Obviously, our focus at the Vector Institute is really about how we create the right conditions to drive that private sector investment. There are obviously no concerns around a lack of research excellence here in Canada, but it's really a translation and confidence issue with three specific root causes.
First, we do have a cultural risk aversion combined with a lack of trust. We've seen polls indicating that 51% of Canadians are concerned about generative AI and misinformation. The Office of the Privacy Commissioner of Canada's public opinion research on privacy issues showed that 83% of Canadians have privacy concerns when using AI tools. These concerns translate directly into business hesitation. When business leaders lack confidence in AI safety and governance frameworks, they delay investment.
Second, we know that there is insufficient research into application infrastructure. The Vector Institute has observed that promising research areas in AI shift multiple times per year. Traditional university hiring cycles and government grant structures simply cannot respond to that pace. The Vector Institute has built a fast-follow capability through its AI engineering team, which specializes in extracting value from research in a practical manner. Most Canadian firms lack that talent bridge between breakthrough research and business implementation. In order to de-risk and to drive confidence, we need to bridge that more effectively.
Third, the demonstration effect from government cannot be understated. When only 26% of Canadian companies adopt AI versus 34% globally, it reflects a lack of confidence. The more government can demonstrate confident, transparent AI adoption in its own operations and in the sectors it funds, the more private sector confidence can follow. We can drive that investment to continue to move up. Government itself can really be the proof of concept that shows AI can be trustworthy and Canadian-controlled, or it can facilitate market access for AI start-ups and scale-ups in Canada to create a pathway to securing their first institutional customer.