Technology Perspectives Outlook 2026

What does 2026 hold for Canada’s technology sector?

AI, digital infrastructure and tech buildouts continue to dominate not only the tech sector but the economy as a whole. Our Technology Perspectives Outlook examines what impact these have on Canadian businesses at both a macro and an operational level.

Drawing on insight from our Technology Group, this year’s Outlook provides a grounded, practical analysis of the trends organizations need to understand as they optimize products, streamline operations, and manage risk in an increasingly complex environment.

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Technology Perspectives Outlook 2026

Discover actionable legal insights, regulatory foresight, and strategic considerations to help you mitigate risk, seize opportunity, and plan for growth in 2026 and beyond.

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A Preview of the Topics We Explore

Our Technology Perspectives Outlook 2026 chapters include:

Venture Market Update

Where is Canada’s venture market heading in 2026?

Canada’s venture market is set for another year of high selectivity, with capital concentrating in sectors that show resilience and policy momentum. AI is expected to remain the strongest magnet for investment, while defence and security technologies are poised for rapid expansion due to major federal spending. Cleantech will see a more cautious outlook, and fundraising conditions will continue to reflect limited new dry powder and a reliance on follow‑ons, secondaries, and mergers and acquisitions. Understanding where investors are focusing next and how liquidity is evolving can help companies and funds position themselves strategically for 2026.

Corporate Venture Capital and Strategic Investments in High Growth Tech Companies

What’s driving Canadian corporates to invest directly in startups and what risks come with it?

Corporates are increasingly using Corporate Venture Capital to access emerging technologies, accelerate innovation, and build merger and acquisition pipelines (typically as minority investors alongside traditional venture capital funds). The upside can be significant, but organizations must also navigate the risks around limited control, sensitive information exposure, and potential reputational fallout. These are best managed through clear competitor definitions, tailored information‑rights frameworks, and carefully drafted side letters. Knowing how Corporate Venture Capital and fund-led Venture Capital differ and the advantages each offers will help you align your investment structures with long-term goals.

Digital Infrastructure Investment in Canada

Where is Canada’s digital infrastructure market heading in 2026?

Canada’s digital infrastructure sector — from data centres to fibre and wireless networks — is seeing strong investment momentum driven by AI demand, cloud growth, and major government initiatives. Federal and provincial programs supporting broadband expansion, AI infrastructure, and energy capacity are accelerating development, while telecom companies’ divestitures are opening new opportunities for investors. Understanding how AI, energy demands, and public‑sector funding are reshaping digital infrastructure will help you anticipate where the biggest opportunities lie.

Open Banking in Canada: The Journey, the Present, and the Emerging Road Ahead

How will open banking reshape financial data sharing in Canada?

Canada is moving toward a legislated open banking framework that will replace screen scraping with secure, regulated data access. The proposed Consumer‑Driven Banking Act introduces standardized rules for consent, liability, and accreditation, with Phase 1 enabling read‑only access and Phase 2 set to expand into payments and account switching once Real‑Time Rail is in place. Open banking promises more competition and innovation — but also new compliance, cybersecurity, and operational demands.

Canada’s Stablecoin Act: A Bold Step Forward

What does the Stablecoin Act mean for issuers and platforms in Canada?

Canada’s Stablecoin Act creates a Bank of Canada–run registration regime for stablecoin issuers, requiring full reserve backing, redemption at par, governance and risk‑management policies, incident reporting, audited disclosures, and a ban on paying interest or yield to coin holders. It also ties directly into several other regimes: anti‑money laundering and anti‑terrorist financing rules requiring Money Services Business registration under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act; amendments to the Retail Payment Activities Act enabling stablecoins as permitted payment instruments; structuring considerations for federally regulated financial institutions; and ongoing provincial securities law uncertainty. Clear, prudential standards can unlock compliant product design and institutional adoption — but success hinges on operational readiness across reserves, disclosures, and cross‑regime compliance.

Navigating Canada’s Evolving Payments Regulatory Landscape

How will Canada’s payments rules shape your 2026 roadmap?

With the Retail Payment Activities Act obligations now in force, Real‑Time Rail moving toward broad adoption, and Budget 2025 introducing both the Stablecoin Act and phase‑two Consumer‑Driven Banking Act reforms (write‑access targeted for 2027), payment service providers and FinTechs face increasingly layered requirements. Oversight from the Bank of Canada and the Financial Transactions and Reports Analysis Centre of Canada is expanding — and registration, compliance, and participation pathways now involve multiple regimes with overlapping expectations. Sequencing registrations, building robust compliance programs, and designing products for real‑time, data‑rich rails will keep you competitive and ready for enforcement as Canada’s payments ecosystem matures.

Hot Topics in Privacy and Cybersecurity

What privacy and cybersecurity updates should Canadian organizations prioritize in 2026?

Canada is heading into 2026 with heightened expectations from regulators, expanding enforcement powers, and major reforms underway. Recent findings and court decisions have sharpened standards around age assurance, consent, privacy‑by‑default, online reputation, biometric data, and mass scraping. At the same time, Bill C‑8 proposes sweeping cybersecurity obligations — from mandated programs and audits to sector‑wide reporting and significant penalties. Together, these developments signal more rigorous oversight and the need for stronger internal controls. Upgrading consent flows, default settings, vendor risk management, breach readiness, and governance now will help you meet evolving Canadian standards.

Trends in AI Litigation: Lessons for 2026

What AI disputes are Canadian companies most likely to face in 2026?

As AI adoption accelerates, litigation is no longer theoretical — and regulators are moving toward a new national framework following renewed federal consultations. Courts are already testing early claim types, from copyright class actions challenging model training to disputes involving misrepresentation, reputation and personality rights, product liability, and algorithmic pricing. These cases signal where legal risk is likely to concentrate next. Preparing for these emerging claims and strengthening governance, documentation, and controls around data, disclosures, and automated decisions, helps reduce exposure as AI law continues to evolve.

Getting “IT” Right the First Time: How Early Decisions Determine the Success of Technology Projects

What are the most common reasons tech projects fail?

Most technology projects falter due to unclear requirements, unrealistic schedules, and poor resource planning. Early decisions about objectives, timelines, roles, and governance are critical to setting projects up for success. Understanding how early clarity, structure, and governance shape the trajectory of a technology project helps you make informed decisions up front — reducing risk, preventing costly misalignment, and creating the conditions for stable delivery.

About Our Technology Group

McCarthy Tétrault’s Technology practice is the largest and deepest in any Canadian law firm. Operating at the intersection of the legal, business and technology sectors, our team of skilled advisors help clients establish and maintain their competitive advantage. Amongst Canadian law firms, we’ve advised on the widest range of leading-edge technology transactions across industry sectors: software, hardware, e-commerce, fintech, aeronautics, biotechnology, life sciences, IT services, data management and security. Our internationally-recognized team acts for domestic and international clients including large and small technology developers, manufacturers and vendors to the major corporations, financial institutions and private/public partnerships that use and distribute technology or purchase enterprise-wide licensing agreements and mission-critical systems. Find out how our team can help you.

About McCarthy Tétrault

McCarthy Tétrault LLP provides a broad range of legal services, providing strategic and industry-focused advice and solutions for Canadian and international interests. The Firm has a substantial presence in all of Canada’s major commercial centres as well as in New York and London.

Built on an integrated approach to the practice of law and delivery of innovative client services, the Firm brings its legal talent, industry insight and practice experience to help clients achieve the results that are important to them.

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For further information on McCarthy Tétrault or any of the above, please contact media@mccarthy.ca