From Lab to Launch: Four Ideas for Bridging AI Research and Real-World Adoption

October 1, 2025 – Canada has world-class strength in AI research but continues to fall short in widespread adoption, according to a new report from the C.D. Howe Institute. On the heels of the federal government’s announcement of a new AI Strategy Task Force, the report highlights the urgent need to bridge the gap between research excellence and real-world adoption.

In “AI Is Not Rocket Science: Ideas for Achieving Liftoff in Canadian AI Adoption,” Kevin Leyton-Brown, Cinda Heeren, Joanna McGrenere, Raymond Ng, Margo Seltzer, Leonid Sigal, and Michiel van de Panne note that while Canada ranks second globally in top-tier AI researchers and first in the G7 for per capita publications, it is only 20th in AI adoption among OECD countries. “This matters for the economy as a whole, because such knowledge translation is a key vehicle for productivity growth,” the authors say. “It is terrible news, then, that Canada experienced almost no productivity growth in the last decade, compared with a rate 15 times higher in the United States.”

The authors argue that new approaches to knowledge translation are needed because AI is not “rocket science”: instead of focusing on a single industry sector, the discipline develops general-purpose technology that can be applied to almost anything. This makes it harder for Canadian firms to find the right expertise and for academics to sustain ties with industry. Existing approaches – funding academic research, directly subsidizing industry efforts through measures such as SR&ED and superclusters, and promoting partnerships through programs like Mitacs and NSERC Alliance – have not solved the problem.

Four ideas to help firms leverage Canadian academic strength to fuel their AI adoption include: a concierge service to match companies with experts, consulting tied to graduate student scholarships, “research trios” that link AI specialists with domain experts and industry, and a major expansion of AI training from basic literacy to dedicated degrees and continuing education. Drawing on their experiences at the University of British Columbia, the authors show how local initiatives are already bridging gaps between academia and industry – and argue these models should be scaled nationally.

“Canada’s unusual strength in AI research is an enormous asset, but it’s not going to translate into real-world productivity gains unless we find better ways to connect AI researchers and industrial players,” says Kevin Leyton-Brown, professor of computer science at the University of British Columbia and report co-author. “The challenge is not that AI is too complicated – it’s that it touches everything. That means new models of partnership, new incentives, and new approaches to education.”

Read the Full Report

For more information, contact: Kevin Leyton-Brown, Distinguished University Scholar, Canada CIFAR AI Chair, Amii, and Professor of Computer Science, University of British Columbia; Percy Sherwood, Associate Editor and Communications Officer, C.D. Howe Institute, 416-407-4798, psherwood@cdhowe.org.

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada’s most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.

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