Ontario’s AI ecosystem: fueling real economic growth with record number of jobs and private investments

Over 17,000 new artificial intelligence (AI) jobs created
Private investment in Ontario AI companies reached $2.6 billion, up 69% year-over-year in 2024-25
70 new AI companies established in Ontario

TORONTO, June 18, 2025 (GLOBE NEWSWIRE) -- Today, the Vector Institute released its fourth annual Ontario AI Snapshot, produced in partnership with Deloitte Canada. The research indicates that the province’s AI sector has grown significantly, cementing Ontario’s position as a leading global AI hub. Buoyed by its remarkable concentration of AI talent, the sector is attracting major investments and creating well-paying AI jobs that directly support economic growth.

The data specifically indicates that:

In 2024-25, Ontario's AI job market underwent a significant shift, with 17,196 jobs created (+101%) and 39,327 jobs (+8%) retained, driven by growing demand for AI professionals and the expansion of AI initiatives. The job creation and job retention numbers show healthy recovery from last year’s job losses, as many displaced professionals were reabsorbed into other hiring AI companies.
There were 5,605 well-paying positions (+26%) filled by highly qualified professionals from AI- related academic programs, which confirms that Ontario continues to excel at AI talent growth.
70 new AI companies were established in Ontario (+312%), and 27 companies relocated to Ontario (+93%), which suggests Ontario remains an attractive investment destination, with Toronto leading the country in the number of AI startups (50 Toronto-based AI start-ups).
413 companies invested a total of $2.6 billion CAD in Ontario-based AI companies–an 8% and 69% increase, respectively.
The Ontario AI sector continues to attract more VC funding ($2.6B) than several other sectors combined e.g., energy ($209M), manufacturing ($111M), financial services ($540M), and agriculture ($19M).
An estimated $560 million was spent on AI R&D in Ontario, which is a 36% decrease compared to the previous year. This data aligns with the country’s global positioning in R&D expenditure, which has been in decline [compared to other G7 countries].
Only half (51%) of companies currently leveraging AI have organization-wide AI strategies implemented or in-development, which is unchanged since 2020.

"Canada ranks first among G7 countries in AI talent growth due in large measure to Ontario’s strong and growing concentration of AI experts. Vector’s latest AI snapshot confirms this. The data also indicates that Ontario is becoming a powerful draw for AI companies and investment, providing a direct boost to our economy. To maintain this momentum, we need to ensure leadership in other key areas: we need to increase R&D investment and step up our rate of adoption. Today’s reality is that no matter the size of your business – no matter the field you’re in or the market you serve – there is a place and a use for AI. It is time to use our AI advantage to make competitive gains, close the productivity gap and attract and retain top talent,” said Glenda Crisp, President and CEO of the Vector Institute.

"It is acknowledged worldwide that Canada leads in AI talent growth. Materially improving our compute infrastructure, R&D investment, and most significantly, adoption of AI solutions to drive productivity, are critical to retaining top-tier talent and training future talent. Ontario, as an AI hub, is seeing growing VC investments and a surge in new companies. Now is the time to scale these companies and make them globally successful to continue our leadership in the global AI community," said Anthony Viel, CEO of Deloitte Canada.

Covering the period from April 1, 2024 to March 31, 2025, the latest Ontario AI Snapshot tracks 10 metrics, which include AI job creation, investment and commercialization. These metrics serve as benchmarks for measuring the collective progress of governments, businesses, and institutions in strengthening Ontario’s AI ecosystem. Further data on the growth of the Ontario AI ecosystem is included in this year’s version of the Snapshot.

The research is based on a combination of business executive surveys (185 executive survey responses), and market insights from industrial and public databases.

About Vector Institute

The Vector Institute is an independent, not-for-profit corporation dedicated to advancing artificial intelligence, excelling in machine learning and deep learning. Our vision is to drive excellence and leadership in Canada’s knowledge, creation, and use of AI to foster economic growth and improve the lives of Canadians. The Vector Institute is funded by the Government of Ontario, the Government of Canada through CIFAR Pan-Canadian AI Strategy, and industry sponsors across Canada.

For further information or media enquiries, please contact: media@vectorinstitute.ai

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.