Prime Minister Justin Trudeau shares a laugh with Eric Schmidt, executive chairman of Alphabet Inc., at the Google Go North conference in Toronto, Thurs. Nov. 2, 2017.

TORONTO — The head of Google's parent company contrasted divisive U.S. politics against Canada's innovation and immigration-friendly policies Thursday, adding his company owes this country a favour — one the Prime Minister said he'd be sure to call in. Alphabet Inc. chairman Eric Schmidt said during an onstage chat with Justin Trudeau in Toronto that his company is "enormously thankful to Canadians" for the country's artificial intelligence innovations. "We now use it throughout our entire business and it's a major driver of our corporate success," he said at Google's Go North conference. "So we owe you, right. And we remember." Trudeau replied that Canada would make sure to hold him to it, now that it was "on record." "We'll make sure that works out," the prime minister quipped. Watch: Trudeau says Canada won't be forced into a bad deal on NAFTA

Google is among the backers of the Vector Institute, a Toronto-based artificial intelligence research lab which is part of Ottawa's strategy to drive innovation in Canada. Ottawa is putting up to $50 million into the institute, Ontario is investing $50 million and more than 30 private-sector companies are set to invest $80 million. That's in addition to Google's AI lab in Montreal, which the tech giant launched in November 2016. But as Google's relationship with Canada becomes increasingly cozy, relations between the U.S. and its northern neighbour have come under pressure. More from HuffPost Canada: Google Invests Millions In Canadian A.I. Institute

Google Spinoff's Toronto Smart City Project Has To Be Open, Too The U.S., Canada and Mexico have been in prolonged negotiations over the North American Free Trade Agreement, a deal Schmidt said has been "enormously successful." Schmidt added that he was worried about the impact that U.S. identity politics under Donald Trump — in contrast to Canada's focus on inclusivity and diversity — would have on the countries' dealings. Schmidt noted that the U.S. is "critically dependent" on supply chains from Canada, "including the back and forth that we have in the tech industry." "I'm concerned that the politics in the United States are going to drive various wedges between the excellent historical relations between Canada and the United States," said Schmidt, who wore socks were emblazoned with the Canadian flag.

THE CANADIAN PRESS/Frank Gunn Prime Minister Justin Trudeau speaks with Alphabet executive chairman Eric Schmidt at the Google Go North conference in Toronto, Thurs. Nov. 2.