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Artificial intelligence adoption and productivity in Canadian firms

Author

Listed:
  • Jiang Li
  • Huju Liu

Abstract

Artificial intelligence (AI) is widely recognized as a transformative technology with the potential to reshape business operations and drive productivity growth. In Canada, AI adoption among businesses has accelerated in recent years. According to Statistics Canada (Bryan et al., 2025), 12.2% of Canadian firms used AI to produce goods or deliver services in 2025—doubling the share from the previous year—and an additional 14.5% planned to adopt AI within the next 12 months. The enthusiasm surrounding AI is not unwarranted, given its projected impact on productivity. Estimates suggest that AI could lead to a rise of 0.5% to 0.7% in total factor productivity over a decade (Acemoglu, 2024) and an increase of up to 1.5 percentage points in annual labour productivity growth over a 10-year period in the United States (Goldman Sachs, 2023). For Canada, potential gains include an increase of 0.4 to 1.1 percentage points in annual labour productivity growth over the next decade (Filippucci et al., 2025).

Suggested Citation

  • Jiang Li & Huju Liu, 2026. "Artificial intelligence adoption and productivity in Canadian firms," Economic and Social Reports 202600400002e, Statistics Canada, Analytical Studies and Modelling Branch.
    • Handle: RePEc:stc:stcp8e:202600400002e
    DOI: https://doi.org/10.25318/36280001202600400002-eng
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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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