Artificial intelligence adoption and productivity in Canadian firms

Artificial intelligence (AI) is widely recognized as a transformative technology with the potential to reshape business operations and drive productivity growth. Understanding the relationship between AI adoption and business performance is critical for shaping policies that foster innovation, technology diffusion and sustainable economic growth, especially given Canada’s persistent productivity challenges. This article summarizes key findings from the study “The Role of Complementary Capabilities in AI Adoption and Productivity: Firm-Level Evidence from Canada” by Li and Liu (2026), published in Canadian Public Policy. Using a novel firm-level database that links multiple waves of the Survey of Digital Technology and Internet Use (SDTIU) to administrative business microdata, the study examines factors influencing AI adoption among Canadian businesses and explores the relationship between AI adoption and firms’ labour productivity.