Enterprise AI and Digital Sovereignty with Tom Jenkins and Major General Retd David Fraser

Welcome. My name is Techi Sarantakis. we have yet another treat for you today at the Canada School of Public Service. Today we have something that everybody is talking about right now. And no, it's not Taylor Swift and it's not who's the other guy who just did the Super Bowl. It's not the angry rabbit. It is AI. And AI as you all know is something that not only is kind of dominating the discourse right now, it is also going to dominate lot of other things. So we have two wonderful speakers. will introduce them very very briefly. The first is Tom Jenkins. Tom is the chair of Openext and Openext is wonderful Canadian success story. Tom is one of the very very few individuals in Canada who has taken something and scaled it to global level and then kept it there for over 30 years. It is very very very rare for anybody to play on the global scale for three decades. And it's even more rare for that to be Canadian. He is also one of the This is going to sound stupid, but he's actually one of the inventors of the internet. So you can look that up. He's his company is the reflection of Google. When you go search something, you're searching the internet. Tom long long time ago realized that you also needed to search within your company. So Tom is like the Google of the internet. The second is retired major general David Frasier Operation Medusa. If you know, you know. If you don't, Google it. You And there's also copy for those joining us in person. if you want to go forward. So this is the second time we are having these gentlemen here. The first time they came and talked to us about the anticipant organization and by that what they meant is machines are now so quick and so fast that if you're reacting you've already lost. You need to be an organization that anticipates things rather than reacts to things. And today we're going to be talking about their latest book which is AI enterprise and cloud. And one thing before turn it over to them to start their presentation, if you use chat GPT and you use anthropic and you use open you use open AI and you don't have subscription, you've never used enterprise AI. So just keep that in mind, too. Tom, over to you guys. I'll start and then my partner in crime here will jump in. pleasure to see so many familiar faces. Nice to see you all. we're here to talk about something that many of you are curious about and we're going to try our best to take you down inside how this stuff works. But to keep it at high level, as my partner in crime here, General Fraser, he says, "Look, Tom, if you can get an army general to understand it, anybody can understand it." So that that is is his humble way of saying that we've tried to make it for non-technical people. But of course when General Fraser talks to you, you'll see what unbelievable implications it has because he speaks as the user to all of this. So let me get the slides and we'll get right into it. so we're going to talk about something called agentic bots. So, so we're past the world of just saying AI. You're not allowed to say just AI anymore. We're now starting to go into the granularity of AI. And we're going to try and tease that out with the book. And all the books are at the back. And these books are also available electronically. And you'll see one of the reasons why we wrote the book is that everyone's in the same boat as you that they are grappling with. Okay. beyond Chad GBT and and what Tiki had referred to, what do we do about it? And and that's when it gets really complicated. What do you do about it? our authors are myself and Dave Fraser and Shannon Bell, wonderful rising star in Canada. she was the CIO of Rogers. She was the CIO of Amdoc in New York. she's from Stratford, Ontario, and she's the CIO and CO of Openext. So she unfortunately right now is with Minister McGinty in Sydney, Australia doing the defense consortium there and we can talk about that later. Visually what you'll see there on the slide are is really trilogy and this book is really the howto if if you read the the subtitle. The next book we're going to tease it little bit is the is the next book. This is sort of like Star Wars trilogy where we started in the middle and now we're going back to the beginning. That kind of thing. and then the last book is actually the first book. So, if you're tracking all that, you're doing very well. The anticipant book is being rewritten to take advantage of ChatGBT and some of the new terms we have because when we wrote anticipant, we were anticipating, no pun intended, that this was going to happen. Now we're going to upgrade the nomenclature. But before that, as Tiki was referring, we thought we would not assume knowledge. And lot of what we're going to say is pretty dramatic. As we get to the end of this slide deck, your heads are going to be quite full. We thought we should start with the journey of what made these books possible because we don't, as Canadians, we don't tell our own stories. So, we want to tell you the story of how we got here. And and of course it begins on the campus of the University of Wateroo and this is me and Jerry Yang launching Yahoo. So this is 30 years ago and we started doing search engines and believe it or not that group of of machines that are there that's Canada's first ever internet data center. So let me repeat that again. The first ever internet data center was on the camp and the reason why it was on the campus of University of Wateroo back then Uyuunet was the only thing that had decent bandwidth and so we actually located on the campus because we could get decent bandwidth. Now what's different about the journey of openex is instead of waiting to be acquired by fill in the blank IBM Microsoft etc. Openex is one of those unique situations where we actually acquired all the software division of Dell. We acquired the entire software division of Hulip Packard and we acquired the entire business network of AT&T. So that that's that's sort of where the journey starts to become maybe little different. What that led to was global scale. So the story we're going to tell you about is story that's the private sector but from outside of Canada because the vast majority of what we do is outside of Canada. And you can see the the growth profile. So if if you're somebody in said you're very happy with this chart, right? Because it's it's rare for us to create global champions. Forget about national champions. Here's another interesting thing. Almost everything we're going to talk about is not from Canada. Okay, let me repeat that again. Almost everything we're going to talk about is not from Canada. 