Generative AI to boost Canadian economy by $187bn

Microsoft predicts generative AI will enhance Canada's labour productivity

Generative AI to boost Canadian economy by $187bn

Microsoft Canada President Chris Barry projects that generative AI will boost Canada’s labour productivity by around eight percent by the end of the decade, as reported by BNN Bloomberg.

A recent report by Microsoft, conducted with Accenture, predicts that generative AI could add $187bn to the Canadian economy by 2030. The report estimates that AI will contribute up to $180bn in annual productivity gains and another $7bn from new AI products and services. 

Barry, in an interview with BNN Bloomberg, explained that the study examined various industries, job types, and functions. It found that AI could augment or fully automate approximately 30 percent of these roles.

With a projected 40 percent adoption rate of AI, the Canadian economy could see a significant economic impact, enhancing labour productivity. 

Innovation in Canada

A study by Boston Consulting Group revealed that 57 percent of Canadian executives prioritize innovation, a figure lower than the global average of 83 percent. The study also indicated that 48 percent of executives attributed Canada’s slower pace of innovation to a risk-averse culture.

Despite this, 81 percent of Canadian executives are experimenting with generative AI for innovation, research and development, or product development. However, only 10 percent have implemented the technology at scale. 

AI and the Workforce

Addressing concerns about AI replacing jobs, Barry anticipates that AI will primarily augment the workforce in Canada.

He believes AI will make people more effective by automating menial or task-oriented parts of jobs, allowing workers to focus on higher-order tasks that benefit their organizations and increase their job satisfaction. Barry acknowledges that some job elements may change or be eliminated due to AI.