Hello to Canada’s SaaS and AI Community,

With the federal budget now cleared to move forward (and Canada avoiding a destabilizing political reset) the focus has shifted firmly toward implementation.

The budget’s survival signals continuity, stability and permission for the government to begin executing on its major commitments: targeted tax measures, large-scale infrastructure funding and billions earmarked for technology, compute and innovation.

For SaaS and AI-native companies, this timing could not be more important. As capital markets tighten and global competition intensifies, founders need clarity, predictability and evidence that Canada is prepared to compete at the speed of technology.

At SAAS NORTH 2025, Evan Solomon, Canada’s first Minister of AI and Digital Innovation, joined C100 Executive Director Michael Buhr for a wide-ranging conversation about what this moment means. Solomon’s message was unmistakable: Canada intends to move from being the birthplace of AI ideas to the home of globally scaled AI companies.

Key takeaways:

• Canada’s new AI ministry is built to secure sovereign capability across the entire tech stack, from talent and research to compute, IP retention and commercialization.
• Federal budget reforms simplify SR&ED, introduce a 100% first-year write-off for tech investments and launch a billion-dollar venture growth fund.
• A new Office of Digital Transformation will act as a single procurement channel, helping government become a first customer for Canadian SaaS and AI products.
• A $1.7B global talent initiative aims to attract and retain the world’s top researchers and technical leaders.
• Solomon frames this era as “the age of the entrepreneur,” arguing that government must empower, not obstruct, Canada’s builders.

When Jo and her team at HTS (Hopper Technology Solutions) began exploring conversational AI, their goal wasn’t to deploy technology for its own sake, it was to build tools that deliver real outcomes for travelers. That practical focus now defines how HTS approaches every aspect of customer experience.

Grounding AI In Real Problems

Jo was clear about the challenge:

“AI in and of itself is not necessarily a business objective. It’s more so the how than the why or the what.”

At HTS, that principle guided years of experimentation.

The company began with airfare and hotel price prediction, helping travelers make smarter booking decisions. Over time, that same data-driven mindset led to HTS Assist, a new AI product launching that will be discussed live at SAAS NORTH 2025.

HTS Assist is an autonomous conversational agent that handles rebookings, cancellations, and refunds (tasks that traditionally required hours of manual effort).

“The biggest lesson,” Jo said, “is solving real problems. AI in and of itself is not the problem or necessarily the outcome.”

Designing AI As Teammates

Jo described HTS’ approach as designing organizations where humans and AI work side by side.

“We consider AI agents almost sort of new team members… just like people, AI agents need clearly defined responsibilities, integration into the right systems and environments, and transparent guardrails.”

HTS’ philosophy treats AI agents as accountable participants in the business, not just background processes.

Leaders decide which tasks AI should own end-to-end and where human judgment remains critical. For SaaS leaders, that approach provides a model for integrating AI into team structures with intention, not disruption.

Canada’s tech ecosystem has long been defined by its ingenuity and research leadership but not always its scale. Solomon was direct about the gap. Canada invented essential pieces of modern AI through its national institutes and early academic breakthroughs, but leadership is not guaranteed.

“Leadership’s not a birthright,” he said. “You got to work your butt off, and you’ve got to stay in the lead.”

Building A Ministry For A Transformative Era

The Ministry of AI and Digital Innovation was designed to address this head-on. Solomon framed its mandate simply: build the stack.

That includes:

• world-class talent attraction
• competitive, scalable capital
• sovereign compute and data infrastructure
• commercialization pathways
• procurement that rewards domestic innovation

The goal is to ensure Canada becomes what Solomon called a “headquarters nation.”

“We’re not branch plant nation, but headquarters nation. How do you keep the talent here? How do you keep the IP here?”

The new ministry’s role is to close the gaps that often push founders south (capital access, procurement inertia, and infrastructure disadvantages) so companies can build from Canada and scale globally.

Budget Measures That Directly Impact SaaS & AI Leaders

The federal budget includes several measures designed squarely for builders navigating competitive markets.

1. A 100% First-Year Write-Off for Tech Investments

The “super productivity deduction” aims to make Canada more competitive than the U.S. for tech investment.

“Canada’s marginal effective tax rate… will be lower than the United States,” Solomon said.

It’s a meaningful lever for companies debating where to place teams, IP, or capital.

2. SR&ED Simplification

SR&ED remains one of Canada’s most powerful innovation tools, but also one of its most painful.

“You don’t need a PhD just to apply,” Solomon said.

The reforms expand credits up to $6M and streamline the application to a simpler, single touchpoint. For founders balancing product sprints and fundraising, fewer bureaucratic cycles could translate to meaningful time saved.

3. A Billion-Dollar Venture Growth Fund

Scale-up capital remains one of Canada’s most significant gaps. The new venture growth fund is intended to support companies past the earliest stages, keeping more Series B and C raises in Canada and reducing dependency on foreign investors.

4. Sovereign Compute & Data Infrastructure

A $2.4B commitment includes a national supercomputer, major data-centre investments, and a $300M compute access fund for businesses.

“Access to compute is access to opportunity,” Solomon said, an increasingly true statement in an era where training and deploying models defines competitive advantage.

Procurement: Canada’s Potential Growth Engine

Perhaps the most resonant moment in the conversation came when Buhr noted that out of 30 emerging C100 companies selected this year, 28 secured their first major customers in the United States.

The barrier wasn’t talent or technology, it was adoption.

Solomon agreed this must change:

“If we don’t procure made-in-Canada… we’re not doing ourselves a favour.”

The new Office of Digital Transformation will consolidate procurement channels into a single destination for AI and digital innovation. Meanwhile, a Defence Investment Agency will adopt dual-use technologies more efficiently.

If successful, this shift could materially impact SaaS companies seeking validation, revenue, and reference customers, solving one of the ecosystem’s most persistent constraints.

Talent As A Strategic Asset

Keeping Canadian companies at home means keeping world-class teams here too.

Solomon pointed to a $1.7B talent initiative targeting global researchers and innovators, alongside accelerated pathways for technical talent, particularly those coming from markets where visas are restrictive or uncertain.

“Location matters,” he said, emphasizing the importance of anchoring talent early and giving them reasons to stay.

“The Age Of The Entrepreneur”

Solomon described this era as an unprecedented moment in modern economic history.

“It has never been easier to have an idea and to execute that idea,” he said.

With AI lowering the distance between concept and implementation, the government sees its role as clearing obstacles (not adding new ones).

Budgets, he argued, are stories and this budget is meant to signal confidence in Canada’s builders.

A Final Ask To Founders: Tell Us What You Need

Solomon ended with a role reversal:

“My ask is, what can I do for you? Because my job is to help you build.”

For a new ministry shaped around agility, iteration, and ongoing consultation, this was more than a closing line, it was an invitation.

He left the room with one message founders won’t forget:

“It’s pretty easy to sit on the sidelines and chirp… Builders know that the dogs bark and the caravans move on. You’re the caravan.”

As programs roll out, Canada’s SaaS and AI communities will be watching closely. The commitments are ambitious, the stakes are high and execution will determine whether this moment becomes one of real transformation.

SAAS NORTH will continue tracking the policies shaping Canada’s innovation economy and advocating for the builders shaping its future.

SAAS NORTH is Canada’s hub for scaling SaaS and AI companies. Founders, teams, and investors come to learn, connect, and grow with the country’s largest in-person tech community.