98% of all the activity that went into these books is actually from outside of Canada. And more than 50% is actually from outside of North America. So that that's another sort of head scratcher little bit. but we're still here in Canada. This is where we began. It's our origin and over 2,000 and many in the public sector of course at all our levels but also within all the critical infrastructure of Canada. So it's not like we start in water and we forgot about it. Of course not. We have thousands of people that work here but we have tens of thousands outside of Canada. And remarkably the company now does 15 trillion in internet commerce. So you know about five times our GDP. So this is very much story about the world and what the world is driving us to do whether it's running Nestle's entire global supply chain or General Motors etc. So that's what we do and that that informs what you're about to hear because we're we're telling you global story not Canadian story but hopefully with Canadian twist. and I'll save that for the last slide. so what we thought we would do is just walk you through the chapters that are in here to give you an idea. we get called and and this is all over the world. have been in offices where someone says want to use AI and the first thing we say to them you have to get off paper because an AI can't read the paper. So you have to become digital. know postcoid you'd be surprised but the reality is there lot of papers still out there you you cannot do this if you're not digital and of course in Canada we still are not digital and and we're lagard in this regard so but understand so's the rest of the world too like rest of the world has to become digital first now here's the interesting thing and this is hot topic on Wall Street right now over the last three weeks we've had $1 trillion change hands with not 1 trillion because Wall Street is trying to figure this slide out. And what this slide says on the left hand side, if you have enterprise content, which is what Techi was talking about, building search engines and what have you inside the firewall, the top arc is what we would always do. This is what you know as Microsoft, SAP, Oracle, all all these applications that work inside an organization. On the lower chart, you have companies like Anthropic, you have companies, say OpenAI, that kind of thing. They're starting to do everything that you could do on the top chart. The dilemma is not only are they replacing all that software, that's what Wall Street's been going all about for the last three, four weeks. They're also replacing us humans. And so, this is real dilemma. But from from the positioning of us in this book and the things that you may wish to learn today is to go do everything on that far right side, you want to get something done. You want to be efficient in your operation. Well, whether you're human or robot, you still need the data. So robots are not born as large language models with all this knowledge. They have to be trained. And that's why we need nuclear reactors and all that stuff because the amount of power that's required to train them. So where openex comes in is after three decades we have the largest amount of content in the world. So let me repeat that again. Little company from waterlue. We have largest amount of content in the world. And the reason why is because Google or Facebook or social media, that's less than 3% of the information. For long time, people don't realize Boeing had more information than the entire internet for about the first 10 years of the internet. And it's because when you were publishing technical manuals and every component in Boeing aircraft was different, that was an enormous amount of data. So that's why enterprise data has always been so far ahead. And then as the machines started talking to each other, machines today produce 100 times the amount of information today just during the day today than the humans do. And that that breakover point happened about 15 years ago. So the cognitive era begins. So chatbt takes the world by storm. And and the thing to realize is that all of its brain comes from somewhere. Well, it came from us. It came from the content that we wrote. Now, this is what was referring to. This usually surprises people, but in chapter 2 and chapter 3, we try and give you grounding in all this content, all this data. Where is it? Well, the reality is is that most of it is like an iceberg. It's actually behind the firewall. So, this has tremendous implications for anything you do and anything that society does. Most of the information is not inside chat GBT. It's not in Gemini. It's not include because they can't get behind the firewall. It's only when you give permission to go inside the firewall. Now, that leads to all kinds of discussions like sovereign cloud, sovereign data, and all that sort of thing. We're not going to try and solve that today here, but but understand that the majority of the data is actually not visible. And of course it's PII, it's health records, all the things that you know you don't want to be available. Now there are three types of content and this is where it starts to get very complicated because take Canada as country but you could equally take General Motors as an automotive manufacturer. You have information that's in the public. It's on your website. You have information that is proprietary. You don't want anyone to have it. And then you have information that you have to share. So if you're General Motors, you have tier one and tier two suppliers you have to share with them in what's called an extranet. For us, we have alliances, we have trade agreements. We share information with the Americans, with CEDA, with the Europeans, NATO, etc., etc. So we we have that sort of triple sources and uses of information. Now have to show this because I'd be remiss and there's whole chapter on this. There's thing called data lake. data lake can provide the content into chatgbt just like Google. It's all the public information that's in one big lake as you think. But everything we were just talking about, all the subtleties of sovereign cloud and things like that, those are like pipes in your house. And each pipe has valve. And the valve is permission. And so you have to have lots of pipes and lots of different valves because sometimes you're allowed to know something exists and sometimes you're not allowed. And sometimes you're allowed to know something exists and you can see it but you can't change it. And sometimes you're allowed and could go on and on and on. So all of that structure Openext created all that 30 years ago in Waterl. So that whole permissions framework that we use today, you would know it in security circles and things like that. Corporations do the same thing. We do individual permissions and group permissions. And trust me, when you get to Walmart and you have four and half million people, it gets very complicated. Who is allowed to see whose salary? That's complicated. And then of course within the service, we have all kinds of different levels we have to worry. And of course, that's where security matters. There's whole chapter on security. Now all of you, you respect security and you hate security as we all do. You hate two factor authentication, etc., and all that stuff. We have to do it. We have no choice. The trick though is how do we train these AI brains, but still get our jobs done. That that's the tricky part. We General Fraser and were with the Royal Canadian Air Force this morning. There was 200 vendors and the senior cadre of the RCF talking exactly about that. How do we get things done like Ukraine really quickly, but at the same time be secure? That is real headscratcher. And there's 200 people right now over at the Air Force Museum trying to figure that out right now. Now, what does that mean though for our country and also for the world? Well, we run 83 data centers globally because if you're running General Motors and you're running Nestle and what have you're all over the world running Canada, we could run it on five. We run 83 of them. But it's the thing that's circled there that you should see just to give you an idea about security. won't do guess for the audience. Some of you may know the scale of this, but since the Ukraine incursion, this has gone off the charts. We do 13 billion cyber attacks per day. Okay, that's what we have to worry about. 