by Sam Sebastian VP & Country Manager, Google Cloud Canada
As we bid goodbye to 2024, I have been reflecting on how generative AI has continued to evolve from a nascent technology into a powerful force driving real business value. In conversations with Canadian customers earlier this year, many were taking their first tentative steps, exploring how generative AI could impact their organizations through pilot projects and small-scale deployments.
But the landscape has shifted dramatically. Companies have moved beyond AI experimentation to full-scale deployments, transforming specific parts of their business. Many of these projects, while not always immediately noticeable to consumers, have focused on optimizing back-end processes or enhancing customer-facing platforms, yielding impressive cost savings and productivity improvements. Companies like TELUS and Dollarama are already reaping the rewards, and it’s encouraging to see other Canadian businesses across all industries follow suit, establishing their own generative AI strategies.
This momentum positions 2025 as a pivotal year for generative AI adoption in Canada. As the technology matures and initial deployments demonstrate tangible value, executives will face the imperative to build winning AI strategies that fundamentally transform how their companies operate, compete, and innovate.
AI Trends to Watch in 2025
Our recent Economic Impact Report highlighted AI’s potential to boost Canada’s economy by $230 billion and save the average worker 175 hours per year. The scale of this opportunity demands that every business leader pay close attention to key AI trends in 2025. Here are a few that I believe will positively impact key industries in Canada and drive real productivity growth across the country:
• Companies will release more customer-facing AI products. AI-powered solutions will revolutionize the customer experience, enabling organizations to anticipate needs and forge stronger customer connections. Thomson Reuters, with the launch of Co-Counsel 2024, provided an early example. In 2025, organizations across all sectors will launch AI-powered products designed to increase revenue and efficiency, boost efficiency, and cultivate brand loyalty.
• AI agents will streamline workflows and empower employees. As AI agents become more sophisticated, they’ll manage complex workflows, automate business processes, and empower employees. Bell Canada, an early adopter, partnered with us to transform their contact center with AI, including with Conversational Agents and Agent Assist. Bell’s CEO recently described how this transformation improved the customer experience and generated $20 million in savings.
• Canadian startups will scale with AI. Canada is already home to successful AI startups like Cohere. Next year, we’ll see Canadian startups launch AI-powered products across a diverse array of sectors. We’re proud to work with many emerging startups in Canada — like Viral Nation — and can’t wait to see what they’ll accomplish in 2025.
Industry-Specific Predictions
Beyond these overarching predictions, I’m particularly excited about how different industries will continue to adopt generative AI and drive innovation for their customers, specifically in the following sectors:
• Financial services: Canadian banks are among the most active adopters of AI, with a recent study ranking all five of the major Canadian banks amongst the top 25 AI global adopters. Many have achieved early success using generative AI to boost productivity. For example, ATB Financial uses BigQuery and Google Cloud to build its modern data applications. Advanced AI and ML capabilities in BigQuery allow ATB to improve client care and client satisfaction by enabling personalized interactions and contextual recommendations.
2025 prediction: Financial institutions will leverage more advanced AI technologies to extract deeper value from their data. Intuitive search and AI agents will be key tools in analyzing vast amounts of data, providing instant access to essential insights, like new investment opportunities or a deeper understanding of customers’ goals and preferences.
Conclusion
2024 laid a strong foundation for the future of AI in Canada. 2025 will be a year of increased innovation, broader adoption, and even greater impact. Now is the time for leaders across all sectors to seize the AI opportunity. This means not just experimenting with the technology but actively developing comprehensive AI strategies that integrate this transformative technology into every facet of their operations. I, for one, am incredibly excited to witness the accomplishments that lie ahead.
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