Canadian Government and Cohere Forge AI Partnership for Public Service

The Canadian government has signed a new agreement with the Toronto-based artificial intelligence (AI) company Cohere to explore the application of AI technology within public sector operations. The memorandum of understanding (MoU), signed by Evan Solomon, the federal AI minister, and Joël Lightbound, the minister responsible for government transformation, outlines plans to utilize AI tools to enhance operational efficiency and strengthen Canada’s commercial capabilities in AI.

This agreement aligns with the federal government’s ongoing initiative to leverage AI technology to boost productivity across various sectors. Solomon emphasized the importance of collaborating with Canadian innovators like Cohere, stating that it will lay the groundwork for a more efficient and productive public service while ensuring Canada remains competitive in the evolving digital landscape.

Details of the Agreement and Future Collaboration

The MoU is non-binding, which means it does not guarantee a formal business contract with Cohere but sets the stage for potential future collaborations. Official government sources have confirmed that no contracts have been awarded to Cohere as of now, according to available data from the CanadaBuys and Open Government contract award databases.

This new partnership builds on a previous agreement announced in June 2023, which focused on AI research and safety in collaboration with the Canadian AI Safety Institute (CAISI). During that time, Cohere expressed its commitment to transforming government operations through the power of AI.

Cohere, founded in 2019 by former Google researchers, specializes in developing large-language models (LLMs) that are utilized in chatbots and various AI applications for both corporate and governmental clients. Recently, the company announced a substantial funding round, raising $500 million USD at a valuation of $6.8 billion USD, positioning it as one of Canada’s most valuable private tech firms.

Innovative AI Applications in Government

As part of its efforts, the federal government is currently testing Cohere’s AI models through the Innovation, Science and Economic Development Canada (ISED) IT unit. One notable project is ParlBrief, an AI tool designed to automate the transcription and summarization of parliamentary committee meetings. This tool employs four different open-source models alongside proprietary services, including Cohere’s Command R+, as reported by The Logic.

Furthermore, Cohere has actively engaged in lobbying efforts, reportedly spending around $1 million since 2023 to influence policymakers in Canada, the United States, Europe, and the United Kingdom, according to the Investigative Journalism Foundation.

Although the impact of AI tools on productivity has received mixed evaluations, there is optimism about the potential benefits. Statistics Canada reported a modest increase of only 0.2 percent in Canada’s labor productivity in the last quarter, while the services industry, which encompasses technology firms, experienced a decline of 0.5 percent.

In light of these developments, Prime Minister Mark Carney has urged cabinet ministers to prioritize the deployment of AI, emphasizing a results-oriented approach rather than an expenditure-focused one. This push reflects the government’s commitment to harnessing AI technology to modernize public services and improve operational effectiveness.

As the collaboration between the Canadian government and Cohere unfolds, it remains to be seen how this partnership will shape the future of AI in public services and contribute to enhancing Canada’s position in the global AI landscape.