Canada's SMEs Could Unlock $350B in Growth with AI and Digital Technologies
Canadian SMEs could achieve significant economic growth by reaching the digital and AI maturity of top performers. The key challenge has shifted from adoption to effective execution, potentially unlocking $350 billion.
Canadian small and medium-sized enterprises (SMEs) could unlock nearly $350 billion in economic growth if more firms reached the digital and AI maturity of the country’s top performers, according to a new study from the Business Development Bank of Canada (BDC).
The research highlights that the primary challenge is no longer awareness of technology adoption but effective execution and scaling. Digital maturity reflects a business's ability to translate technology, data, and processes into performance, while AI maturity specifically refers to how effectively AI is embedded in daily operations.
Canada's GDP could grow by nearly 14%, or $350 billion, over time if all SMEs operated at a mature level. While the digitization of Canadian businesses is accelerating, only 30% of Canadian SMEs currently use generative AI, despite those that do reporting a 24% productivity increase.
BDC suggests that obstacles to AI adoption are often based on myths, such as AI being too complex or only for large companies. Achieving top-tier digital maturity could boost SME productivity by as much as 38%, positioning it as crucial for Canada's economic future and sovereignty.