Opinion: A call for an artificial-intelligence alliance among friendly nations

Tawfik Hammoud is Managing Director and Senior Partner At Boston Consulting Group. Terence Smith is the Director of BCG’s Centre for Canada’s Future.

We are witnessing the dawn of a paradigm shift that will transform technology and society. Generative artificial intelligence (GenAI) and, soon, artificial general intelligence (AGI) promise to turbocharge economic growth and drive waves of innovation.

Although concerns about its potential misuse are valid, AI’s capabilities will reshape industries, from health care and agriculture to transportation and education. Some estimates place its global impact at up to US$19.9-trillion by 2030, making it one of the largest economic shifts in recent history.

That is why an AI-focused alliance is needed today to steer global AI development responsibly and ensure economic security for the future. Canada must position itself as a leader in this transformation, ensuring that allied nations establish a secure, competitive foundation in the future AI landscape.

To drive the AI transformation, five critical pillars must be in place: large data centres powered by cutting-edge servers and AI chips, vast amounts of electricity and cooling (ideally low-carbon or carbon-free), hundreds of billions of dollars in capital, robust regulatory and security frameworks and strong public-private sector leadership to integrate AI sustainably into organizations.

While parts of the AI landscape may be overhyped, key questions remain: Where will we source the estimated 80 gigawatts of electricity needed to power new data centres? How can we overcome supply chain challenges for chips and advanced cooling systems? And who will fund the estimated US$300-billion required annually for AI infrastructure?

Globally, forward-thinking countries and companies are already moving ahead. The U.S. CHIPS and Science Act, for instance, is investing US$280-billion in semi-conductor research, manufacturing and worker training; while BlackRock, Microsoft and Abu Dhabi-based infrastructure investment company MGX are mobilizing US$100-billion to build AI data centres and support infrastructure.

Canada, on the other hand, risks falling behind in the global AI race. Our largest data centre market, Toronto, has only one-third of Chicago’s capacity, and globally, Canada’s AI footprint is often overlooked. Alberta is making a concerted effort to lure AI data centre investment, supported by large reserves of low-cost natural gas, world-class carbon storage potential, cold weather and a faster regulatory environment – but no concerted effort is visible nationally.

With the rise of AI reshaping global power dynamics and becoming central to national security, economic strength and international co-operation, Canada has a unique opportunity to secure a competitive advantage by championing frameworks and tools in alignment with its allies.

The scale of investment needed for AI infrastructure is massive – too large for any one country to bear alone. An AI alliance could facilitate collaboration on funding, regulation and resource allocation. We need a collaborative approach with like-minded allies that’s co-ordinated on spending, power, infrastructure development, supply chain and regulations. Otherwise, we risk the world turning into an “AI archipelago,” with Canada as an isolated northern island.

An AI alliance could focus on economic competitiveness. In doing so, it could foster collaboration in three essential areas: standards alignment, burden-sharing and co-ordinated risk management.

Unified standards for regulations and equipment would streamline interoperability across borders, enabling members to leverage unique strengths – such as secure data centres in some countries and high-capacity computing in others – while ensuring AI technologies are compatible and accessible.

Burden-sharing would distribute resources and responsibilities fairly, with each nation contributing to infrastructure, funding, or expertise to support the alliance’s shared AI ecosystem; for instance, Canada could provide cleaner, lower-cost power to support expanded low-carbon energy capacity.

Co-ordinated risk surveillance and joint training would further enhance security, establishing networks for AI and cybersecurity intelligence-sharing and equipping policy makers and technical leaders to tackle AI’s challenges.

AI’s broad impact on economic security, regulatory standards and civilian sectors requires engaging diverse stakeholders such as industry leaders and economic policy makers. A dedicated AI alliance would allow for the flexibility and cross-sector collaboration necessary to tackle AI’s unique challenges across both security and economic domains. The stakes are too high for isolation.

Canada, with its history of alliance leadership – from NATO to the International Energy Agency – must take the lead in proposing an AI alliance amongst peer nations, ensuring AI development aligns with shared values, security and global stability. Today, we must take up the mantle of statecraft again by teaming closely with the US to lead a new AI alliance. We can only hope that we will see this idea discussed at the coming June, 2025, G7 in Kananaskis, Alberta.