13 billion with How many How many times does the government of Canada get attacked day? yeah. No, no, no, no. It's commensurate. The public the public figure is between seven and billion times day. And after Ukraine, after what's going on in the Middle East, you can increase that number with with with lot of rapidity. Let's just say on can't say the name of the corporation, but there's major financial institution in Germany that on the day it actually started about 4 days before we knew something was up. but let's just say the spike in activity that occurred for FIS in Europe went off the charts and and still has been at very high level. So now we have to worry in our country about PIPA. the Europe's worry about GDPR. The Americans worry about USDR. Here's the thing. If you use this information to train AI, that AI has to follow the same governance rules as the data in the first place. Almost no one in the world understands that. have sat in offices in boardrooms to tell the CEO who went with huge amount of investment and time with his you know various general counsel and governance and what have you with his board to tell him oops that AI you just trained that has access to the world guess what it has personal information in it because you trained it with it and then you you you see you have to realize an AI that's trained on something through prompt engineering, you can get at it. So you you have to realize there's big thing here that data governance must follow AI governance. You can't separate them. The other issue that we all have is that once you educated an LLM, it cannot forget. You literally have to tear the LLM down. That that's something lot of people don't appreciate. There's lawsuit going on right now where the New York Times and and there's different vendors will take fair use. Creative Commons, if you're lawyer, you'll know all these things. There's big debate going on right now. And of course, the vendors are taking the position that well, we're like Airbnb and and and and what have you, and we're disruptors and we're just going to do it for the good of society. Whereas the legal world sits there and says maybe not so fast. This has moved so quickly. We have not had lot of court cases to decide what is the rights of an individual versus the rights. So there lot of debate here that extends right into AI is the point of this. Now this is where it gets interesting. Chapter 7 talks about what we propose. The only way to skin the cat of having things that are in an AI that are both meant to go outside as well as stay inside. You have to take hybrid approach. And that whole chapter talks about just as you would with data, how you create firewalls, you have to create firewalls with AI. So say you have something like coher. So government of Canada works with cohhere. Anthropic. We do lot of work with both of them all over the world. They can make container of an AI that you can control inside your organization. That's the only way you can really achieve hybrid because if an AI calls home, wherever home is, it just left the country, it left your organization, you don't have control of it. And if anybody tells you, we encrypt it for you. That's joke because almost all encryption that we have today will be decrypted. Just go on the internet and you'll see some people estimate two years from now, five years from now. Who cares? The point is don't think that because your data is encrypted. that's fine. It's not. So, it's something put as an example and we have it in the book. didn't call it Canadian passport. just said passport. But that's classic example of where we have to we have to live in three different spheres at the same time to issue someone passport. And then of course in the Canadian aspect didn't put this slide in the book because the book's really meant for the rest of the world. but we have all the stack to be able to do this. We're one of the few countries in the world outside of the two superpowers that actually has the ability to do this. don't have slide on this but was trying to explain to the air force officer general officer cadre Canada's superpower in software. Let me repeat that again because we don't say this to ourselves. Canada is superpower in software. Do you know in the Toronto to Waterlue corridor we have more tech employees than Silicon Valley. And and by the way, that's not this past year. That's been for almost six years now. We crossed over. Do you know when they're headhunting in the valley, they go to Toronto. You have to realize that that that environment, that ecosystem is bigger than anything in New York, in Austin, Texas, etc. Like it it's great crown jewel that we have. Now the the most important thing about agent AI is that it's productivity and I'm going to I'm going to talk about what's the difference between chatb super intelligence and genti in minute but genti is an agent it's something that can be co-pilot to human being or replace human being but it's making decision on one thing so in some ways it's brilliant and in the other ways it's really dumb because it can only do one thing we as humans generally we're we're in the middle of book two right now on the genome we think on average knowledge worker is actually five agents on average but I'll come back to that in minute so what's going to happen what are you going to end up doing as leaders what is going on in private sector right now not not in the future going on right now is we're going through org charts and we're replacing them with bots We're right now improving productivity and in some cases replacing things that you call workflow is now going to be known as an orchestration. Okay? And an orchestrator will be able to do workflows in ways that we as human beings that have to eat, drink, sleep, go home, visit with our family, get educated, etc. the org chart for bot organization which is 24 by7 that consumes electricity and excretes heat totally different world. So that brings us to genome and and that's the part that we wanted to talk about was if we could engage in and we challenged the Royal Canadian Air Force today. why wouldn't we leapfrog all the other countries? So think about that for minute. You know, as Canadians, we emulate the Americans. We're actually small enough that all of us can be in one room and have discussion just like the Air Force. But we're big enough that we can do global scale. That's rare thing for middle power. And yet we're able to do this. So imagine Canada as the first machine-driven country. Now you may want to say don't want to live in that country because I'm human being. don't want to be in country with bots. And the reality is society has to solve this. We have to solve this. And I'm not here as social engineer etc. But I'm trying to give you an idea. Technically, if we want to keep ahead and and at least keep our position from