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.

Listen and subscribe to Strategic Alternatives on Apple, Spotify, or wherever you get your podcasts. If you'd like to learn more or continue the conversation, please visit rbccm.com/strategicalternatives, or contact your RBC representative.

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.

In a 40-year career, Francesco Starace has become one of the leading figures in the energy transition – first as CEO at Enel Group, and now as a Partner at specialist investment EQT Group. In a keynote session at RBC Capital Markets’ Energy Transition Conference, Starace shared his views on the progress of the transition, the global challenge posed by soaring electricity demand, and the potential contribution of his first specialism, nuclear.

Payments companies were among the first to experience the pressures that hit the fintech scene and the broader software industry over the past couple of years. Now activity is reviving, with several big deals. What’s changed, and which other parts of the sector stand to thrive amid ongoing disruption? Jason Gurandiano, Head of U.S. Technology Banking and Global Head of Fintech Banking, is joined by colleagues Matt Thomas and Asif Ahsan for the second part of their analysis.

Key points

• Payments companies are trading at a discount relative to cashflow and are likely to see strong M&A activity.
• Agentic commerce and stablecoin are potential game-changers in payments.
• Strategics are targeting companies with a hardware component alongside proprietary data as moats against AI.
• Digital assets and trading platforms are among the subverticals with strongly favorable signals.

Chapter markers:

Introductions [00:06]

• Joe Coletti introduces the second part of a discussion led by Jason Gurandiano, Head of U.S. Technology Banking and Global Head of Fintech Banking, with Matt Thomas, Managing Director in Technology Investment Banking, and Asif Ahsan, Managing Director in Technology M&A.

Payments strength [00:46]

• Activity in the payments sector has picked up meaningfully in the past three months. The space has become more global and less fragmented, as companies seek to own whole steps of the value chain. Many payments companies are trading at a discount and this is an area of likely continuing M&A activity.

Impact of agentic commerce and stablecoin [04:34]

• Agentic commerce is set to transform payments, and will drive transactions to ensure security against fraud. Stablecoin is becoming institutionalized and could prove disruptive to traditional banking when paired with consumers’ digital wallets.

Information services outlook [08:13]

• Information services companies’ success rests on whether their data is truly proprietary or can be easily replicated. A combination of proprietary data and hardware is increasingly valued by companies looking to do M&A.

Subvertical verdicts [10:17]

• Summing up their views, participants are broadly bullish about payments and financial software. Views on market structure, information services, and disruptive financial services are mixed, with some players facing greater risks. Signs are good for digital assets, crypto, and tokenization, with strong innovation and maturing players.

Amid the SaaSpocalypse panic, fintech companies remain relatively resilient, protected by the specialized and highly-regulated nature of the financial market. But investors are looking for strong retention and growth, including AI-driven revenues. Jason Gurandiano, Head of U.S. Technology Banking and Global Head of Fintech Banking, is joined by colleagues Matt Thomas and Asif Ahsan to analyze what will set the winners apart from the competition.

Key Points

• Public and private markets in fintech remain robust.
• While affected by AI disruption, the sector has been more resilient than the broader software market.
• Investors are looking for high retention and growth, including AI-driven revenues.
• Wealthtech and Insurtech are attracting most interest and are set to see strong M&A.

Opening and introductions [00:06]

• Jason Gurandiano, Head of U.S. Technology Banking and Global Head of Fintech Banking, summarizes RBC’s 11th annual fintech conference. It attracted the biggest engagement of the past five years: 430 delegates and 740 investor interactions. He introduces Matt Thomas, Managing Director in Technology Investment Banking, and Asif Ahsan, Managing Director in M&A.

Hunt for investments [02:15]

• Fintech innovation is accelerating. Private investors are actively seeking new investments; public investors are striving to understand the impact of AI on current investments. The winners will be companies demonstrating high gross retention as well as growth that is at least partly driven by AI features.

Fintech’s resilience [7:37]

• The specialized and highly-regulated nature of finance is providing fintech with some protection from the disruption affecting software more broadly. But there is a bifurcation, with successful companies achieving robust trading multiples and perceived losers trading near cyclical lows.

Embedding offers insulation [9:10]

• Fintechs that are strongly embedded with their end customers have most protection, and have the opportunity to go on the offense with new products.

Areas of opportunity [11:36]

• Wealthtech and Insurtech are attracting most interest: M&A is likely to remain strong in these subverticals over the next 12 to 18 months. Capital markets software has strong interest, but incumbents face threats from customers with their own AI budgets.

AI infrastructure investment, M&A activity and evolving treasury demands are reshaping how companies access capital and manage liquidity. Vito Sperduto, Head, RBC Capital Markets U.S., Raja Khanna, Head of U.S. Corporate Banking, and Kartik Kaushik, Head of U.S. Cash Management, discuss what's driving capital deployment, how financing strategies are evolving and why treasury is becoming an increasingly strategic function.

Key points:

• Corporate borrowers continue to navigate elevated rates, growing lender competition and an evolving private credit landscape.
• AI infrastructure investment and M&A activity are driving demand for financing and reshaping capital structure decisions.
• Treasury is moving from a cost-centre view to becoming an increasingly important part of strategic planning, capital allocation and transaction readiness.
• As companies manage cash across multiple markets and currencies, visibility, transparency and control remain key priorities.
• For borrowers, flexibility in capital structure and financing options remains a priority, while treasury teams continue to focus on liquidity visibility and working capital control.

Listen and subscribe to Strategic Alternatives on Apple Podcasts, Spotify or wherever you get your podcasts. To learn more about corporate banking, treasury management, liquidity solutions or capital markets strategy, please contact your RBC Capital Markets representative or visit rbccm.com.

China’s electric vehicle leadership is reshaping the global audio industry. In this episode, host Joe Coletti speaks with Tom Narayan, Lead Equity Analyst in Global Autos at RBC Capital Markets, to explore how China built its EV advantage, why its OEMs are expanding into Europe and eyeing the U.S., and what this means for Western automakers, suppliers, and consumers.

Key points:

• China’s EV advantage is rooted in battery supply chains, subsidies, labor costs and domestic market scale.
• Chinese OEMs are expanding beyond their home market through exports and localization in Europe.
• European OEMs may lose share, but Western suppliers could benefit if Chinese OEMs rely on them abroad.
• Chinese OEMs are technically ready for the U.S. market, but policy volatility and tariffs remain major barriers.
• Chinese consumers are shaping the next phase of electric vehicle technology through demand for autonomy and tech-forward features.

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To learn more about RBC Imagine, access the flagship report, or continue the conversation, contact your RBC representative or visit rbccm.com/imagine.