BoD OFFSITE | TORONTO REGION BOARD OF TRADE
Artificial Intelligence (AI) stands at the forefront of technological innovation, harbouring the potential to significantly enhance economic growth and reshape the global business landscape. The evolution of AI from theoretical research to practical applications has accelerated in recent years, driven by advancements in machine learning, data analytics, and computing power.
Emerging AI technologies are on the cusp of significantly amplifying productivity across industries, with a 1% increase in AI penetration potentially boosting manufacturing output by as much as 14%. Beyond mere data handling, AI’s cognitive leaps in mirroring human intelligence offer innovative problem-solving capabilities.
To maintain the momentum and harness AI’s full potential, we need strategic enhancements in Canada’s computing capabilities.
Yet, as underscored in a recent report, Canada faces a formidable challenge in sustaining its AI ascendancy due to underinvestment in computational infrastructure. This deficiency is demonstrated not just in a scarcity of high-performance computing systems necessary for AI’s evolution, but also in the competitive disadvantage posed by an aging national computing landscape. To maintain the momentum and harness AI’s full potential, we need strategic enhancements in Canada’s computing capabilities. This ensures AI’s proficiency in analysing vast datasets and executing complex tasks is not hindered by infrastructural limitations.
Recognizing these challenges, it becomes even more important to understand the core capabilities of AI requiring robust support. These form the foundation upon which AI can transform industries and support economic growth.
ML empowers computers to derive insights and make informed decisions from data, enhancing risk management and fraud detection in finance through predictive analytics.
NLP equips AI to decipher and respond to human language, enabling chatbots to deliver prompt, context-aware customer service.
This function enables AI to discern and act on visual data, surpassing human precision in quality control processes.
AI-driven robots perform repetitive duties with precision, mitigate error, and ensure safety even in hazardous settings.
AI augments Internet of Things (IoT) devices, allowing for sophisticated data analysis and application in urban resource management, optimizing energy and traffic systems.
The long-term potential of AI extends to the radical transformation of industries and the creation of new markets. As AI technologies evolve, they are expected to play a pivotal role in addressing complex challenges such as climate change, healthcare, and urban planning. The impact of AI on economic growth is anticipated to be uneven across regions, with developed economies that invest heavily in AI research and development standing to gain the most. However, emerging markets could also benefit significantly from AI by leapfrogging traditional development stages, especially in sectors like agriculture, education, and healthcare.
The impact of AI on economic growth is anticipated to be uneven across regions, with developed economies that invest heavily in AI research and development standing to gain the most.
The City of Toronto has emerged as a beacon of AI innovation, nurturing an environment ripe for growth in startups, academia, and synergistic partnerships, resulting in advancements from new machine learning algorithms to the progress in autonomous vehicles. Despite these achievements, broader industry adoption of AI in Canada lags, with only 6% of businesses ready to implement AI in 2023. Recent reports highlight a pressing concern: Canada’s AI endeavours are constrained by inadequate computational resources, echoing the national productivity emergency flagged by the Bank of Canada. If we are to reverse the tide on our lagging productivity and mitigate inflation pressures, strategic investment in high-performance computing infrastructure is paramount. This foundational enhancement is essential to catalyse industry-wide AI adoption, propelling Canadian enterprises to the forefront of global innovation and economic prosperity.
As illustrated by the chart, the potential for AI to enhance productivity is immense, with Toronto poised to outpace neighbouring regions. Embracing the transformative power of AI will not only amplify job creation and diversify the economy but fortify Toronto's global prominence as a nexus of technological evolution.
The proliferation of AI also raises important considerations regarding social trust and governance. On one hand, AI has the potential to enhance social trust by improving the transparency and efficiency of public services and elections through technologies like blockchain and secure digital voting systems. On the other hand, concerns about data privacy, surveillance, and the spread of misinformation through AI-generated content pose challenges that need to be addressed to maintain and enhance trust in societal institutions.
In the rapidly evolving domain of Artificial Intelligence (AI), businesses must adopt a strategic yet agile approach to integration. A culture that prizes continuous learning, robust data governance, supportive infrastructure, and iterative policymaking is essential for sustaining growth and staying abreast of technological advancements. A pivot from the traditional ‘assess, regulate, then implement’ policy structure to a more dynamic ‘assess and adapt while implementing’ model is critical. AI integration and policy development must occur simultaneously, reflecting the fast-paced evolution of AI technologies.
A culture that prizes continuous learning, robust data governance, supportive infrastructure, and iterative policymaking is essential for sustaining growth and staying abreast of technological advancements
Strategic AI entry points for businesses include:
Embrace AIaaS platforms such as Microsoft Azure, Amazon AWS, or Google Cloud AI for accessible, scalable AI solutions that align with business needs.
Tools like OpenAI’s GPT should be recognized for their dual role — as part of the AIaaS ecosystem and as standalone solutions that revolutionize customer interaction.
Implement AI-powered analytics tools to extract actionable insights from customer behaviour, market trends, and operational data.
Recognizing AI’s vast potential to boost the region’s economic vitality, the Board champions the integration of AI to enhance regional productivity and is pursuing the following:
The Board is catalyzing FinTech growth, advocating for AI as a transformative tool in risk management and market expansion.
Through initiatives like the Autonomous Mobility Working Group, the Board promotes regulatory agility, ensuring policy evolves alongside breakthrough mobility solutions.
Partnering with industry leaders, the Board continues to identify AI applications to revolutionize manufacturing and logistics, propelling them toward a future where efficiency meets innovation.
As the Board builds on advocacy efforts to smooth the green transition, using this technology will be instrumental in securing our foothold in the climate economy.
By spearheading tech showcases and conferences, the Board actively knits together R&D, investment, and startup growth, nurturing a vibrant and interconnected AI ecosystem.