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CIRANO is pleased to announce the publication of a new Burgundy report written by Alain Dudoit, CIRANO Guest Fellow and Ambassador of Canada (ret.), entitled "Federal-Provincial Data Interoperability and AI Adoption: Leveraging the Current Federal-Provincial Momentum and the Canada-EU Strategic Partnership on AI."
Released in conjunction with the federal government's national consultation on the future of Canada's leadership in AI (October 1-31, 2025), this report is an important contribution based on evidence and intensive consultations with academics, public sector experts, and senior provincial and federal officials. The document demonstrates how data interoperability between the federal government, provinces, and territories (FPT) is a strategic and essential lever for accelerating the responsible adoption of AI, boosting productivity, strengthening Canada's digital sovereignty, and ensuring sustainable leadership in the era of the data economy.
"To make Canada a world leader in artificial intelligence and protect its digital sovereignty, data and system interoperability between governments is essential. It promotes responsible AI adoption, boosts productivity, and strengthens citizen trust. Together, the governments of the federation can turn this vision into concrete and impactful action," said Alain Dudoit.
KEY FINDINGS OF THE PUBLICATION
FPT data interoperability and responsible AI adoption are the digital backbone of a modern Canada, unlocking transparent and efficient citizen services, more accountable governance, and a stronger economy.
By facilitating the secure sharing of reliable data between jurisdictions, Canada can increase its efficiency, strengthen its digital sovereignty, and boost long-term productivity.
Interoperability is not simply a technological upgrade: it is a structural and strategic investment in Canadian governance, the economy, and democracy, creating the digital backbone for responsible AI adoption and citizen-centered public services.
Interoperability places citizens--as taxpayers, workers (individual or corporate), and users of public services--at the heart of government action by directly addressing their frustrations with duplication, delays, and inefficiencies related to complex and slow administrative processes. By streamlining data systems, governments can restore trust and improve the transparency of their actions.
Interoperability can transform Canadian governance by providing citizens with more consistent, faster, secure, reliable, and efficient services, while reducing the costs associated with administrative duplication.
The report shows that adopting harmonized data standards across jurisdictions reduces compliance costs for businesses and creates a more level playing field between jurisdictions.
FPT data interoperability acts as a lever for productivity and innovation, which is essential to supporting Canada's competitiveness in the global digital economy. Fragmentation hinders competitiveness, while interoperability unlocks the value of AI.
By adopting interoperable systems and best practices in digital governance, the public sector can act as a true catalyst. The author points out that the responsible adoption of AI in all sectors depends on the ability of governments to modernize, interconnect, and share data in a secure and consistent manner.
Finally, the report emphasizes the importance of building interoperable and secure systems to protect citizens' personal data, reinforce Canadian values, and preserve Canada's digital sovereignty.
The Burgundy report is available here: https://cirano.qc.ca/fr/sommaires/2025RB-01
In conclusion, CIRANO encourages decision-makers, business leaders, and civil society actors to take these findings into account in their contributions to the Canadian government's consultation on AI.