Canada partners with Coveo to modernise AI public services

The Canadian government has signed a memorandum of understanding with Montreal-based artificial intelligence firm Coveo as it pushes ahead with plans to modernise public services and embed domestic AI systems in federal operations.

The agreement sets out a framework for collaboration between Ottawa and Coveo around the use of AI search and "AI relevance" technology across government departments and agencies. The work will focus on AI‑powered digital experiences for both citizens and public servants.

Officials described the partnership as part of a wider effort to increase the use of Canadian-built AI in public administration and to reinforce the country's control over key digital infrastructure and data.

The memorandum of understanding does not, in itself, constitute a procurement contract. It establishes a structure for joint work on pilots, proofs of concept and potential roll-outs in selected programs.

AI in public service

Under the memorandum, the government and Coveo will explore ways to use a mix of AI, machine learning, and large language models to reshape how people access information and services and how internal government processes function.

The government expects this operation to support faster access to information, more consistent responses, and lower operating costs in some areas.

Officials also link the initiative to policies around digital sovereignty. They want critical public-service technologies, including AI search engines and relevance platforms, built and managed under Canadian jurisdiction where possible.

Canada has set out national ambitions in AI over recent years, backed by research clusters in Montreal, Toronto and Edmonton. The government is now moving from research support into operational deployment across public-sector systems.

"By working with a leading Canadian company through this memorandum of understanding, we are exploring how homegrown Al solutions can help modernize government operations, strengthen digital sovereignty, and improve how services are delivered to people and businesses across the country," said Evan Solomon, Minister of Artificial Intelligence and Digital Innovation.

Citizen-facing services

The partnership will prioritise digital services that face the public. That includes areas where people currently navigate multiple websites and call centres for information on benefits, immigration, procurement, or regulatory compliance.

Coveo's AI search and relevance systems ingest and index large bodies of content and data. They rank and personalise results for individual users based on context and behaviour. In a government setting, this could mean search tools that surface specific answers or guidance rather than long lists of documents.

The government also plans to examine potential uses for internal knowledge management. That could include tools for public servants who need to locate policies, case guidance or technical material across fragmented internal repositories.

Coveo positions its "AI relevance" technology as a way to match content and answers more closely to an individual's situation. The company works with a variety of corporate and public-sector clients internationally. It now sees the federal partnership as a significant reference project in the public sector.