Generative AI in Canada – Could add almost 2 per cent to Canada’s GDP

This impact paper examines how Canadian start-ups are using generative AI, the challenges they’re facing in implementation, and ways they can take advantage of the technology’s potential to increase productivity.

Key findings

• Generative artificial intelligence (AI) could add almost 2 per cent to Canada’s GDP. Tech-heavy centres, such as Toronto, Waterloo, and Vancouver, stand to gain the most.
• The majority of start-ups we surveyed were already using generative AI (46 per cent) or were exploring it (38 per cent), and most said it had boosted productivity.
• Most businesses we surveyed (63 per cent) were not planning to reduce headcount as a result of deploying generative AI, but many are adjusting how they work and the skills they’re hiring for.
• Our survey also revealed several barriers to generative AI adoption, including high costs, a lack of reliable training materials, concerns over data privacy and security, and uncertainty about how the technology will be regulated.

Recommendations

• Invest in experimentation: To take advantage of generative AI’s potential, Canadian businesses need to break out of their historic pattern of under-investing in research and development.
• Develop a national AI infrastructure strategy: The federal government should devise a national strategy to support the development of supercomputing and data infrastructure. This strategy should include measures to bolster access to affordable computing power for researchers and small and medium-sized enterprises (SMEs).
• De-risk adoption for SMEs: The biggest employers are SMEs,
  but they might not have the resources to spend on adoption. Governments could de-risk adoption through financial incentives, while organizations that support SMEs should consider developing education and awareness programs and creating networks, clusters, toolkits, and best-practice guides to help speed up implementation.
• Regulate smartly: Federal regulations and guidelines that encourage employers to safely adopt generative AI without stifling innovation are needed. Corporations must engage in dialogue with the government around smart regulation for the safe adoption of generative AI in workplaces.
• Upskill employees: Although it’s not yet clear how generative AI will alter the broader labour market, it seems the most valuable workers will be those who successfully use generative AI to augment their own output. Business leaders need to support employees along their learning journey and foster best practices.
• Prep the next generation: Canada’s deep pools of AI talent are
  a major asset and need to be nurtured further. Education sectors need to help prepare students for the changing skill sets required by business and industry.

Chosen excerpts by Job Market Monitor. Read the whole story @  Real Talk: How Generative AI Could Close Canada’s Productivity Gap and Reshape the Workplace—Lessons From the Innovation Economy – The Conference Board of Canada