quality of life and standard of living, we better learn how to do this because can tell you and that's why did the slides at the beginning. I'm first person witness to everything going on in the world right now. They're starting to figure this out. You know, think of Latafia, Estonia. They're very small, but they're very digitally savvy. Okay. So why couldn't we build an agentic genome for Canada? Now took this all from the internet and the staff that are working on it. There's no proprietary information here. But we then had fun. We said, why don't we take our top 10 ministries and postulate how we would do agents to accelerate everything we do in the federal government. And there you go. I'll just very quickly but you can decompose Treasury Board and many of you have done your tours at TBS expenditure management framework agent, Treasury Board policy interpretation agent, program authority validation agent. These are all positions within TBS. lot of this is based on an algorithm that you all learned. But we can take all the data that's in GC docs and train an agent to do that. There's no there's no data in GC docs because nobody uses it. Well, you have to actually Well, okay. But but the reason why no one uses it, that's an interesting aside. Do you know the oldest piece of software used in Openext across the world and we're talking 1.2 billion users is GC Docs. Why it has not been upgraded, it's not for me to say. you're you're using something we designed 25 years ago, but it's critical for records management and for governance etc. But anyway, that's whole another story. Techie government of Ontario, there's no reason why provincial government which is heavy in education, healthcare, etc. It's the same thing. And there's no reason why we couldn't do map of all of Canada because remember we run the content of Air Canada, of Bell Canada, of McCain Foods. we there's no reason why we couldn't do this and you do the same thing. There's Bell's agentic genome. There's Royal Bank's agentic genome. We had this morning the RCAF and Boeing and Lockheed and MDA and Bombardier. And there's no reason why an agent that's sitting in sensor on fighter jet that has metal fatigue can't just talk to the agent at Boeing or whoever's doing the inservice support, right? Like that's the kind of unbelievable operational productivity leaps that you can make if you have the imagination to get your head around this. And these are all the training and the functions and where the content sources are. This is not science fiction. We're doing this right now with some of the largest corporations in the world inside their supply chain. just made it Canadian so you could relate to it. But understand, let me repeat this again. Major corporations that have millions of employees are doing this right now. So you think that Canada has productivity lag? Just wait. We don't do this. We better catch up. So, the management of EAI is where I'm going to hand over to General Fraser to talk to you. If your head's not spinning now, wait until he talks. He's going to talk to you about the reality of having robots in your organization. General Tom, thanks very much. can everyone hear me? So, why is an old general standing up and talking to you? well, it started up. We got we got to say words twice to an Air Force officer. This this started actually 15 years ago. Tom and from two different paradigms. came from your paradigm talking to private sector guy in the paradigm and we ended up coming to the same conclusions from two different paradigms and that's the book we talked about called the antisip organization. And so, you know, we started talking and now fast forward today. stand in front of you as hybrid leader. I'm not general. I'm not civilian. wake up most days, don't know who the hell am, but am who am. And you know, the the the function is that I'll never get away with will always be known as that. work for an FYI company today and and can't get away from my generalship. Okay? They still call me general or whatnot, but but it's, you know, we all talk about the same thing now, and it's about winning. And how do we win in an environment where there's whole bunch of things that are changing where we can't change that? It it is what it is. And that's what I'm going to talk to you about in couple of minutes here. So, this is swarm. And 10 years ago, this was something that for me, was thinking about, you know, the possibility, how do deal with swarm? four years ago, and month ago, Ukraine was invaded by Russia. Okay. And was talking at midnight to Lisa Laflam and four years later, I'm still talking to CTV, but we're on our fifth war since in that in that period of time. But we're still talking about this. And this is about swarm. And swarm now is is not theoretical thing. It's reality. This is now about machines talking to other machines in nanoseconds. And you and are not part of the conversation. And if you look at what's going on in in Russia and Ukraine, they're attacking each other and trying to overwhelm each other with cheap equipment. Cheap equipment going after multi-million or billion dollars pieces of equipment. And that's the new reality. And you know task force Rubicon where the Russians are doing. And what the other thing the Ukrainians have done with this the technology about swarm is is changing the entire supply chain. It is happening and changing so rapidly it's just the new reality. So what's the what of all that? Here are the four things that are actually have changed and are affecting us every day. work for an FI community right now, bank. most people in my regiment don't realize work for the bank because wrote three books since then. there are pictures in the book so they do know it was Dave Fraser. So that that's good thing. But here are the three four things that have happened. Time compression and that's what Tom and start talking about. used to have days and weeks to make decision. Now don't have any time to make decision. have to anticipate because the the decisions are happening so rapidly. Do we have any programmers in this room? The programmers are okay that's important though because used to talk to people now have to talk to programmers and the programmers who are writing the ones and zeros you have to do the same thing that do with talking to humans and you've got to make the machine doing the same thing that human does inside of Beimo where work. We actually have machines that we give names to because they are service providers. So when we go to meeting, there's machine there with us too because we're we're actually talking to that machine about because it's now operating at speeds and and complexity and with no mistakes than than human being does. That's the new reality. The next thing we talk about is how fast is this having speed of light. the scale is unlimited and it's now the suprahum and this is just the new reality. So we're now leading and the you know people and machines. But here's the bottom line up front. It's still all about people, okay? Programmers are still really important people. Now, they got to come out of the out of the darkness and actually talk to people and that's normally when they're starting to squirm or whatn not, but they're really important. So, I'm glad to see you out here. but here's the realities of what