Strategic Alternatives

Recorded at the Milken Institute’s Canada Dialogue, this episode explores Canada’s growing role in the global AI ecosystem. Host Joe Coletti introduces a conversation featuring Cohere co‑founder Aidan Gomez, Canada’s Minister of AI Evan Solomon, and RBC CEO Dave McKay. Together, they examine the challenges of AI regulation and safety, the competitive dynamics shaping frontier models, and Canada’s opportunity to build a sovereign, democratic alternative in a rapidly evolving global market.
This episode was originally published on Disruptors, an RBC podcast, on September 16, 2026. For more information, visit Disruptors podcast.
Key points:
Canada’s foundational role in AI: Canada’s early investment in deep learning and its homegrown talent base underpin its leadership in frontier model development.
Regulation and competition: Oversight is essential, but regulation must avoid entrenching incumbents or limiting innovation from emerging players.
Sovereign access to frontier models: Unequal access to advanced AI tools creates cyber‑security risks and highlights the need for national capability outside the U.S.
Acceleration of product development: AI is compressing development cycles from years to months, reshaping how companies build and deploy new products.
Workforce transformation: AI will change jobs more than eliminate them, requiring flexibility, reskilling, and new social guardrails.
A democratic “second rail”: As global buyers diversify away from single‑country dependence, Canada and France represent the leading democratic alternatives for frontier AI.
Canada’s moment: With talent, capital, compute, and natural resources, Canada has the ingredients to build a global AI champion — but must act quickly.

Introduction [00:05] Joe introduces the episode and Canada’s rising importance in the global AI landscape.
Regulation, oversight & competition [00:51] Aidan Gomez outlines the need for independent testing and warns against regulation that entrenches dominant players.
Guardrails and sovereign capability [01:39] Dave McKay discusses AI safety, cyber risks, and unequal access to frontier tools.
Canada’s AI strategy & frontier model leadership [03:23] Minister Evan Solomon explains Canada’s “AI for All” framework and the strategic importance of Cohere.
Acceleration and workforce impact [04:27] Dave describes how AI is compressing product development cycles and reshaping job roles.
Build right vs. build wrong [08:25] Evan Solomon emphasizes the need for responsible development to maintain social license and public trust.
Canada’s AI heritage and global influence [09:48] Aidan reflects on Canada’s deep learning origins and the global impact of Canadian AI founders.
The democratic second rail [11:20] Why Canada and France represent critical alternatives to U.S. and Chinese AI dominance.
Final thoughts from Aidan, Dave & Evan [12:37] Each leader shares their perspective on Canada’s opportunity to lead in AI.

Despite rate volatility and macro uncertainty, muni issuance is on pace for one of its strongest years in decades. Host Bob Spangler, Head of U.S. Municipal Finance, sits down with Keith Solomon, Head of Municipal Products, to break down the forces shaping today’s municipal market. They explore why demand remains resilient, which sectors are driving activity, and how issuers and investors are adapting to a rapidly evolving environment.

Key Points
Muni issuance is on track for one of its strongest years, approaching $600 billion despite rate volatility and macro uncertainty.
Long‑term infrastructure needs are driving resilient new‑money issuance, with state and local governments continuing to fund essential services.
Sector activity is broad‑based, led by housing, public power, healthcare, and energy‑efficiency projects responding to affordability and capacity pressures.
Market technicals have shifted, with recent Treasury moves and lighter reinvestment cash creating muni underperformance — but also more attractive yields.
Issuers and investors are becoming more sophisticated, embracing blended structures, bespoke deals, and private‑capital solutions.
RBC continues to expand its leadership across key muni sectors, supported by strong local presence, national expertise, and increased balance‑sheet commitment.

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Software sentiment has shifted significantly as investors reassess the impact of AI across the sector. In this episode, Matt Hedberg and Rishi Jaluria discuss opportunities emerging across cybersecurity, data and infrastructure, the evolution of software business models, and where value may accrue across the software stack. They also explore cyber resilience and the economics of buy-versus-build decisions.

Key Points
Software sentiment has improved as investors increasingly view AI as an opportunity to expand software capabilities rather than displace software altogether.
Companies with strong track records of innovation may be best positioned to benefit as AI reshapes competitive dynamics across software.
Rising AI-related security incidents are reinforcing the need for cyber resilience and security modernization.
Software moats remain intact, while outcome-based pricing is emerging as an important area of business model evolution.
DIY software strategies do not always reduce costs once maintenance, security and opportunity costs are taken into account.

How has software sentiment evolved this year? [00:55]
Matt Hedberg discusses the recovery in software sentiment, changing investor perceptions of AI, and the debate around the future of traditional SaaS applications.
What determines AI winners and losers? [04:58]
Rishi Jaluria explores why innovation remains the most important moat, the role of M&A as outsourced R&D, and how software business models may evolve.
What are the cybersecurity implications of recent AI incidents? [07:25]
The discussion examines rising AI-driven cyber threats, increasing demand for security modernization, and the implications for cybersecurity vendors.
What stood out from the software and AI bus tour? [09:55]
Insights from meetings with software companies, investors and private companies, including software moats, incumbent advantages, outcome-based pricing and the limits of vibe coding.
What does the DIY framework suggest about buy versus build? [12:36]
Matt Hedberg and Rishi Jaluria discuss the hidden costs of internally developed software and the trade-offs organizations face when evaluating DIY approaches.
Listen and subscribe to Strategic Alternatives on Apple, Spotify or wherever you get your podcasts. To learn more about software and AI trends and RBC Imagine research, contact your RBC Capital Markets representative or visit rbccm.com/strategicalternatives.

