By Alex Panousis

The Canadian AI ecosystem is buzzing with innovation and caution in equal measure. In this new six-part series, Thinkingbox’s chief growth officer Alex Panousis explores what CMOs need to know about AI today, diving deep into insights on adoption, challenges and opportunities. First up, Panousis speaks with the president and CEO of the Vector Institute and a member of key AI  governance groups – including the Government of Canada Advisory Council on AI and the World Economic Forum’s AI Governance Alliance – Tony Gaffney.

Tony Gaffney’s journey to the Vector Institute began in early 2023, just two months after ChatGPT burst onto the scene. For him, it was a pivotal moment to combine his experience as a CEO and corporate director with his passion for technology and societal impact. 

“I’ve led companies globally across different sectors,” shares Gaffney. “The opportunity to contribute to AI from both a commercial and societal perspective was one I couldn’t pass up.”

AI is already making waves across industries, particularly in healthcare. “AI is being used to detect cancer with unprecedented accuracy and monitor heart conditions, enabling patients to be cared for at home. This reduces hospital re-admissions by 50% and alleviates anxiety for patients,” notes Gaffney. 

He also highlights advancements in radiation therapy, where AI has significantly shortened treatment planning times, and says climate change is another area where AI shows promise. For instance, The Vector Institute, in collaboration with industry partners like the Bank of Montreal and Telus, have developed tools for climate monitoring and segmentation. “This kind of collaboration demonstrates how AI can drive societal and environmental good,” he said.

In May of 2024, the Government of Ontario tabled Bill 194, otherwise known as Strengthening Cyber Security and Building Trust in the Public Sector Act. The Bill is intended to address AI, cybersecurity and tech that affects Ontarians, particularly minors. When asked about the Bill, Gaffney was unequivocal in his support: “We think that a balanced approach supports innovation. It protects public interest and builds the foundation of public trust, which is essential for widespread adoption and economic growth. AI is as much about people and technology.”

Gaffney also believes Canada holds a unique position as a global leader in AI development, thanks to the groundbreaking work of pioneers like computer scientists Geoff Hinton and Yoshua Bengio. In addition, he says Canada was the first country to launch a national AI strategy, laying the groundwork for its thriving talent pool. 

However, while the country is recognized as a leader, its adoption of AI is tempered by caution. “Canada is one of the most anxious countries when it comes to AI adoption, yet 61% of Canadian CEOs surveyed have already started deploying AI to enhance products and services,” shares Gaffney. The numbers back up this duality: more than 380 companies are active in Ontario’s AI ecosystem, and 2023 saw $2.86 billion in venture capital funding for Canadian AI initiatives.

For AI adoption to become systemic, Gaffney emphasizes the importance of education and awareness. “We’re seeing significant investments in literacy among employees, tailored to their roles – from leadership to technical teams. It starts at the board level and permeates the business,” he explains, adding that encouraging innovation with clear guardrails is critical. “ChatGPT is on your phone now. Companies are experimenting with how it can be used to benefit both employees and organizations.”

Enterprises are beginning to scale AI initiatives. “The top five banks in Canada… are global leaders in AI adoption. They’re using AI at a use-case level to enhance customer interactions and scale operations,” says Gaffney. He also noted that AI’s transformative potential extends beyond efficiency to improving work-life balance and job satisfaction.

He adds that explainability – where a machine learning model and its output can be explained in a way that makes sense to a human – is a growing area of research. “Organizations must address compliance and explainability upfront. You can’t reverse-engineer these principles after the fact.”

Marketers, he adds, can now also begin to unlock AI’s potential by leveraging proprietary data. “Organizations using their own data are seeing significantly better performance,” Gaffney said. He also stressed the importance of cross-disciplinary collaboration. “You need HR, finance, tech, marketing, ethics, and risk officers at the table to embed literacy and ensure responsible deployment.”

Looking to the future, Gaffney is optimistic. “AI will be embedded everywhere, enabling many things we won’t even recognize as AI. Digital technology will become smarter and more intuitive,” he says, envisioning a scenario where AI empowers human ingenuity. “With responsible use, AI can open up a wealth of opportunities, from addressing societal challenges to improving economic performance.”

As Canada continues to lead in AI research and application, Gaffney underscores the importance of trust and governance. “Trust is critical for realizing AI’s opportunities. Companies must invest in reskilling and upskilling to navigate this transition thoughtfully,” he concluded.

For CMOs, the message is clear: AI is not just a tool for efficiency; it’s a catalyst for innovation, creativity, and societal impact. With the right strategies and partnerships, businesses can harness AI to create a brighter, more sustainable future.

Tony Gaffney is the president and CEO of the Vector Institute. A seasoned executive, Gaffney has led organizations like Aon Hewitt, Accenture, and BCE Emergis. He is an experienced corporate director with expertise in AI governance, serving on boards such as Altus Group and Loblaws. 

This story was originally published on strategyonline.