what those four things are doing. And this is this is this is old. You look on the left hand side, this was the trading floor. And on the right hand side, that's what happened in year based on technology. And AI is now working so fast. It is now going to fundamentally change engineering, lawyers, doctors. It's going to change it. And right now AI can actually take and is replacing it five for one. Five engineers for one bot. And it's just accelerating the impact on organizations off the scale. and this is just the reality that we're dealing with and that's something that we can talk about if you want. But it's not all lost, okay? It's not all, you know, you can control this. And here's, you know, when we wrote this book, Tom and were went, well, we just can't just say that's the the sky's falling in. What are we going to do? Here's how we can get yourself and your organization. How do you come up to speed with it? And here's just pathway of how to do it. So, in fact, you are managing your data. you are controlling the situation and you're getting the desired effects you want and you're and you are actually starting to anticipate as opposed to react. and how do you what how do you know you've got an anticipatory organization? Well, here are some simple things to take look at. Yes and no. And just want to comment on couple of them right now. Elastic Quick war story. You know, had an organization overseas, 20,000 people, and it was hierarchy. You had person at the top, CEO, me, and then all sorts of people. Well, one night we had an incident where something bad was happening. My communicator came over and it said 200 kilometers away, an American sergeant was in the fight for his life and collapsed the entire organization over radio. called him and said, "This is the boss. You are my number one priority. I'm going to get all this stuff done for you. I'm going to start stacking stuff up above you. We're going to save you tonight. We're And we collapsed the whole organization. That's elastic. And you know, he never met me before. I've never seen him since then. But we can take organizations like governments and or businesses and you can collapse them when you have crisis and then blow them back up. That's what we have to do in order to survive and and to to just prosper. So that's one of the things. And the other thing is it has to be iterative, you know, and that's the be that's the most important thing. But iterative means we have to trust your people. Okay? And used to go into an organization like this and would say you have my unqualified trust. in turn will earn your trust. And I've probably been the meanest person ever because who wants to disappoint the boss. when something happened, never had to say word. They showed up. They would be so upset that they disappointed the boss. And and that's just you have to trust your people and you have to give them the authority that they can know of and do things and how did we do this and how do we make an organization like that. We started to war game it. We started talking about scenarios and started empowering my people to say don't come back to me and asking me for the decisions. You make the decision based on what we understand of each other. So this is how you can start from where we are to go to where we have to be. And it has to be inclusive of of your of your machines. And with that, I'm going to turn it back over to Tom. See, he got the He's from the Army, so he knows he just went and sat down. So, he didn't have to be invited. can pull instructions. we could get going on the difference between the Air Force and the Army. so couple of things to just bring us home. There's something else and and and I'm going to go back to science in minute here just to give you an idea to how to think through all this AI stuff. But there's another reason why we want to pay attention to agentic AI because we may be able to build super intelligence from the agentic. Okay. Now right now the Americans have horse race of the hyperscalers. So Elon Musk and all the others are each one of them going off and doing their own Manhattan project to to build the super intelligence and and they're taking an approach which which ultimately will probably yield what they desire which is the superb brain but they will need nuclear reactors. They they they will need lot of heavy lifting. we may be able to create it in our country because we're small and we may have something that's an advantage. So let me unpack this slide for you. So this will be the most complicated slide. We're already almost done. So you know you're almost there. You're almost there. But want to unpack it because want you to see on the horizontal dimension it says parameters. So parameters are little pieces of information. Let's just say it like that. Okay. And on the vertical dimension, what do you want to do? Do you want to do single task? Do you want to discuss something? Or you actually want to solve wicked problem, something really hard, solve cancer, solve whatever. If you take that grid, I've circled red because that's what we're talking about. We're we're taking only small number. So you guys would have by now heard about large language models. What we've been talking about here are small language models. They're only small number of parameters because you're asking it to only do one thing. Even though it's brilliant, it's also really dumb. Like it only can do one thing. It doesn't have the intelligence of human. What you know what what sort of landed on everyone was chat GBT generative AI. That's halfway. You can talk to it and it needs about billion parameters. What the press is talking about is the top right solve anything frontier models super intelligence or AGI. There is debate among scientists. This is the what's being done right now with quantum computing brute force. Generally everyone agrees that is way to do it. But there is just like Jeff Hinton at uft and and and Nigel Shadabolt in at at Oxford, there is contrarian group that says, "Hey, maybe you don't need to go do these really big quantum based computers, but rather you do massive network of little agents." This is an open debate right now in the community. If we as country went after that genome thing, it gives us chance actually to build something quite special. So that chapter's on all of that. So you can read that that walks you through the possibility of it. And we are now right at science fiction. No one knows. So it's your turn. Go build your own agentic bot. Now we've we've given you the how-to. This is how you can do it. You have country that's blessed with the capacity to do it. The methodology of large language models was built at of at at the Air Force this morning. Yeah, brought them. We brought whole bunch of books for you. Not just that book, but we were over at the Air Force. So, we thought, okay, we'll bring some of the books over. So, we stole some books out of the museum. They're in the back. So, in here, here. got too many things in my hands here. But here is book that wrote with Mike Hood, our former commander of the Air Force. do you know in this book UFT and NRC did something amazing? They designed the guit. Okay, that was done in this country. We were the first ones to figure out how to do it. We have done amazing things before. We should know our