Canada’s productivity gap drives new push for AI

Experts say stronger compute capacity and commercial pathways are vital for Canada’s next phase of AI growth.

Canada’s productivity pressure is expected to push rapid AI deployment across business and government in 2026.

Canada’s productivity gap is expected to accelerate nationwide adoption of AI in 2026, according to leading legal and industry experts. Businesses and governments are moving from experimentation to deployment as pressure mounts to improve economic performance.

Canada retains strong research credentials and a responsible AI culture, yet still trails in compute capacity and commercial scaling. Major investments scheduled for 2026 are expected to support emerging demand across sectors.

Firms are seeking clearer national rules to guide the safe adoption of AI, especially regarding privacy and governance. Ottawa’s recent research and talent programme aims to attract global experts and strengthen commercial pathways.

Industry leaders expect AI agents to gain prominence by 2027, increasing the need for human oversight and trust. Policymakers and companies are urged to strike a balance between rapid innovation and clarity, confidence, and long-term productivity goals.

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