The future landscape of global geopolitical competition may extend beyond control over traditional resources such as oil and critical minerals, encompassing the domain of data and artificial intelligence (AI) platforms, particularly in the healthcare sector. Canada is positioned at a critical juncture where health data and AI technologies could drive significant advances in medical care, including earlier cancer detection, improved hospital resource allocation, and accelerated drug discovery. These capabilities are increasingly crucial for responding to pandemics and other health crises.

Canada faces both challenges and opportunities in this evolving environment. Prime Minister Mark Carney has highlighted the fracturing global order, which is prompting countries to reassess their economic and technological sovereignty. While health AI fits centrally within this debate, Canada is unlikely to compete directly with dominant players such as the United States and China in a high-stakes race for AI supremacy. Instead, experts suggest that Canada consider leading an alliance of middle powers focused on health AI, grounded in shared governance of data and collaborative technology platforms.

Canada’s health data assets are among the most valuable worldwide, benefiting from a universal, single-payer health system that generates comprehensive population-level data covering approximately 42 million people. Additionally, Canada’s diverse population—shaped by decades of immigration—offers a uniquely broad data set that could help address longstanding biases present in AI algorithms trained on less heterogeneous populations. This combination creates a strong foundation for developing health AI solutions with global applicability. The country’s recent prioritization of health within its AI for All Strategy marks a strategic starting point for realizing this potential.

However, Canada's efforts alone may not suffice. The development of AI is increasingly concentrated within a small group of American and Chinese firms possessing vast computational resources and scientific expertise. Furthermore, much of the world’s digital infrastructure is operated by U.S.-based companies subject to legal frameworks such as the CLOUD Act, which can compel data access for U.S. authorities. This dynamic creates vulnerabilities, exemplified by the U.S. government’s suspension of access to certain AI models for non-American users.

In response, European nations have implemented stringent data sovereignty regulations and, in some cases, banned American tech platforms to protect national interests. While these measures aim to secure control over national data, they also fragment the data ecosystem, limiting the scale and diversity necessary for developing fair and reliable health AI systems.

A coalition of middle-power countries presents an alternative approach, enabling the sharing of financial and technological resources while maintaining national control over data and algorithms. Advances in common data standards and federated analytics allow for AI innovation without necessitating cross-border data transfers. This model would allow algorithms to benefit from diverse, multinational data pools while keeping sensitive information within domestic boundaries.

Such a consortium could reduce dependency on U.S. and Chinese AI ecosystems and have significant economic implications, given that the global health AI market is expected to surpass US$1 trillion within the coming decade. Canada’s historical difficulty in converting scientific research into global market leaders could be addressed through leadership in this sector.

Beyond economic considerations, international collaboration on health data and AI could improve patient care by minimizing algorithmic bias and enhancing fairness, addressing widespread public concerns. Shared AI technologies could transform various aspects of healthcare delivery, including medical triage and pandemic preparedness, while fostering political cooperation in an era marked by increasing divisions.

As the infrastructure of modern medicine is being established, Canada’s tradition of coalition-building and institution creation positions it to play a vital role in shaping global health AI governance frameworks. This moment offers an opportunity for the country to assert influence and contribute to the evolution of health technology on the world stage.