history. So when sit and say to you, why don't we build an agentic genome? Why don't we build different way to do super intelligence? We've done this before. We can do it again. We just have to have the imagination. The other thing, and promised Tiki wouldn't do too much. You didn't come to bookstore today, but maybe we also wrote this for grade six science. So this is called Aviation Nation. And if you pick up copy, we integrated it with all the grade six science curriculum, lesson plans, podcasts all over the country so that 12-year-old would learn because that's the year they become an aircadet. So 12-year-old would learn. and so we've been running this now for two years. They are completely full at the AirCadets now. And then just for fun, we also brought an oldie but goldie. This is the for the centennial. got to do this with the governor general. That was lot of fun. But it was 150 of our greatest inventions. And we did the children's book as well. So all those books are at in the back. Please get them because when someone in your staff says, that's too big. The Americans should do it." Or fill in the blank. Somebody else should do it. No, we should do it. Why not? So here's my last slide. Why don't we do this? Why don't we do our own version of chat GBT? Now, I'm being, you know, somewhat entrepreneurial here. Why don't we just call it Maple? And why don't we get Open Text and Coher and CBC to build it? We have all the technology to do it. It's our content, so let's do it. Why would we wait for fill in the blank somebody else to do it? Why don't we do it? We could build our own chat GBT for our own country. So there's your innovation library that we brought and the educating that we're doing. And by the way, just to give you an idea about what tried to start at the beginning, these books are available in 10 languages because we have way more customers that speak, take your pick, Japanese, German, Arabic, like way more than Canada. There you go. All right. Thank you. So, we're going to go for about 10 15 minutes, the three of us. Then, we're going to say goodbye to our virtual audience, and we will continue here with questions for the audience, for those of you that made the trek in cold cold Ottawa, not as cold as yesterday. So, we're going to we're going to try to keep this in kind of governmental context for the people watching this. And I'm going to pick on word that each of you brought forward because it seems to me those are the two words that historically the government and governments across the world have used to either do things or not do things. And today that's flipped and the private sector uses these two words differently than governments do. So I'm going to start with the air force and the air force you the first one the first of the two words is speed. Okay we don't understand speed in government and don't just mean the government of Canada. don't just mean provinces. don't speed in the real world outside of government is as you said it's mentioned in it's measured in nanconds or in seconds or in minutes or maybe 10 minutes maybe an hour. How do we measure speed? We'll get back to you next week. We'll get back to you next month. The derivatives trading floor at Croup goes down. Anybody know how much they lose per minute? $10 million minute. Okay. Speed is real in the private sector. So, talk to us little bit about speed as you've seen it within the government and talk to us little bit and not just at the Air Force and at CF but also in terms of how you see how decisions are made, how procurements are done, how RFPs are drafted. talk to us little bit now about your experience in the private sector. Well, I'll give you my experience both in private and public sector. In the public sector, it's old, so bear with me. am old. we had something called whole government in Canada and the forcing function was called Afghanistan. It was probably the best time can say was ever Canadian. stood up. watched Ottawa lead the way because of forcing function and it was called the life of man and woman wearing uniform and this country came to the fight and gave me everything to the point where had to push it back. Okay? And we were able to take procurement system that is as convoluted and as clumpy and as can say words that only soldiers can say air force they don't understand these words but can say these words and we were able to get it done to the point where the rest of the world and to Tom's point went wow how did you guys do it and let me give you an example went down to Australia simple thing and was talking to the number two of the Australian defense forces and they Fraser, sit down. How the hell did you guys Canada do this? Because we wrote you guys off years ago. You've come on the world stage. You have done something no other nation has done in the world. We all talk about it, but you guys are doing it. got my whole staff down there and you go down there and tell my staff how Canada was able to actually break through the log jams and actually start delivering stuff on time in timely way because of the forcing function called war. We can do Can you define forcing function for us? It was time, speed, compression. Like when showed up in Afghanistan, we were driving around in wagons. When left there, we were driving around in something called lab that had gone from lab 3 to lab 4 to lab 5. We now have lab. It was happening as fast as what was going on in in Ukraine today. We can do this. So, I'll pause for second. We're good in crisis, think, is what you're saying. Keep going. what happens when we're not in crisis? Well, you can answer that question better than And in the private sector, well, here's the thing. In the private sector, the private sector is in crisis every day because they are ask yourself the this is the fundamental question. Who is responding to whom? used to ask my intelligence staff and and my operator staff in the private sector and the public sector because used to run manufacturing firms. now I'm with with BEMO and still ask in Beimo this question. If we're responding to our competition, we're losing. How do we get to the point where they are responding to us? And that is the fundamental question. It doesn't matter what paradigm you're in. And this is what Tom and came to. If you're responding, you're losing. So what are you going to do about it? No. And if you got to start breaking some walls and changing some authorities, you're compelled to do that. Otherwise, you become redundant and you disappear. and in the and public sector, we are planning geniuses. We don't execute very well. And in the private sector, they are executing geniuses and they don't plan very well. Okay? Like we're not perfect on either side of the paradigm. you know, little bit of don't let facts get in the way of good good idea or an opinion. That's my problem in the private sector right now. We're we're executing. We're running into the fire the the the sound of the guns and you get yourself killed. That's not smart. In in my former world is we didn't move fast enough until got into Afghanistan and almost ran out of ammunition one day. That's really bad day when have to call back home to my my boss and said, "Send ammunition." and they sent plane down to New Zealand to get it because we don't produce it here in this country. And