Generative artificial intelligence could drive an increase in productivity across 13 sectors of up to $78 billion by 2030, according to a report from the federally funded Scale AI global innovation cluster.

Finance and Insurance, Manufacturing, and Retail are the private sectors projected to benefit most from GenAI, says the report, done Montreal-based Scale AI by Deloitte.

Deloitte’s analysis estimates that these sectors could achieve a cumulative productivity boost of $18 billion (under a slow AI adoption scenario) to $33 billion (under a fast adoption scenario) over the next five years.

A separate report by Deloitte’s Future of Canada Centre says widespread adoption of AI could boost Canada’s real GDP by five percent to eight percent over the next decade, driving annual productivity growth of 0.5 percent to 0.7 percent.

“With a foundation of world-class research institutes, a deep talent pool and a robust national AI strategy, Canada is well-positioned to lead in the space,” the report says.

However, to realize this potential, Canada must overcome persistent challenges that have historically hindered the country’s ability to maximize the benefits of technological advancements.

Canada faces several systemic hurdles that threaten its ability to capitalize on the AI revolution, including sluggish business investment in technology, barriers to commercializing intellectual property, and a “trust deficit” on the part of Canadians, according to the report.

“If we don’t address these challenges, Canada will fail to capture the full potential of the AI wave, as it did with the Internet boom in the early 2000s,” the report warns.

“This would mean missing an historic opportunity to revitalize productivity growth, elevate living standards, and secure a competitive edge in the global AI economy – and it would mean losing out on the long-term, wide-ranging benefits of a stronger, more innovative and tech-enabled economy.”
The report presents a comprehensive framework for scaling and sustaining AI in Canada, built around three interdependent imperatives designed to address and overcome the key barriers standing in the way of Canada’s brightest AI future. These imperatives are:

• Define ambition with a “relentless focus on value creation.”

Leaders must set clear, bold and strategic goals that align AI initiatives with organizational and societal priorities.

• Build trust by cultivating responsible AI, supporting AI literacy, and fostering human-AI synergy.

As organizations progress from experiments and pilot projects to fully integrated solutions, trust-building priorities should evolve from raising awareness and establishing basic ethical standards toward implementing a robust governance framework, increasing Canadians’ AI literacy and creating the conditions for optimal human-AI collaboration.

• Commit to AI for good by embracing equitable, sustainable AI.

Leaders should champion equitable and sustainable AI practices to ensure inclusive growth and mitigate unintended consequences.

The report points out that Canada ranks 9^th out of 33 countries that are best placed to benefit from AI and its effects over the coming decades, with the country’s average rate of productivity growth forecasted to increase to around 1.5 percent per year during the 2030s.

This is a marked increase over the annual rate of productivity growth during the 2000 to 2022 period (0.85 percent per year) and slightly higher than the average growth rate during the 1973 to 2000 period (1.33 percent per year).

Despite this outsized potential benefit from AI, only 26 percent of Canadian organizations have adopted AI compared with 34 percent globally, the report notes.

Moreover, Canada’s Global AI index ranking dropped from 4^th in 2021 to 8^th in 2024.

Despite a strong AI research ecosystem, commercialization of AI applications in Canada remain challenging, according to the report.

Canadian innovators cite access to funding, venture finance, mentorship and markets as key factors contributing to the slower pace of business in Canada compared with countries like the U.S.

“Canadian policymakers can set the country up for success by optimizing innovation policy, closing infrastructure gaps, and streamlining procurement processes.”

At the national level, policymakers should concentrate resources on priority sectors such as healthcare, primary industries (agriculture, mining, forestry) and financial services, where Canada has natural strengths and data advantages.

“We also have an opportunity to claim global leadership in responsible AI innovation, as Canada already leads the world in responsible adoption of AI,” the report says.

At the organizational level, the report says the right approach is a thoughtful mix of easy and low-risk quick wins – such as adopting generative AI in customer service – coupled with longer-term investment in high-growth areas (such as strategic initiatives or domains where AI can significantly enhance an organization’s competitive advantage, create new revenue streams, or open untapped markets).

Canada also needs measurable targets for AI value creation to ensure investments yield economic and social benefits, the report notes. As a good model, the report points to Europe’s Digital Decade Framework for 2020-2030, which sets targets that are measurable goals in priority investment areas, including digital transformation of businesses.

