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Cohere Secures Major AI Deal with Canadian Government for 1,400 Users in ISED

Cohere’s North platform will automate tasks for 1,400 ISED employees, marking a pivotal AI deployment in the Canadian federal government’s modernization strategy.

The Canadian federal government is set to implement Cohere’s workplace AI technology, the North platform, to aid in automating various tasks for its staff. This initiative will provide access to the platform for up to 1,400 employees at the Department of Innovation, Science and Economic Development (ISED), marking a significant step for both the firm and Ottawa’s commitment to enhance productivity through AI by sourcing technology from Canadian companies.

Peter Wall, spokesperson for AI Minister Evan Solomon, announced the deployment, which is viewed as a notable milestone in Cohere’s efforts to penetrate the public sector. The technology aims to streamline operations within ISED, which employs around 5,900 people in total. The government is keen on utilizing such innovations as part of its strategy to modernize and enhance efficiency in its services.

Public servants will employ North for a range of functions including “search, summarization, drafting, decision support, and task automation.” Wall emphasized that this deployment represents a “real-world, at-scale deployment of Canadian AI inside the federal government.” Sohail Manoussi, Cohere’s lead for public sector initiatives, characterized this agreement as the firm’s “first major expansion of secure AI infrastructure into civilian government operations.”

The North platform allows users to set up and manage AI agents that can undertake assignments, thereby relieving staff of repetitive tasks. Cohere claims that the platform is secure and aligns with sovereignty requirements, which is expected to enhance employee efficiency. Manoussi noted that this deployment could serve as “a technical blueprint for how the rest of the federal government will modernize.”

Financial terms related to the procurement were not disclosed by either the federal government or Cohere. Ottawa has been vocal about its intent to prioritize Canadian technology solutions in its AI strategy as it seeks to compete in the global AI landscape. Cohere has positioned its offerings as particularly relevant for public sector applications, allowing organizations to run its technology on their own digital infrastructure, thus providing an alternative to U.S. tech giants.

Earlier initiatives within ISED have already seen the department utilize a Cohere AI model for the ParlBrief application, which transcribes, summarizes, and analyzes Parliamentary committee meetings. In August, Solomon and Procurement Minister Joël Lightbound signed a non-binding agreement with Cohere to explore the integration of its AI products into federal operations. The contract with ISED represents the first large-scale implementation stemming from that agreement, showcasing the government’s readiness to adopt high-performance AI in a responsible manner.

In addition to the federal contract, Cohere was awarded a $339,000 agreement by Shared Services Canada in November to make its models available for CanChat, an in-house AI assistant. The firm has also engaged with several defense contractors pursuing opportunities with the Canadian Armed Forces. As reported, Cohere previously held contracts with the Communications Security Establishment, further solidifying its presence in both civilian and defense sectors.

The Liberal government’s upcoming November 2025 budget proposes establishing a new Office of Digital Transformation to lead AI adoption across various departments. Many federal public servants currently have access to several AI applications, such as CanChat and Microsoft Copilot. Solomon has articulated that the government requires generative, agentic, and enterprise AI tools to facilitate modernization in government services. The innovation department is now focused on acquiring technology to enhance administrative processes and operational efficiency for the current fiscal year.

Among North’s notable clients are corporate giants such as Bell and RBC, alongside international clients like Saudi Arabian telecom company STC Group and U.S. healthcare software firm Ensemble Health Partners. Cohere typically charges clients based on usage of the North platform, which aims to alleviate the burden of mundane tasks from employees, as highlighted by co-founder Nick Frosst during a demonstration last August.

However, the implementation of AI within the federal government has raised concerns from public-service unions regarding its potential impact on job security and the nature of work for their members. As the landscape of government operations evolves, the role of AI in shaping future efficiencies will continue to be a topic of considerable interest and scrutiny.

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The AiPressa Staff team brings you comprehensive coverage of the artificial intelligence industry, including breaking news, research developments, business trends, and policy updates. Our mission is to keep you informed about the rapidly evolving world of AI technology.

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