From Hockey to High-Tech: Canada’s AI Power Play
PwC warns Canada must fast-track AI adoption or risk losing ground to global competitors.
Canada stands at a crossroads. A new PwC Canada report estimates that if businesses accelerate artificial intelligence adoption, the nation’s economy could climb to $3.65 trillion by 2035. That figure represents a dramatic leap from the $2.89 trillion GDP recorded in 2023. The forecast is not just a matter of numbers—it reflects the country’s ability to embrace technology, tackle climate challenges, and navigate an increasingly volatile geopolitical landscape.
The report maps out three possible futures. In the most optimistic case, Canada achieves a 9.3 per cent boost over its baseline growth expectations, driven by a cooperative global environment, trust in cybersecurity, and industries moving quickly to scale AI. A middle path shows a 6.9 per cent lift, while the most cautious outlook points to just 2.1 per cent growth above baseline. These scenarios illustrate both the upside potential and the risks of hesitation.
Closing the Adoption Gap
Nochane Rousseau, national managing partner at PwC Canada, makes it clear that Canada is lagging behind. Canadian AI uptake sits at about three-quarters of U.S. levels, a gap that threatens to keep the country behind its largest trading partner. While Canada was once an early pioneer in artificial intelligence research, the commercialization of those technologies has not kept pace. Rousseau argues that closing this gap will demand bold investment, government support, and a willingness among companies to rethink how they scale innovation.
Global comparisons matter. Even under the most optimistic forecast, Canada’s projected gains trail behind the United States, where PwC anticipates a 14 per cent GDP boost by 2035. The gap underscores a pressing reality: unless Canadian companies push forward, they risk becoming dependent on foreign technologies while forfeiting domestic economic growth.
The Role of Key Sectors
The report highlights mining, technology, and defence as pivotal industries where AI adoption could create transformational growth. Canada’s mining sector, rich in critical minerals essential for electric vehicles and military applications, could use AI and quantum computing to accelerate permitting, streamline exploration, and cut environmental impacts. Faster timelines and reduced resource consumption would allow Canada to seize a global leadership role in sustainable mining.
Defence looms large in this vision. With NATO allies raising defence spending targets to five per cent of GDP by 2035, Canada’s annual defence budget could reach $150 billion. The sector requires raw materials, advanced technology, and artificial intelligence. Companies from steelmakers to semiconductor suppliers stand to benefit if Canada builds a homegrown supply chain for modern military needs. Bombardier’s recent pivot toward defence signals how legacy firms can transform in anticipation of these demands. Small and medium enterprises will also have openings to provide niche services ranging from precision machining to AI-driven testing.
Climate, Trade, and Trust
The path to a $3.65 trillion economy will not be smooth. Climate change, shifting trade realities, and strained geopolitics add layers of complexity. Food production, for instance, faces twin pressures from shrinking arable land and urbanization. The report suggests that mining companies could help supply fertilizers like potash to ease these challenges. Corporations will increasingly need to collaborate across industries, moving into adjacent markets and sometimes into entirely new sectors.
Underlying it all is trust. PwC emphasizes that adoption of artificial intelligence cannot be separated from confidence in its security and reliability. Governments will need to enact policies that support innovation while instilling public trust. Procurement strategies that prioritize Canadian AI firms could help anchor this ecosystem at home. The opportunity is immense, but it hinges on confidence, policy, and public perception as much as on technology itself.
A National Imperative
The PwC report reads less like a forecast and more like a call to action. The message is simple: if Canada accelerates AI adoption, fosters collaboration across industries, and implements forward-looking government policies, it could unlock an additional $760 billion in GDP by 2035. But without urgency, Canada risks falling behind competitors who are already moving faster.
The challenge now lies in execution. Rousseau believes the optimistic scenario is achievable, but only if Canadian companies commit to making the necessary investments despite uncertainty around tariffs and global tensions. Canada’s future prosperity, he argues, depends on whether it can convert its research leadership into commercial dominance.
Canada helped pioneer AI. The next decade will determine whether it can also lead in applying it.
Conclusion
Artificial intelligence offers Canada a once-in-a-generation chance to supercharge its economy. The potential $3.65 trillion GDP by 2035 is not guaranteed, but it is within reach if businesses and government align. Mining, defence, and technology provide natural springboards, while climate change and shifting trade realities demand innovation. The prize is immense, the risks of inaction even greater. Canada must move now, not tomorrow, to secure its place in the AI-driven global economy.