Canada partners with tech firm to boost government efficiency

ByJoshua Santos
Published: December 18, 2025


Canada is actively integrating technology to drive a major shift in the way it delivers services to the public.

The federal government aims to modernize digital workflows and reduce the load of heavy paperwork across its departments by capitalizing on artificial intelligence.

“I think it’s a real railroad moment, the way I say it, for Canada,” Louis Têtu, executive chairman of the board at Coveo told BNN Bloomberg in an interview. “I’m certainly pleased to see the current government be so intentional and moving fairly quickly.”

The government signed a five-year memorandum of understanding with Montreal Que.-based Coveo Solutions Inc. on Dec. 17 to assist with its work. The government said the partnership prioritizes Canadian-made software to ensure that federal data and innovation stay under domestic control while improving how services reach the public.

The Shared Services Canada and Innovation, Science and Economic Development Canada are spearheading the charge by exploring advanced search and agentic AI systems that can plan and complete complex tasks on their own.

The strategic focus for the feds is to use technology to reduce administrative burdens to maximize staff capacity, time and taxpayer value. Tetu said there is a significant opportunity for the government to use AI technology.

“It can help government workers obtain better information to serve Canadians,” said Têtu. “That is a key low-hanging fruit that potentially is a billion dollar plus cost savings opportunity for the government and frankly give back time to Canadians.”

By identifying practical uses for generative and agentic AI, Ottawa intends to make the federal workforce more responsive.

“By working with a leading Canadian company through this memorandum of understanding, we are exploring how homegrown AI solutions can help modernize government operations, strengthen digital sovereignty, and improve how services are delivered to people and businesses across the country,” Minister of Artificial Intelligence and Digital Innovation Evan Solomon said.

The commitment to domestic technology fits into the broader AI Strategy for the Federal Public Service 2025 to 2027, enforcing Canada’s goal of leading in responsible AI use while ensuring that automation leads to better experiences for all Canadians.

Joshua Santos
Journalist, BNNBloomberg.ca