The Productivity-AI Nexus: Can Machines Fix What People Can’t?

The promise and the paradox

AI-driven automation could add $200 billion to GDP by 2030, but Canada’s adoption rate remains uneven. The top 10% of firms account for 80% of AI spending, leaving SMEs behind.

Indicator20242030 (proj.)Source
AI adoption (large firms)62%90%NRC 2025
AI adoption (SMEs)27%55%NRC
GDP uplift potential+6–8%BoC

Implementation challenges

  • Data fragmentation across systems.
  • Shortage of AI-literate managers.
  • Ethical and regulatory uncertainty slowing pilots.

What leaders can do

  1. Build AI literacy at leadership level. Strategy follows understanding.
  2. Integrate AI into workflow design, not as an add-on.
  3. Measure output gains, not tech spend. Focus on value per employee.
  4. Collaborate through sectoral AI hubs. Pool investment across supply chains.

Arcus Insight: Productivity is not a macro problem — it’s an adoption problem. The firms that deploy AI operationally, not rhetorically, will shape the recovery curve.