when you need ammunition or you need part or widget, probably the same time that Canada needs it, everyone else in the world's using it at the same time. Okay, that's really bad situation. And both paradigms, we can do it. Here's the thing. It's about people. It's about leadership. It's about, you know, you know what's wrong, fix it. So that's speed. And think back to those of you that can because some of you are probably too young for this. Think back to before the internet. Think back to before Google. Government had monopoly, okay? On lot of things, including in lot of cases information, including on kind of whether or not you get unemployment insurance, whether or not you get the Canada the Canada Child Benefit, etc. That kind of monopoly on services, that kind of creates monopoly mindset, which is kind of like, yeah, yeah, yeah, you want same day service from department We'll get to you when we get to you. Okay? Monopolies are known for lot of things. They're not known for speed. Okay? And we have to break that mindset because speed, if you're slow today, you're toast. Okay. lot of deputies, your deputies, your bosses are actually now saying the big used to eat the small. Today, the fast eat the slow. Okay? And think about that in your jobs because when you say, "Yeah, we'll get that back to you next week or next month or in couple of days." The world isn't waiting for you. Okay? Everybody now works at different level of speed than the public sector works. So that's word number one, speed. Word number two is scale. You talked about Walmart moment ago during your presentation and think you mentioned four million employees if remember correctly. That's another interesting word in governmental context. In governmental context whenever we couldn't do anything again think back to before the internet. Think back to and again know it's very difficult for people to do that. We would always say, well, we can't we can't do that because unlike the private sector, we serve everybody. We have to serve 25 million Canadians. We have to serve 30 million Canadians. We don't just serve our customers. Okay? But now people serve millions and millions and millions and millions, if not billions of people all the time. And then we also would say, well, we can't do that because, you know, we're very slow and we can't because we have to do it in two official languages." How many languages does use? How many languages does Open Text use? So, the second one is scale. Talk to us little bit about scale because it seems to me that little kids now can serve with apps and things like that, they can serve 100 million people today. And that's more than twice the size of the Canadian population. Well, there's no question that SK almost anything we do in tech, we start with planetary scale. We have 1.3 billion users. 1.3 billion users. So we we do not have the luxury of subdividing that or piloting something. We have to go live. that that's why there's so many cyber incursions. languages 30 think there's at least 30. we'll do 10 generally in marketing for our major areas of of you know marketplaces but yeah no scale you have to be planetary or you will not survive period. There are no borders in the digital world and this is going to be big challenge for us when we think about sovereign and what have you and we think about creating things you you know think of the structures that we've built over the years to retain our Canadian identity CRTC that kind of thing in this world of the internet good luck right it's there there are virtually no borders so speed and scale have fundamentally changed in the real world. don't think they fundamentally changed in the public sector. And again, this isn't in of the government of Canada. This is almost all all public sector entities. We have not adapted yet to the speed and scale of the new world. Then the last thing want to talk about before we let our virtual audience go, talked little bit about agents, talked little bit about organizational structures. think lot of people now are kind of going, am going to lose my job? am what's going to happen to me? What's going to happen to my kids?" And that's very natural because there are very very few things that should kind of make you go then kind of your livelihood. You talked about major general you talked about at the end of the day it's still going to be about people. So reconcile those two things for us those two statements. private sector example and it was company that did highly skilled workforce that did machining of very high tolerances and they brought in robots and the the workforce were absolutely against it. We're going to lose all our jobs to the robot. They didn't lose one person because they had to actually program the machines and then supervise the robots to do what they had to do. They expanded the capacity of the company, but they took the people and they gave them high and gave them higher level of education and training so they could actually do what they needed to do. And in our first book, we talk about the agrarian revolution, the industrial revolution. And every time we've done it, we've allowed the humans to do something different. in in early on it was to do things less dangerous and allow us to use our brains in more creative ways. Well, we're now at stage where we're not invited to the party because it's machine to machine. But who's writing the code? Who's supervising those? Because right now, if look at at all this, you know, technology and whatnot, it's who's got kids in the room. Okay? got got two grownup boys. Okay? When they were three, they needed maximum dad supervision. My kids are 37 now. They still need maximum dad supervision. All right, they are always going to need dad supervision. All right, the only thing now is that when they call me, it's lot more expensive than when they were young. Okay, we still need people to supervise the machines. Okay, they do not operate by themselves. They have incomplete judgment. Look at Elon Musk and what he's doing. mean, he's done amazing things, but he still has to have engineers and still has to have people to kind of test it, supervise it, and when things go wrong, who's going to fix it? So, there there is this need for us. So, there's huge point here that all of you and the service must remember that to to use Dave's analogy, you have to stop thinking about human in the loop, but human on the loop. Okay? and and our book talks about that little bit and we talked about the air force today. But there's something more profound that all of you need to realize if you wish to govern something. So say this is the country of Canada or you want to govern city or you want to govern corporation or the natural resource sector or the transportation sector. Whatever you want to govern, if you can't speak the language, you can't govern. If the service itself is not literate in this, they will not listen to you and they will either go elsewhere or they'll ignore you. If the service wants to govern, it must be at the cutting edge because if you're not, you're the slow. So, what was trying to interject earlier, and I'll preface this by saying my wife sent me an Instagram this morning, and it was mother talking to her daughter, trying to explain about Robert Redford dying. And she said to her daughter, "Well, Robert