{
  "id": 19657704,
  "title": "AI is not adding to Canada’s GDP like it is in the U.S., new analysis says",
  "url": "https://urgent.news/2026/11/12/ai-is-not-adding-to-canadas-gdp-like-it-is-in-the-u-s-new-analysis",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-12T13:07:38.000Z",
  "source": {
    "name": "Global News",
    "slug": "global-news",
    "url": "https://globalnews.ca/news/12146941/canada-ai-gdp-growth/"
  },
  "original_language": "en",
  "account": "A new analysis from the Royal Bank of Canada (RBC) economists indicates that Canada's artificial intelligence (AI) adoption has not significantly impacted the country's GDP growth, similar to the United States. Claire Fan, a senior economist at RBC, mentioned that Canada is starting to invest more in AI infrastructure, but the bulk of these investments are for computer and peripheral equipment made overseas. In the first half of 2026, purchases of this equipment surged by 28%, according to national accounts data. However, 75% of this equipment is imported from foreign countries.\n\nJoël Blit, an economics professor from the University of Waterloo and co-founder of the Canadian AI Adoption Centre, expressed that Canadian businesses are adopting AI at a slower pace compared to their American counterparts. While Blit acknowledges that AI investments are indirectly benefiting other economies, he argues that the most crucial question for economists is whether productivity will rise significantly. He believes that it will take longer for this productivity increase to materialize due to the need for investments and the time for these technologies to adapt.\n\nBlit explained that the initial stage of AI adoption involves integrating the new technology into existing workflows as a direct replacement. For instance, a human computer, who once performed arithmetic manually, now relies on a computer to perform the same task. While this method slightly boosts productivity, Blit asserts that the real gains will come when people reimagine their business operations. He cited examples of Barnes & Noble and Amazon, where Amazon reimagined the book-selling industry as a whole.\n\nDespite the negative perception of AI among Canadians, data from the Angus Reid Institute shows that 41% of Canadians use AI more than once a week, while 30% use it not at all. Blit believes that individual AI usage by Canadians could be beneficial in the long run as much of the adoption is occurring at the grassroots level rather than simply top-down enterprise adoption. Fan added that AI investments over the past year have accounted for just over 1% of GDP per hour worked.",
  "summary": "A slower adoption of artificial intelligence has had a net-neutral effect on Canada’s GDP, new analysis says. But long-term productivity gains are still possible.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}