Well-designed AI governance and AI literacy needed to address Canadians’ distrust of AI

The report notes that trust in AI in Canada is 19 points lower than the global average, with only 31 percent of Canadians reporting that they trust AI.

To address Canadians’ concerns, AI governance frameworks should include oversight structures, ethical guidelines and accountability provisions to mitigate risks and align AI operations with legal and social expectations, according to the report.

Leaders need AI literacy to drive innovation, manage AI projects, and address ethical concerns, while employees require tailored training to integrate AI effectively into their workflows, the report says.

Public education initiatives are imperative to demystify AI, enhance its perceived benefits, and address risks, the report adds.

According to the 2024 Edelman Trust Barometer, Canadians are more likely to trust technical experts at their companies (60 percent) to tell them the truth about new innovations and technologies than they are to trust journalists (50 percent) or CEOs and government leaders (both 40 percent.
“Businesses thus have a unique opportunity to build confidence through workforce training, ethical practices, and transparent communication,” the report says.

AI adoption should focus on human-AI synergy, amplifying and enhancing human capabilities through:

• Collaboration over automation.

Focusing on complementary strengths:  AI’s efficiency and data processing paired with human creativity and empathy yields better outcomes than automation alone.

• Defined roles and processes.

Clearly defined roles for humans and AI in decision-making and task execution help reduce fears of unchecked AI taking over human jobs.

• Training principles.

Training programs that emphasize timeless human skills (such as creativity and empathy) and skills complementary to AI can help prepare workers for a productive coexistence in an AI-powered environment.

Depending on how it is developed, deployed, used and regulated, AI has the potential to either enhance or undermine the pursuit of a more prosperous future for Canada, the report notes. At the same time, AI can either promote or compromise equity and sustainable goals.

AI for good emphasizes the deployment of AI in ways that not only drive economic growth but also enhance equity and sustainability, such that the benefits of AI are widely distributed and contribute to a sustainable future.

To ensure all Canadians benefit from the AI revolution, the report emphasizes:

• Equitable access and use.

Canada’s brightest AI future is only possible if all Canadians, including those belonging to underserved or marginalized communities, can access and use AI technology.

This includes addressing disparities in infrastructure, education and resources to bridge gaps between urban and rural areas and between high- and low-income groups.

• Ensuring fair outcomes.

Appropriate guardrails are necessary to prevent AI from perpetuating biases, especially in the context of automated decision-making processes.

Innovative organizations can also leverage AI-powered solutions to drive greater equity in areas such as recruitment, healthcare, and education.

• Equity as a competitive advantage.

Organizations that prioritize equitable AI can enhance public trust, build customer loyalty and achieve broader societal impact while mitigating risks.

Al adoption also needs to be aligned with climate resilience, according to the report. This can be achieved through:

• AI for sustainability.

AI can be used to address environmental challenges and mitigate the effects of climate change through, for example, improved efficiency, enhanced responses to natural disasters, and optimized agricultural yields.

Organizations across industries can use AI to reduce waste and resource demand in supply chains through better forecasting and operational efficiency.

• Sustainable AI operations.

According to Deloitte Global analysis, data centres worldwide used more than 380 terawatt hours (TWh) of electricity in 2023. This amounted to about 1.4 percent of global electricity consumption and 0.3 percent of global greenhouse gas emissions.

By 2030, these figures are projected to nearly triple to about 1,000 TWh, or approximately three percent of worldwide power use.

The report says leaders can adopt various tactics to embed sustainability in their AI operation. This could include: reducing redundant research by sharing open-use AI models; using recycled materials to build servers; or investing in energy-efficient AI model practices.

Other tactics include relying on renewable and low-carbon energy sources to power AI modes, or choosing to deploy smaller, fit-for-purpose models that are less energy-intensive.

The report makes several recommendations for strategic leaders and policymakers in each of the three imperatives of Define Ambition, Build Trust, and Commit to AI for Good:

Decisions surrounding AI are among the most consequential that Canadian leaders will make, the report says. The choices leaders make today will shape not only organizational performance and economic growth but also national security, infrastructure, resilience, and Canadians’ daily livers.

Achieving this vision requires immediate action and collaboration on the part of strategic and policy leaders, the report says.

“Now is the time to seize the transformative potential of AI and steer it toward outcomes that reflect out collective aspirations and values.”

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