Redford was my mother's Brad Pitt." And the daughter said, "Who's Brad Pitt?" Okay. So, so had to preface it this way because Richard Dernney is someone who taught me so much about governing and you know what would sit dinner with Richard and I'd talk about policy thing we're working on and and would say but Richard we we're not working on this. We're not advancing this. And he said it's okay when the risk of not doing something becomes greater than the risk of or we will do something. The service is now at that point. Risk not doing something is more risky. The service must do because if it doesn't, the alternative is you made decision, you decided to do nothing. That's way more risky. Exactly. So, I'm gonna ask you each one more question, but the way would summarize this part of the conversation and the way summarize to lot of people is humans who use AI will replace humans who don't use AI 100%. And that if you internalize that, yeah, you have learned lot. Humans that use AI will replace humans that don't use AI. Now, one last thing because we're talking about it lot today. We've been talking about it here. Sorry, not today, but we talk about it in Canada constantly. Now, we never did except at the school. We've talked about it for many, many years. Sovereignty, Canadian, being kind of master of your own domain, so to speak. you each work at great Canadian entities. Tell us why it's important that those are Canadian companies. And I'm going to start with you. What does that mean to us in the room? What does that mean to Canada? The is headquartered here. The is management team is here. next to your health, your financial well-being is probably the next most important thing. And the from governor's point of view, from protection point of view, from privacy point of view, we're Canadians. It's got to be kept in Canada. We do not we do not outsource that and make you digital citizen of another country or digital customer of another cu country it's about being Canadian and working for BEIMO we take that seriously and we will do everything we can to make sure that those systems and whatnot and there's an awful lot of compliance that we have to do govern compliance what not but but it's about the customer and protecting the customers privacy and your financial well-being so that you can actually do what you need to do. and deal with it every day. I've got segment inside of email of million market share that I'm responsible for. And that's what we talk about every day to make sure we get it done right. And it but it's hybrid approach. There's some stuff going back to what Tom said, it's public, but there's lot of stuff that's about you. It's private. But want to push you just little bit. when do my banking, I'm doing debits and credits. Why is it important that that company is Canadian rather than that company whether I'm getting my debits and my credits from company in Europe? think it goes back to trust. Do you trust the the organization you're dealing with to take care of you that you don't go there one day and there's nothing there in the account. It's about the trust and and do you have mechanism to go back to your government that can actually go back to that that company that Canadian company that can regulate it and actually take care of yourself because you're one person of 35 million. and so look at that as trust factor, as credibility factor that don't have to worry about it at night when go to sleep or my children or my wife. don't have to worry about it. So Tom, why is it important that Open Text is Canadian? You told us that almost all your customers are non-Canadian. Openext would not exist today if it wasn't Canadian. And let me explain why. Trust. He just said it. do you know that? And by the way just on sovereign cloud and all that sort of complexity the monk school has been doing work on this and think you will see white paper come out from Janice Stein and her crew. It it's complex topic. So so just as as thing to watch pop up in in the next few weeks trust. Do you know and said this publicly this morning to the Royal Canadian Air Force. Do you know Open Text runs the content for 40 40 militaries? 40. We're middle power. Know your history of Canada because didn't appreciate this because was surprised. 40 different countries defense departments. That's your core, right? They would rather have Canadian have the keys to the castle. We are in many ways reliving our past history. In those books that are at the back here, ingenious etc. Do you know after World War II, Canada ran all the currency? The Canadian Mint across the street printed the money. This is an era of counterfeits and all that stuff. Canadian Mint printed all the money. Canada Post taught everyone how to run post office. Bell Canada had Bell International set up and ran tele telephone exchanges. Th this country has had this role before and in the world we're moving into with superpower competition, this company has tre this country has tremendous role to play as middle power. But we have to grasp it and understand why. But we cannot play that role if we are not at the very cutting edge. If we are not the best and that starts with the service all the way down, we have to be the best if we want to play that role. But that's hard because that means for all of us, we have to demand much more of each other. can tell you today at the RCF, you have whole bunch of uniformed officers that are talking to vendors and and do you know who wasn't in the room? You. You know who they talked about? You. So we have to re realize all of you are part of you and and it's important that we seize the moment because war is terrible word to say but let's say we are in new competitive paradigm. You know, maybe that's nicer way to say it. Nice use of it. But the reality is it's all about this is real world problem now and we have to rise to the okay, we've done it before, but this is right now you are the generation that has to do it, not somebody else. It's your generation. Last word to you, Mr. General. talked about forcing functions and you know we you know in Afghanistan while the the decade we were there we had forcing function protect men and women and and do the right thing for nation that was at risk. this is not peace anymore that there's new forcing function and see it everywhere go traveling internationally whatnot. And going back to Tom's point lot of people are coming back to Canada. They're coming back to Canada and they're saying, "You don't have baggage that lot of nations do. we need you to tell us and to share with us how can we do things and we have value prop that we probably don't quite understand as nation of just how important our value prop of that Canadian flag, what it means today and the opportunities that are now being presented to us. But there's forcing function behind it. It's very complex, you know, Tom talked about out there. There's whole bunch of factors coming at us right now. It's tsunami wave. It's you don't have choice. All right. We got to become the leading edge to do what is right for our nation. But at the same time, it's opening up an awful lot of opportunities internationally for this nation. Like cannot believe the number of people talking to us now. Please join me in thanking Major General David Frasier and Mr. Tom Jenkins.