Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning ICT, cloud computing, digital infrastructure, social media platforms, digital privacy, AI, cybersecurity, blockchain, and Web3. Every Monday, we break down the most important updates in this space in under five minutes.

Want to track other GR news in adjacent industries? Don’t miss this week’s updates in Finance.

Dates: 2025-12-14 to 2025-12-20

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal Government News
• 🗺️ Canadian Provincial Government News
• 📚 What We're Reading This Week

Canadian Federal Government News

Government of Canada signs Memorandum of Understanding with Coveo for AI Innovation in Public Services

The Government of Canada has signed a memorandum of understanding (MOU) with Coveo Solutions Inc., marking a new step toward incorporating Canadian-developed AI-powered enterprise solutions across its operations. Shared Services Canada and Innovation, Science and Economic Development Canada will partner with Coveo to explore applications of generative and agentic AI, including advanced search and recommendation engines, in federal departments. The collaboration will assess practical use cases aimed at modernizing internal operations and improving service delivery to citizens and businesses, while supporting Canadian talent and domestic innovation. Specific areas of focus include increasing productivity, reducing administrative burden, and enhancing digital sovereignty by leveraging homegrown technology for government transformation. Through this agreement, the government maintains its agenda of building a more resilient and efficient digital infrastructure and supporting high-quality technology sector jobs in Canada.

Sources: www.canada.ca

Details of MOU with Coveo Provided: Generative and Agentic AI to Be Piloted

The official background to the Coveo MOU provides a technical breakdown of how generative and agentic AI differ in capabilities and potential for deployment across federal services. Generative AI is positioned to automate content creation (text, reports, imagery), while agentic AI is described as able to break down objectives, retrieve data, and manage process workflows with limited human intervention. This foundation enables the government to pursue practical pilots that not only enhance efficiency but also contribute toward a trusted, sovereign AI ecosystem capable of safeguarding government data. The agreement positions Canadian technology at the forefront of government-wide modernization initiatives.

Sources: www.canada.ca

Phase 1 of Canadian Quantum Champions Program Launched with Significant Industry Investment

The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, announced the launch of Phase 1 of the Canadian Quantum Champions Program in Toronto, backed by an investment of up to $92 million. Four Canadian companies—Anyon Systems, Nord Quantique, Photonic, and Xanadu Quantum Technologies—have signed agreements to receive up to $23 million each for development of fault-tolerant, industrial-scale quantum computers aimed at real-world industry applications. This initiative, part of the previously announced $334.3 million five-year envelope in Budget 2025, will anchor quantum innovation and talent domestically and promote defensive capabilities in cryptography and threat recognition through the National Research Council’s new Benchmarking Quantum Platform. The program’s advancement will be aligned with the coming Defence Industrial Strategy, with additional details about future milestones promised as CQCP progresses.

Sources: www.canada.ca

Government of Canada Invests Over $19 Million to Develop AI Ecosystem in Southern Ontario

On December 17, Minister Evan Solomon and MP Chi Nguyen announced over $19 million in funding for 20 AI and technology businesses in southern Ontario, including organizations such as A.I Vali Inc., Armilla AI, and the Ontario Brain Institute. These investments support the adoption of AI across multiple industries and accelerate solutions to market. The Ontario Brain Institute will receive $2 million to expand its Centre for Analytics with secure, bias-free AI tools for brain health applications. The funds are allocated through the Regional Artificial Intelligence Initiative and are intended to reinforce Ontario’s AI ecosystem and enhance AI’s safe, responsible adoption for economic competitiveness.

Sources: www.canada.ca

CRTC Introduces New Accessibility Mandates for Broadcasting under Modernized Act

The CRTC will require both television and online platforms to make new original scripted programming available with described video, and news or information programs equipped with audio description, benefitting Canadians who are blind or partially sighted. These enhancements follow a public consultation on content accessibility and respond to requirements in the modernized Broadcasting Act. Platforms will be given a two-year phase-in period for compliance. The regulatory changes intend to modernize the broadcasting framework and align with the government’s ongoing Broadcasting Act implementation agenda.

Sources: www.canada.ca

StatsCan Releases Telecommunications Services Producer Price Indexes for Q3 2025

Statistics Canada has made available third quarter 2025 data for the telecommunications services producer price indexes (using Q1 2020=100 as a base). Data are available upon request from StatsCan. These indexes provide important economic indicators for pricing trends within the sector.

