The Canadian government and major financial institutions are taking divergent paths regarding artificial intelligence. While Ottawa is moving to secure domestic AI leadership through a massive investment in Cohere, Canada's largest banks are actively restricting how third-party AI agents interact with consumer accounts to prevent security breaches.

Securing AI sovereignty

Prime Minister Mark Carney announced a plan to invest up to C$1.6 billion in the Toronto-based AI firm Cohere. This investment is part of a broader national security strategy intended to ensure Canada maintains control over critical emerging technologies.

Read also Canada launches first national security strategy in 20 years

By taking an equity stake in the company, which is valued at approximately C$35.7 billion, the government aims to keep the firm's roots and operations within the country. The deal includes a commitment to create at least 1,000 technical jobs in Canada, supporting the nation's goal of economic and technological sovereignty.

Why are banks blocking personal AI agents?

While the government scales up domestic AI, the banking sector is tightening its defenses. Several major institutions, including RBC, BMO, and TD Bank, have moved to block third-party personal AI agents from accessing their digital banking platforms.

These restrictions come amid growing concerns regarding the reliability of automated agents. For example, a recent incident involving Meta's Muse AI agent saw a user's home address shared with a stranger after the agent made unauthorized decisions. RBC CEO Dave McKay noted that while AI offers time-saving benefits, "nothing is more important than the security of client information."

Steel industry tensions

In a separate industrial development, Cleveland-Cliffs is attempting to navigate labor disputes at Stelco. The company's CEO expressed hope to recall 175 laid-off workers by Christmas, provided there is an increase in Canadian steel sales.

This comes as the Canadian government maintains pressure on the U.S.-owned company. Industry Minister Mélanie Joly has suggested that legal action could follow if the company fails to meet its previous employment guarantees under the Investment Canada Act.

FAQ

What is the goal of the Cohere investment?

The investment aims to bolster Canada's AI capabilities and ensure the company remains a Canadian-based entity.

Can I still use AI for my banking?

Currently, major Canadian banks are blocking third-party agents from accessing authenticated accounts to protect user data and prevent unauthorized transactions.