Canada is probably never going to beat the US on salaries, market size, or number of high-paying jobs.
So instead of trying to compete on the US's terms, Canada should compete by offering something the US does not: freedom from having to organize your entire life around employment.
Canada should introduce a modest UBI and gradually increase it as AI, automation, and productivity make it more affordable.
This could help with brain drain. A highly skilled Canadian might be more willing to stay in Canada, even for somewhat lower pay, if they had a guaranteed income floor and much more freedom to start a company, build an indie project, study, do research, create art, or simply work less.
Canada may also be in a better political position to do this first. Canadians are generally more comfortable with universal social programs than Americans, so Canada could potentially begin the transition years before the US does.
And this is about much more than economics.
A post-work economy could produce enormous intellectual benefits. Think about how much talent is currently wasted because people have to spend most of their time doing whatever pays the bills. More economic freedom could mean more research, invention, software, art, writing, education, entrepreneurship, and experimentation.
It could also have major mental health benefits. Less fear of unemployment, less financial insecurity, less burnout, and fewer people trapped in jobs they hate.
Obviously, people still need purpose, structure, and social interaction. A post-work society should not mean doing nothing. It should mean that meaningful activity no longer has to be tied to having an employer.
Canada should start small and increase UBI gradually as the economy becomes capable of supporting it.
If AI really is pushing us toward a world where less human labor is needed, Canada should not wait for the US to get there first.
Canada should make freedom from mandatory work one of its competitive advantages.
P.S. Where does the UBI money come from? Ultimately, from the companies using AI and robots. As AI and automation allow companies to produce more with fewer human workers, a portion of the resulting profits and productivity gains could be collected and distributed as UBI. The UBI could start small and gradually increase as machines perform a larger share of the economy's work. If robots and AI eventually do much of the work that humans do today, it makes sense for some of the income generated by that automated work to go to everyone rather than flowing almost entirely to the owners of the machines.