The UK is acknowledged as a renewables leader. Heavy transmission investment will help it enhance energy security alongside clean power. But when it comes to the third point of the energy trilemma, affordability, there’s a problem: the country’s electricity demand is just too low. Chris Stark, the UK government’s Head of Mission Control for Clean Power 2030, sets out its strategy in conversation at RBC Capital Markets’ Energy Transition Conference.
What is the Clean Power 2030 mission? [00:51]

Chris Stark discusses his background as CEO of the Climate Change Committee, his appointment when Labour won the 2024 election, and the goal of reaching a mostly clean power system by 2030 through investment in clean generation, grids and storage.
How does electrification transform the energy system? [02:27]

Chris explains how doubling the power system will halve overall energy use through the efficiency of electric vehicles and heat pumps, while greater domestic generation boosts energy security.
What is the biggest grid build since the 1960s? [03:58]

The discussion covers the largest transmission build in decades, turning the grid inside out from coal to wind, and the government consenting clean energy projects faster than any previous administration.
How is the government reforming grid connections? [04:56]

Chris details the extension of Contracts for Difference from 15 to 20 years and the radical reordering of the connections queue to prioritize strategically aligned and commercially ready projects.
Can the energy trilemma be solved? [05:44]

The conversation examines the tension between capital investment, delivery speed and consumer costs, the legacy of levies on electricity bills, and the challenge of moving policy costs onto the exchequer.
How can EVs lower electricity bills? [07:20]

Chris outlines how scaling EVs from 3 million to 30 million vehicles, alongside heat pumps, could cut the unit cost of electricity by up to 25% by spreading fixed costs over greater demand.
What role do data centres and flexibility play? [08:19]

The discussion explores smart demand from data centres located where spare electrons would otherwise be constrained off, the benefits of a flexible power system, and targeted rebates for heavy industry.
What about CCS and hydrogen? [09:49]

Chris addresses the remaining 20–30% of decarbonization that electrification cannot reach, the UK’s advantage in CCS through depleted oil and gas wells, and the reality check on costs for carbon capture and hydrogen projects.
What's the risk to investors from political change? [10:53]

Chris explains why he does not expect a change of agenda with a new Prime Minister, how fixed-revenue contracts with an independent counterparty protect investors, and why the cost of finance will determine the future cost of energy.
Listen and subscribe to Strategic Alternatives on Apple, Spotify or wherever you get your podcasts. To learn more about the UK energy transition and RBC Capital Markets research, contact your RBC Capital Markets representative or visit rbccm.com/strategicalternatives.

Consumer staples companies face mounting pressure from changing consumer behavior, a widening K-shaped economy and the growing influence of digital platforms. Nik Modi discusses the key themes from The Great Recalibration: Consumer Staples Edition and the actions boards and management teams should consider for the future.
Key Points
Long-standing valuation pressure and a more volatile operating environment are forcing consumer staples companies to rethink traditional approaches to growth and value creation.
Income bifurcation is reshaping demand patterns, with growth increasingly concentrated at the high and low ends of the market.
Simplifying choice and aligning products with consumer occasions could help brands address rising decision fatigue.
Digital platforms are becoming powerful demand-creation ecosystems where cultural relevance can be as important as brand scale.
Companies should focus on capabilities, resilience and organizational structures that help them compete effectively in a different future landscape.

Introduction [00:05]
Joe Coletti introduces the episode and welcomes Nik Modi, Global Co-Head of Consumer Research at RBC Capital Markets, to discuss the findings of The Great Recalibration: Consumer Staples Edition.

Why Consumer Staples Is at a Pivotal Moment [01:47]
Declining valuation premiums, persistent earnings pressure and a more volatile operating environment are forcing companies to rethink traditional approaches to growth, investment and value creation.

Adapting to a K-Shaped Economy [06:53]
As spending becomes increasingly concentrated at the high and low ends of the market, brands may need to rethink portfolio architecture, consumer targeting and growth strategies.

Decision Fatigue and the Paradox of Choice [09:02]
Growing choice overload is changing consumer behaviour, creating opportunities for brands and retailers to simplify decision-making through assortment and merchandising strategies.

The Eighth Continent and Cultural Relevance [12:06]
Digital platforms are reshaping demand creation and influencing brand success, making cultural relevance, platform-native strategies and creator partnerships increasingly important.

Building Capabilities for a Different Future Landscape [15:01]
Nik outlines five priorities for boards and management teams, including capability building, organizational redesign, resilience and treating digital as core business infrastructure.