators will be getting a major boost from some of Canada’s largest companies and a $5 million CAD fund. NextAI is a crucial tool in combating the brain-drain loss of entrepreneurs and talented students to other countries.
The Brain-Drain Problem
Canada has long punched above its weight in AI research. Universities in Toronto, Montreal and Edmonton trained many of the researchers behind modern machine learning. The problem was what happened next: talented graduates and founders often left for Silicon Valley, where the funding, the big tech employers and the startup ecosystem were.
That’s a costly loss. When a researcher or founder leaves, the companies, jobs and tax revenue they create go with them. Programs like NextAI were designed to give AI entrepreneurs a reason to build their companies in Canada instead.
What NextAI Offered
The NextAI program, an offshoot of the national entrepreneurship nonprofit NEXT Canada, is dedicated to establishing the country’s position as a leader in AI entrepreneurship and innovation. Launching in February, the program will bring AI-focused startups from around the world to its Toronto hub and provide them with mentorship, education, corporate services and state-of-the-art technology, in addition to up to $200,000 per team.
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Founded by executives at RBC and Magna, the group has received additional funding by BDC Capital and Scotiabank, as well as sponsorships from leading Canadian technology companies such as IBM.
Why Big Companies Got Involved
“Artificial intelligence is one of the most transformational technologies impacting business today, and Canada must remain at the forefront of exploring its commercial and scientific opportunities,” said Dave McKay, President and CEO of RBC. “By partnering on NextAI, we’ll help entrepreneurs from around the world develop their next AI ventures here in Canada.”
For a bank or an auto parts maker, backing an AI program isn’t just goodwill. Companies like RBC and Magna need AI talent and products of their own, and a pipeline of local AI startups gives them potential partners, suppliers and acquisitions close to home. Supporting the ecosystem is a way of making sure the expertise they’ll need exists in Canada.
A Bigger National Push
NextAI arrived just as Canada was making AI a national priority. Later in 2017, the federal government launched the Pan-Canadian Artificial Intelligence Strategy, which CIFAR describes as the first national AI strategy in the world. It focuses on recruiting and keeping top researchers and training new talent.
The strategy is built around three national AI institutes: Amii in Edmonton, Mila in Montreal and the Vector Institute in Toronto. Together with programs like NextAI, they were meant to give AI talent both a place to do research and a path to turn that research into companies.
NextAI Today
The program is still running, now under the name NEXT AI. NEXT Canada describes it as a founder and venture development network for AI-enabled startups, and it has grown beyond Toronto: founders can take part from anywhere in Canada, either remotely or in person at sites in Toronto and Montreal. The Montreal program is delivered in partnership with HEC Montréal.
The model has shifted to fit Canada’s own founders. Today the program looks for Canadian-incorporated companies where AI is core to the idea, with at least one business co-founder and one technical co-founder who hold Canadian citizenship, permanent residency or a valid work or study permit. Participants get a curriculum, access to AI scientists and mentors, free office space in Toronto and Montreal, and in-kind perks from partners such as NVIDIA, AWS and Osler.
NEXT Canada itself has grown too. Its site lists faculty such as Yoshua Bengio of Université de Montréal and Mila, and says its programs have supported more than 1,000 entrepreneurs.
What It Means for AI Founders
If you’re building an AI company in Canada, there’s far more support available than there was in 2017. Programs like NEXT AI offer mentorship and connections that are hard to find on your own, and the national institutes keep research talent close by. The brain-drain pull toward the U.S. hasn’t disappeared, but founders now have real reasons and real resources to stay and build at home.
Frequently Asked Questions
What is NextAI?
NextAI is an AI program from the national entrepreneurship nonprofit NEXT Canada, created to establish Canada as a leader in AI entrepreneurship. It launched in 2017 with a $5 million CAD fund and up to $200,000 per team.
Who backed NextAI?
NextAI was founded by executives at RBC and Magna, received additional funding from BDC Capital and Scotiabank, and had sponsorships from technology companies such as IBM.
Why was NextAI created?
NextAI was meant to combat the brain drain of AI entrepreneurs and talented students to other countries by giving them support to build their companies in Canada.
What is the Pan-Canadian Artificial Intelligence Strategy?
Launched in 2017, the Pan-Canadian Artificial Intelligence Strategy is described by CIFAR as the first national AI strategy in the world. It is built around three national AI institutes: Amii in Edmonton, Mila in Montreal and the Vector Institute in Toronto.
Does NextAI still exist?
Yes. The program now runs as NEXT AI, with sites in Toronto and Montreal and a remote option for founders anywhere in Canada. The Montreal program is delivered in partnership with HEC Montréal.