TD Economics reports that generative AI can enhance Canada's GDP by up to 8 percent over the next decade
A report from TD Economics indicates that generative AI could significantly enhance Canada’s productivity growth, as per the Financial Post.
Economic analyst Anusha Arif and senior economist Rannella Billy-Ochieng estimate that this technology could boost Canada’s GDP by five to eight percent over the next decade. However, they caution that Canada’s low AI adoption rates might impede this potential.
The report emphasizes that generative AI stands out from previous automation technologies due to its ability to solve complex problems and mimic human cognitive abilities.
Unlike earlier innovations that automated routine tasks, generative AI enhances productivity by augmenting human capabilities, fostering more creative and strategic thinking.
TD Economics believes that generative AI can revolutionize industries by providing previously unattainable solutions, leading to significant advancements across various sectors.
“Cognitive machines have the potential to help workers perform more efficiently and could even augment the creation of innovative ideas,” the report notes.
While concerns about job losses due to AI persist, the report suggests these fears may be unfounded. Historically, technological advancements have led to net job creation and increased demand for labour.
Early evidence indicates that AI will complement rather than displace workers, offering a substantial boost to economic growth. Canada’s high concentration of educated workers supports this optimistic outlook, with many ready to transition to roles leveraging AI.
To fully realize AI’s potential, the report identifies challenges such as weak computing infrastructure and regulatory uncertainties that need addressing. TD Economics stresses that Canada must encourage broader AI adoption across businesses to stay competitive in the global AI landscape.
The report concludes that AI can boost economic growth by increasing efficiency and accelerating innovation, leading to future productivity growth.
