Unlocking Canada’s Potential: Embracing AI for a New Era of Productivity

Canada is facing a productivity challenge. Between 2000 and 2002, productivity declined by 9% compared to the United States, landing us in 18th place among OECD countries. This is a wake-up call.  

However, there is good news. Artificial intelligence holds the key to unlocking a new era of productivity in Canada. Our latest economic impact report showed that generative AI could boost the Canadian economy by $230 billion and save the average Canadian worker over 175 hours every year. If we take advantage of this, it could lead to significant productivity gains for Canada greater than either the introduction of the personal computer or the internet revolution. 

Canada has all the ingredients for success: world-class AI researchers, top-tier academic institutions and innovative companies like Cohere, Moov AI, and Shopify. But here’s the catch: we need to move beyond the tech-savvy early adopters and bring AI to the heart of our economy—the small, mid-sized, and large enterprises across every sector.

And the appetite for AI is already there. A recent survey from Public First revealed that over half of Canadian businesses that are early adopters of AI have already found practical use cases, and 80% believe AI will boost their productivity. There is value to be unlocked. 

Moving Beyond AI Adoption to Adaptation 

While most companies are exploring ways to incorporate AI into their businesses, a cultural shift is needed to fully unlock its potential. Many are still in the early stages of AI experimentation, with pilot projects confined to the CIO or CTO’s office. It’s time to move beyond experimentation to integration, embedding AI in daily operations across departments and businesses of all sizes. 

What we have seen at Google, and with many of the companies we’re supporting in this transition, is that the first leg of the race is actually fairly straightforward, and there are significant, almost immediate gains to be had by deploying AI across marketing, sales and customer service. 

For example, when our customers use our AI-powered marketing products, their campaigns see an immediate improvement. They simply share their campaign goals and creative assets, Google AI automatically produces and runs a highly effective ad campaign across Google’s properties, which achieves, on average, an 18% better outcome. Similar results can be seen across HR, customer service, and logistics.

The real challenge lies in adapting company culture to fully leverage AI. This requires strong leadership, a willingness to embrace change and a focus on talent development. 

The ABCs of AI Adaptation

As AI becomes more integrated into business operations, it will significantly alter how employees work. And, entirely new jobs we can’t imagine today will be created as well. For example, who could have imagined flight attendants before commercial air travel? 

Companies that have a clear vision from the top, a culture that embraces change, leaders who inspire their teams to harness AI, and a talent strategy focused on agility and adaptation will be most successful. 

For Canadian companies to unlock value and productivity gains from AI, I’m seeing successful companies do three things. I call it the ABCs of AI adaptation. 

• A is that All teams need to be involved and should Always be learning about AI. The approach to AI needs to be interdisciplinary across teams, involving the CMO, CHRO, CFO, and CEO, and ensuring other teams have a critical seat at the table. Invest in upskilling employees at all levels, particularly frontline managers. Grow with Google’s AI Essentials course is a quick way to start familiarizing yourself with AI.  

• B is for setting Bold business goals, and not only progression goals. Set clear objectives for AI implementation that align with business values and have measurable KPIs. This drives engagement and keeps AI top-of-mind across functions and up to the C-suite. 

• And C is for Culture of change. Cultivating a culture that embraces change and innovation is essential. Leaders should be AI champions, encouraging experimentation and providing employees with incentives to explore new use cases.  

Unlocking Canada’s Potential Together 

Canada has a unique opportunity to turn our productivity challenges around and become a global leader in the AI-powered era. 

However, that success is not guaranteed. Every country in the world is looking to boost productivity, and they also see AI as an important tool in opening new markets, creating new products and improving efficiency. 

By embracing a bold vision, empowering our workforce, and fostering a culture of innovation, we can unlock our full potential and drive progress for Canadians.