Sources: www.statcan.gc.ca

StatsCan Issues Suite of Tools for Misinformation Detection in Data

Statistics Canada launched tools and training materials designed to help policymakers and decision-makers assess the credibility, relevance, and quality of statistical sources, supporting improved data literacy in an environment where misinformation is a growing concern. The resources are accessible via the Data literacy training learning catalogue and feature a step-by-step guide and companion video.

Sources: www.statcan.gc.ca

Statement Issued on Proposed Settlement in Sweet v HMK Class-Action Suit Regarding Cybersecurity Incident

The Treasury Board of Canada Secretariat released a statement following an agreement on a proposed settlement in the Sweet v HMK class-action suit stemming from the August 2020 credential stuffing attack on the GCKey and Canada Revenue Agency accounts. The Federal Court has scheduled a settlement approval hearing for March 31, 2026, with information on the proposal and opt-out procedures available on Canada.ca. Impacted individuals were previously notified, and further questions can be referred to Class Counsel.

Sources: www.canada.ca

Minister Champagne Concludes European Tour Advancing Technology and Defence Partnerships

Minister François-Philippe Champagne concluded a European visit to France, the UK, and Germany, reinforcing Canada’s trade and defence ties. Notable outcomes included the announcement by ChapsVision, a European data processing and AI company, to establish its North American headquarters in Montreal, creating up to 100 jobs. Additional meetings centered on innovation, resilient supply chains, and the Volkswagen–Canada electric vehicle supply chain partnership. The trip saw Minister Champagne engage with European officials, investors, and key international organizations on issues relevant to ICT, AI, and advanced manufacturing.

Sources: www.canada.ca

FedDev Ontario Announces Upcoming AI Innovation Event in Toronto

The Federal Economic Development Agency for Southern Ontario announced an AI innovation-focused event in Toronto for December 17, to be led by Minister Evan Solomon and MP Chi Nguyen. Media were invited to register for the event, which supports continued engagement with industry and regional stakeholders in the AI ecosystem.

Sources: www.canada.ca

Canadian Provincial Government News

Ontario Announces Toronto Bid for Defence, Security and Resilience Bank Headquarters

The Ontario government, in partnership with Toronto and industry groups, launched a campaign to establish the Defence, Security and Resilience Bank headquarters in Toronto, highlighting the city’s financial, talent, and defence innovation strengths.

Sources: news.ontario.ca

Ontario Supports Companies Impacted by U.S. Tariffs Through $16.5 Million Fund

Ontario is investing $16.5 million under the Ontario Together Trade Fund to support businesses affected by U.S. tariffs, facilitating projects in advanced manufacturing, electronics, and AI-enabled medical technology, which are expected to create and protect jobs across several key firms.

Sources: news.ontario.ca

What We're Reading This Week

• Federal Contracts Now Demand Quantum Resilience as Data Harvest Accelerates: Coverage of the evolving procurement standards for quantum-resistant security.
• More TV, radio stations could shutter if Online Streaming Act is scrapped, industry leaders warn: Industry concerns about potential media closures if federal streaming legislation is withdrawn.
• UK government acknowledges it is investigating cyber incident after media reports: The UK’s response to recent cybersecurity incidents affecting government systems.
• U.S. halts implementation of $40-billion tech deal with Britain over digital, food regulation: Pause of a major US-UK tech agreement amid regulatory disputes.
• AI Attacks Surge 156% as Quantum Threats Force Encryption Overhaul: Reports on the sharp increase in AI-enabled cyberattacks and its impact on encryption practices.
• U.S. targeting dairy, Online Streaming Act in USMCA negotiations, top Trump trade official says: Indications that the Online Streaming Act is becoming a focus in USMCA trade talks.
• Atsign Brings Advanced Enterprise Security to the Home Lab for Free: New tools offering enterprise-grade cybersecurity to individual users.
• More TV, radio stations could shutter if Online Streaming Act is scrapped, industry leaders warn: Additional analysis on the legislative environment for Canadian broadcasters.
• Federal Contracts Now Demand Quantum Resilience as Data Harvest Accelerates: Review of government requirements influencing ICT procurement around quantum resistance.

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