Canada Turns to EU for AI Agreements as Montreal Hosts G7 Digital Tech Ministers

Canada has kicked off its G7 presidency with a decisive move to strengthen its digital alliance with Europe, signing a major new agreement on artificial intelligence with the European Union on Monday.

The deal was unveiled by Canada’s Minister of Artificial Intelligence and Digital Innovation, Evan Solomon, and European Commission Executive Vice-President Henna Virkkunen, as digital and technology ministers from the world's most powerful economies gathered in Montreal for a high-stakes summit.

A "Reservoir of Trust"
The new Memorandum of Understanding (MoU) on Artificial Intelligence cements a growing alignment between Ottawa and Brussels on how to manage the explosive growth of the technology. While the United States, under the Trump administration, has signaled a deregulation-first approach, Canada and the EU are doubling down on "responsible innovation."

"In the global economy where trust is becoming a scarce commodity, the EU and Canada share a deep reservoir of trust," Minister Solomon said at a joint press conference. "Combined with our technological capabilities, we are positioned to lead responsibly, lead with our shared values and trust on AI."


The agreement commits both jurisdictions to:

Align Standards: collaborate on common frameworks for AI safety and regulation.

Share Research: Increase scientific cooperation on fundamental AI research and talent development.

Boost Adoption: Work together to integrate AI into strategic economic sectors like healthcare, manufacturing, and energy.

A second MoU was also signed focusing on digital credentials, aiming to create interoperable systems for digital identity and trust services across the Atlantic.

The "Elephant in the Room"
The Montreal meeting comes at a delicate geopolitical moment. With Canada hosting the G7 presidency, the summit is tasked with finding common ground among allies who are increasingly divided on tech policy.

Reporters at the summit questioned how Canada plans to navigate the widening gap between the EU’s strict regulatory stance (embodied by the AI Act) and the U.S. push for unfettered development. Minister Solomon acknowledged the diverging paths but emphasized that the goal of the G7 is to find "coherence" on foundational issues like safety and interoperability.

"Every country is going to chart its own path," Solomon noted. "But we have a shared series of values... making sure we don't constrain innovation."

Montreal as the Global Hub
The choice of Montreal as the host city underscores Canada’s status as a global AI superpower. Home to Yoshua Bengio and a thriving ecosystem of deep learning startups, the city serves as a fitting backdrop for discussions that will shape the future of the digital economy.

In addition to the EU deal, Canada also announced a new partnership with Germany focused on quantum technology and digital sovereignty, further signaling Ottawa's intent to diversify its technological alliances beyond North America.

The G7 ministers' meeting continues through Tuesday, with discussions expected to cover supply chain resilience, quantum computing, and the "unprecedented speeds" of technological change reshaping the democratic world