Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

Canada needs an AI plan to reap productivity rewards, report claims

OTTAWA — Canadian governments should demonstrate the promise of AI to help address the productivity crisis by adopting the technology in their own operations, a new report recommends.

News

Canada needs an AI plan to reap productivity rewards, report claims

Governments should roll out the new technology themselves to help get the public businesses comfortable, a longtime policy advisor recommends

By Murad Hemmadi
Canadian governments should work to encourage the use of AI in key economic areas like the management of power grids, supply chains or health-care systems, the report argues. Photo: The Canadian Press/John Woods
Dec 10, 2024
A A
A Small A Medium A Large
Share

Gift

Share

OTTAWA — Canadian governments should demonstrate the promise of AI to help address the productivity crisis by adopting the technology in their own operations, a new report recommends.

The report, from the Public Policy Forum think tank, says AI could be a major productivity driver in services sectors, which employ most of the workforce, just as mechanical automation has done for industries that make and handle goods. 

Talking Points

  • Artificial intelligence can help kickstart Canada’s stagnant productivity growth by increasing output in service sectors, which make up much of the economy, according to a new report from the Public Policy Forum
  • It recommends governments adopt the technology to show a skeptical public its benefits, and serve as an early customer for firms developing AI products  

It calls for Canadian governments to develop programs and policies to encourage the technology’s use in key economic areas like the management of power grids, supply chains or health-care systems. “Canada is probably going to have to focus,” said Peter Nicholson, the report’s author. “There’s no reason why we have to do everything.”

Canadian banks already rank well on an index of financial institutions’ use of AI, but businesses here have long been slow to adopt new technologies and spent less than firms in other countries on R&D. 

The report, which will be published Wednesday, calls for governments to act as model AI users, demonstrating how the technology can safely improve the delivery of services to convince a Canadian public that’s notably skeptical of the technology. “AI needs more positive cases to be made for it,” said Nicholson, a former corporate executive who has advised policymakers at home and abroad.

Related Articles

Business-serving firms turn to AI for efficiency, but revenue gains come slower: Survey

By Murad Hemmadi

Canada will have to wait for AI productivity boost: Macklem

By Murad Hemmadi

Government departments can also act as early customers for startups developing AI products. But the report warns that their normal way of buying the cheapest option won’t work here. “It will cost more, it will have more risk, it will take more time,” Nicholson said. Policymakers should treat AI the way they once did defence, accepting the extra expense to support growth.

Nicholson said he intentionally focused on AI applications that already exist today rather than future magic solutions. In the near-term, generative tools could help increase workers’ output by more quickly summarizing information; producing software code; translating between languages; and helping robots to better navigate the world. 

Bank of Canada governor Tiff Macklem recently warned that while AI has the potential to be economically transformational, its effects on productivity will take “many years.” For individual firms, there’s no evidence that adopting the technology improves output in the short term, according to a study published Monday by The Dais, a Toronto-based think tank.

Gift the full article

Nicholson’s report does not put dates or dollar figures on the AI impact, but argues Canada should embrace it nonetheless—especially since governments and large companies in other places are sure to. 

#artificial intelligence #economy #productivity #Public Policy Forum

Sponsored Content

The road to risk-smart regulation

By Deborah Aarts

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: The Canadian Press/John Woods

Most Popular This Week

A side shot of Annie Andrews passing a cluster of supporters with a hand outstretched and a joyful look on her face.
News

What the Democrats’ midterm sweep means for Canadian business

By Joanna Smith
An exterior of a five-storey office building with two Canadian flags out front. Above the entrance is a four-storey window with Ciena's logotype written sideways.
News

Former Ciena employee claims she was fired for reporting sexual assault by executive

By Catherine McIntyre
An image of Prime Minister Mark Carney, standing in front of a microphone and speaking. He is wearing a blue suit and tie, while looking away from the camera. He is standing in front of a dark background. The Cohere logo is visible in the background.
News

Conservatives challenge Ottawa to justify its $1.6B Cohere investment

By Catherine McIntyre
A logo that reads AI in blue lettering against a light yellow background.
News

BDC launches programs to test Canadian AI tools in small businesses

By Catherine McIntyre

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Commentary

Carmichael: Canada’s sovereignty needs more than a strong economy

By Kevin Carmichael

Briefing

Enbridge says Pathways and other pipeline projects still hinge on final energy deal

By Meghan Potkins   |   Nov 6, 2026

Brookfield’s Teskey says AI infrastructure needs ‘social licence’ as firm raises US$25B

By Chaimae Chouiekh   |   Nov 6, 2026

Pembina in talks for next phase of Meta-linked data-centre power project

By Meghan Potkins   |   Nov 6, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

Commentary

Carmichael: Canada’s Nobel-winning economist thinks Carney is on the right track

By Kevin Carmichael   |   Oct 31, 2026
A man wearing a dark suit jacket, blue button-down shirt and spotted brown-and-blue tie stands in front of a black and blue background, gesturing and speaking into a microphone.
News

Former Ciena employee claims she was fired for reporting sexual assault by executive

By Catherine McIntyre   |   Nov 3, 2026
An exterior of a five-storey office building with two Canadian flags out front. Above the entrance is a four-storey window with Ciena's logotype written sideways.
Analysis

Why a midterm sweep for the Democrats won’t end Canada’s trade nightmare

By Joanna Smith   |   Oct 29, 2026
News

The Canadian Forces were warned about safety gaps for 20 years before Wainwright disaster

By David Reevely   |   Oct 30, 2026
A side shot of a row of fully equipped soldiers making a beach landing from zodiac watercraft, rifles in hand.
News

Wealthsimple launches AI assistant as Canada’s big banks block third-party agents

By Chaimae Chouiekh   |   Nov 5, 2026
News

Canada is buying military gear for a world where ‘pretty much everything’ changed

By David Reevely   |   Nov 2, 2026
Three people, wearing business clothing and red poppy pins, sit on chairs on a stage. The person in the middle is speaking. A blue background is visible behind them.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account