Canada's Digital and AI Adoption for SME Growth

This report discusses the critical role of artificial intelligence (AI) and digital tools in addressing Canada's productivity crisis, particularly among small and medium-sized enterprises (SMEs). It outlines the current state of AI adoption, revealing that over half of Canadian SMEs utilize AI, while many small firms face challenges in confidence and capacity. The report highlights the productivity gap, noting that Canadian workers produce significantly less per hour compared to their U.S. counterparts. It emphasizes the necessity of strategic AI and digital adoption, supported by targeted policy measures, to enhance economic competitiveness. The document also details the uneven progress in AI integration across firm sizes and regions, indicating that medium-sized firms are more advanced in their adoption compared to small firms. Furthermore, it underscores the importance of digital tools for business growth and survival, advocating for government action to support SMEs in overcoming barriers to digital transformation.