Last February, discussions centered on AI’s potential to be Canada’s productivity savior. However, a new report might temper the AI excitement. Recent StatCan data indicates a mere 0.2% rise in Canada’s labor productivity last quarter, with most improvements from goods-producing sectors, while the services industry, including tech firms, dropped by 0.5%. AI adoption in Canadian businesses has doubled over the past year, with companies like Shopify and OpenText adopting an “AI-first” approach. Yet, the productivity benefits are not reflected in the data.
I spoke with Float CEO Rob Khazzam about their new “AI Manifesto,” guiding product development and hiring with AI emphasis. Float aims to increase automated transactions on its platform from 30 to 80 percent by year-end, potentially saving customers over 10,000 hours monthly.
Khazzam asserts these AI optimizations will enhance productivity for Float’s SMB customers, which he calls “the lifeblood of the Canadian economy.” Less time on tax receipts allows more focus on driving innovation.
“There is absolutely no question in my mind: Canadian companies can leverage this to grow economic prosperity, or we get left behind,” Khazzam said. “That’s the two paths ahead, and we know where we’re going.”
Regarding productivity figures, Khazzam isn’t overly concerned about the data yet. “It takes time, even for early adopters, to determine how and where to start.” For him, continued innovation in talent deployment and workflow automation will eventually boost productivity, but that’s what was said last year too.
Alex Riehl
Staff Writer
Ottawa
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Michael Yang has stepped down from OMERS Ventures as the fund shifts focus back to Canada. OMERS managing director Saar Pikar steps into a broader role, and Laura Lenz is elevated to managing director.
As M&A and IPOs lack distributions, secondaries are booming. Northleaf Capital Partners has raised $908 million CAD for its fourth secondary fund.
Payroll platform Wagepoint has appointed Ben Richmond of Xero North America as president and CEO, succeeding interim CEO Bill Hewitt. Wagepoint describes this as a shift from founder-led growth to scaling leadership.
Toronto-based OpenSesame AI startup co-founders Anthony Azrak and Jai Mansukhani gained a spot in a16z’s speedrun accelerator program. Despite Cohere CEO Aidan Gomez’s advice against it, they’re considering relocating to the US.
Former Toronto Raptor Pascal Siakam awarded $50,000 in grants to startups at the Siakam EdTech Engine Accelerator demo day.
Mantle introduces a free cap table management tool, Mantle Starter, for early-stage startups to aid in organization, investment readiness, and compliance.
Femtech Canada launched its commercialization program, Women’s Health Medical Pathway, offering $20,000 in assistance services to aid startups in women’s health innovations. Applications are welcome by July 30, 2025.
Weekly Canadian Deals, Dollars & More:
– Federal government supports new wildfire innovation hub.
– Eyam partners to develop $1 malaria vaccine.
– Ontario invests $5M in forest-based accelerator CRIBE.
– Dig Insights acquires OneCliq.
– Hyper exits stealth with $6.3M USD.
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Feature image courtesy Nicole Richard from Wax Pencil Imagery.