• by Laurie Sullivan  @lauriesullivan, June 4, 2024

Microsoft's report released Tuesday estimates gains to Canada's economy based on generative AI could add nearly $187 billion annually.

The report, conducted by Accenture, suggests labor productivity would see the gains by saving workers 125 hours per year, which is equivalent to a half-hour saved each workday.

Canada’s productivity since 2015 has grown by only 0.6%, according to the report. If Canadian organizations take advantage of GAI, the report estimates to change Canada’s labor productivity by 8%.

GAI is estimated to add $7 billion through the creation of new related products and services. Small-and-medium size enterprises stand to benefit from GAI, with potential economic value reaching up to $100 billion by 2030. Making it more interesting, about 99.7% of all Canadian employers are SMEs, and around 50% of Canadian GDP is generated by this group of businesses according to the report.

To see the gains, it would require responsible adoption. This means jointly lifting adoption and public support. Pursuing both simultaneously is essential as neither will sustainably grow without the other. Canada has made progress toward responsible adoption, including through its pioneering PanCanadian AI Strategy.

With the Artificial Intelligence and Data Act, Canada is looking to build a foundation for responsible AI design, development, and deployment. Canada is also engaged with international organizations such as the G7, OECD, GPAI, and UN to drive interoperable AI regulations.  

The Canadian government announced a $2.4 billion investment in AI as part of Budget 2024 to build infrastructure and drive adoption, but six key events must happen before the economy can grow:

1. Increased public trust in GAI

2. Clear policy framework

3. Skilled workforces

4. Progressive organizational culture and leaders

5. Access to affordable models and infrastructure

6. Collaborative ecosystem

Google, Meta, and Microsoft have been spending money and time on studies that suggest their respective companies boost local economies.