Vector Institute – Canadian AI job market shifting, favouring specialized, in-demand skills

On October 30, the Vector Institute issued a new report, prepared by the Conference Board of Canada in partnership with the Future Skills Centre, aimed at better understanding and addressing challenges in building an artificial intelligence (AI) capable workforce in this country. The “Artificial Intelligence Talent in Canada” report highlights a significant shift in Canada’s AI talent landscape with implications for businesses, job seekers, and post-secondary institutions. 

The report reveals a 37% increase in demand for core AI skills from 2018 to 2023. The growing demand is driven by rising needs in knowledge areas like machine learning, deep learning, and AI ethics and governance, which are directly related to AI development and application.

In contrast, demand for peripheral AI skills those supporting AI use but applicable in other contexts dropped by 46.4% during the same period. The decrease in demand for peripheral skills like software development and design or cloud computing suggests that automation tools and programs are increasingly augmenting these skills.

“This report offers a crucial industry perspective on AI hiring,” said Melissa Judd, Vice President of Research Operations & Academic Partnerships at the Vector Institute. “It highlights three critical findings: a significant increase in demand for AI skills, the fundamental importance of deep technical expertise for employers, and the abundance of these skills in Canada’s workforce. Early national investment in AI talent development has positioned Canada as a leader in this field. We must now focus on cultivating translational skills that bridge technical expertise with business and domain-specific applications, and increase capacity in AI governance to capitalize on this leadership.” 

Other findings from the report include:

• Skills related to running AI systems and managing machine learning projects experienced the largest growth with job postings in Canada increasing by 48% and 60% respectively since the lifting of pandemic restrictions. 
• Canadian start-ups and scale-ups still face challenges in hiring senior, specialized employees, often losing candidates to competitors in Canada and the United States.
• Larger Canadian organizations in AI-adjacent sectors such as health, retail, and transportation each report challenges in AI adoption, including cost concerns and a lack of AI literacy among decision-makers.
• While the United States leads in AI adoption and research investment, it faces a significant talent shortage, particularly in advanced AI skills. In contrast, Canada boasts a robust AI talent pool but must focus on leveraging this pool to boost industry adoption and investment. Achieving this leverage is key to attracting and retaining top AI talent and researchers and ensuring Canada remains at the forefront of AI innovation.

To maintain Canada’s AI talent edge, the report contains key recommendations including:

• Strengthening AI education: Continue producing top-tier AI specialists through advanced research programs at Canadian post-secondary institutions, leveraging Canada’s existing global AI advantage, and expanding programs that foster cross-disciplinary expertise in AI and domains such as health and finance. Canada also needs to support high-quality training for people to integrate AI tools into their existing roles and become more resilient during future labour market changes.
• Boosting business R&D: Encourage Canadian companies to increase investment in AI R&D, creating opportunities for top talent to innovate domestically and drive economic growth.
• Bridging academia and industry: Expand work-integrated learning programs, such as internships and co-ops, to connect students with real-world data and AI applications and to help businesses access a skilled AI workforce.
• Empowering C-suite leadership: Educate executives on AI’s potential, ethical implications, and responsible use to help drive informed decision-making on AI adoption.
• Implementing AI governance: Establish structures addressing ethics, privacy, and security to build trust and overcome adoption barriers.

“While Canada excels at developing technical talent, a lack of capital investment in research and development as well as slow adoption of emerging technologies threatens to erode this competitive advantage,” said Alain Francq, Director, Innovation and Technology at The Conference Board of Canada. “Continuing to cultivate top-tier AI talent and retaining these professionals will be crucial if Canada is to remain competitive in the global AI landscape.” 

“Technical AI skills are in high demand, but they first require strong foundational information processing abilities. Just as important are soft skills like teamwork and critical thinking, which remain future-proof and, when combined with technology, amplify impact,” said Noel Baldwin, Executive Director at the Future Skills Centre. “As AI reshapes the workforce, ongoing training, lifelong learning, and collaboration between governments, employers, and workers are essential to help people transition into new roles and gain the skills to thrive.”

To learn more, read the full “Artificial Intelligence Talent in Canada” report