Government 'heavily dependent' on U.S. companies for AI tools, University of Toronto study finds
Research into the federal government's AI register reveals most departments lack in-house capacity and rely on Microsoft, OpenAI, and Google.
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The federal government is heavily dependent on American technology companies to power artificial intelligence tools across the public service, according to new research from the University of Toronto.
A study examining the government's public AI register — a list of roughly 400 current or planned AI uses across federal departments — found that many organizations lack the resources and expertise to build these systems themselves. For the Canadian Radio-television and Telecommunications Commission (CRTC), for example, three of four listed AI systems were developed by Microsoft.
Dipto Das, the study's lead author and a postdoctoral fellow at the University of Toronto, said the findings reveal a troubling gap between what the government promises and what it actually delivers. "There is a lot of discrepancies," Das said, noting that several departments are "entirely dependent on third-party developers, like Microsoft, OpenAI, Google."
The reliance raises serious questions about data security, government control, and whether Canadian taxpayers are effectively subsidizing U.S. technology infrastructure. Das flagged concerns about how secure government data remains when stored on external servers, and how much sovereignty Canada retains over the systems it relies on.
Canada's national AI strategy, released in June, promised to accelerate AI procurement and delivery across federal departments while keeping humans involved in decision-making. The strategy also committed to launching a new Office of Digital Transformation, first promised in Budget 2025 — which has not yet been created.
The Treasury Board of Canada Secretariat, which oversees the AI register, did not respond to requests for comment by deadline. The study notes its findings are limited by what departments chose to disclose publicly — some may be using AI systems not listed in the register.
How many government AI systems are still being developed entirely in-house versus sourced from external vendors?
What safeguards exist to protect Canadian taxpayer data processed through U.S.-controlled AI systems?
When will the Office of Digital Transformation, promised in Budget 2025, actually be created?
We'll update this story as answers emerge.
By the numbers
How many AI uses are listed in the federal government's public AI register?
The government's public AI register contains roughly 400 current or planned AI uses across federal departments.
What U.S. companies does the federal government rely on most for AI tools?
Microsoft, OpenAI, and Google are the primary American technology companies powering artificial intelligence tools across the Canadian public service.
How many of the CRTC's listed AI systems were developed by Microsoft?
Three of the four AI systems listed by the Canadian Radio-television and Telecommunications Commission were developed by Microsoft.
