Can AI-driven efficiencies address Canada's lagging economic productivity?

A new report from TD Economics says that while advancements in AI technology could help the Canadian economy address long-standing productivity issues, its potential for growth will depend on its implementation.

TD Senior Economist Rannella Billy-Ochieng’ and Economic Analyst Anusha Arif said in a report Tuesday that AI offers a potential “remedy” to Canada’s productivity issues. The report said that weak investment has contributed to productivity issues, but a larger issue has been the “slowing rate of technological change.” 

“Canada’s unique AI ecosystem provides a good starting position for us to ride this industrial growth wave, but poor adoption policies and weak AI preparedness may derail this opportunity,” the report said. 

“In the more optimistic scenario, the adoption of AI across industries could lead to an output increase of five to eight per cent over the baseline over the next decade.”