December 5, 2025

Bay St Signal Editors

AI spending accelerates in Canadian health care

Artificial intelligence is moving from demo to delivery in Canadian health care. The push is being led by domestic infrastructure builds and targeted tools meant to reduce wait times and admin work.

Globally, AI is helping with imaging and triage, a trend Canada is now adopting at scale. The test is simple, more care, faster, with strong privacy rules.

From pilots to provincial procurement

Telus and League set out a plan in September to run League’s care platform on what Telus calls a sovereign AI factory, with data stored and processed in Canada. Executives framed the pitch as secure, made‑in‑Canada capacity for clinical workflows and patient navigation.

“This collaboration represents the future of Canadian healthcare,” said Hesham Fahmy, chief information officer at Telus.

League’s founder added the tie‑up will scale AI agents while meeting privacy and compliance needs. “Our partnership with TELUS allows us to scale our AI‑driven solutions while maintaining the highest standards of data privacy,” said Michael Serbinis.

Capital spending is rising behind the scenes. In May, Telus outlined more than C$70 billion in investment through 2029 and flagged two AI facilities, in Kamloops and Rimouski, to support model training and deployment.

The plan leans on domestic power and connectivity, and is pitched as a way to keep sensitive workloads onshore. Health use cases will be among the early tenants, from scheduling to diagnostics. The direction is clear, build the compute at home, then layer apps on top.

Data rules shape market rollout

Ottawa’s device regulator is already applying an international framework for software that performs a medical purpose on its own. Health Canada classifies such software as Software as a Medical Device, or SaMD, and treats it like any other device class, with licensing based on risk.

The guidance spells out what counts as SaMD, for example software that acquires, processes or analyzes medical images. That definition matters for vendors and hospital buyers in Canada, since approvals and labelling flow from it.

Procurement is also moving. Canada Health Infoway launched a national AI Scribe Program in June with up to 10,000 one‑year licenses for eligible primary‑care clinicians. An AI scribe listens to a visit and drafts a clinical note, which the clinician reviews before sign‑off. Infoway pre‑qualified a small group of vendors, and sign‑ups run through provincial channels. The program’s aim is simple, cut paperwork so clinicians can see more patients. Full details sit on Infoway’s program page.

The mix of sovereign compute, risk‑based device rules, and funded pilots lowers barriers for Canadian operators. Telcos and health platforms are positioning to sell tools into clinics, imaging suites and provincial networks. That will not fix staffing gaps by itself, but it can speed throughput in high‑volume tasks.

The next markers to watch are clinical outcomes and scale, not just pilots, and whether Ottawa tightens AI rules as use shifts from admin to diagnosis. Telus has signalled the hardware and partnerships, and Infoway has opened a door to adoption.