The Business Development Bank of Canada (BDC) has released a new report indicating that accelerating the adoption of artificial intelligence (AI) and digital technologies among small- and medium-sized enterprises (SMEs) could significantly boost Canada's productivity and economic growth.
Potential Economic Impact
According to the BDC's analysis, if all Canadian SMEs reached the same level of AI and digital maturity as their top-performing peers, productivity could increase by up to 38%. Over time, these gains could generate approximately $350 billion in economic growth and increase Canada's gross domestic product (GDP) by nearly 14%.
AI's Effect on Sales
The study found that, after accounting for company characteristics, AI boosts sales per employee by 24%. If all Canadian SMEs adopted AI, the country's GDP could rise by 6%.
Jean-Sébastien Charest, BDC's chief information officer, emphasized the importance of intentional AI adoption: "If SMEs start adopting intentional AI and executing on it fully, it will increase their productivity and help bridge the gap the Canadian economy needs right now."
Digital Maturity Measurement
The report is based on a February survey of 1,500 Canadian business owners and decision-makers. BDC measured digital maturity by assigning each company a score out of 100, based on digital technology use, corporate culture, data management, and AI intensity. Only 23% of Canadian companies achieved a "high" or "very high" digital maturity score.
Barriers to Adoption
While 96% of businesses reported investing in digital technologies over the past year, many face barriers such as costs, cybersecurity concerns, and talent shortages. Charest noted that technology investments can be intimidating for SMEs, especially when the benefits are not immediately clear.
"Typically, technology investments in the past decade resonated with big investment," Charest said. "If you tie that back to the fact that they're not always able to picture the benefits, it's intimidating."
Path Forward
The report suggests that the most productive companies use digital technologies to their full potential. Charest advises businesses to identify operational pain points and determine where they can gain the most benefits. "It doesn't come from just the technology," he said. "It comes from rewiring processes and being intentional about changing how you work to gain the full benefit."
