Boosting Competitiveness of Canadian Businesses: Clearing a Path to Wide-scale AI Adoption

Executive Summary

Firms that integrate artificial intelligence (AI) into their existing business activities can improve their competitiveness, innovation performance, and prosperity. Yet, despite these potential benefits, and despite Canada’s robust ecosystem of fundamental research on AI, Canadian firms lag global peers in using AI to support and enhance their businesses. Why are Canadian firms hesitating or struggling to adopt AI, and what can help them improve?

A careful review of existing literature and data reveals a range of barriers and resource gaps—related to infrastructure, financing, cultural and organizational structures, and skills and knowledge. Talent, in particular, is a predominant theme that cuts across all AI adoption barriers, as a precondition for successful AI adoption. Canadian firms that want to adopt AI often find that they lack access to the talent they need to do so effectively. Addressing this talent gap is essential if Canada wants to overcome barriers to AI adoption and see its benefits manifest throughout the economy. This paper makes a contribution to improving AI adoption by examining what is known about AI’s potential economic benefits, the state of AI adoption in Canada and globally, reasons for lagging adoption among Canadian firms, and, critically, the kinds of technical, managerial, and translation talent needed for successful AI adoption.