Canada’s economy could grow to $3.65 trillion over the next decade, but only if the country addresses its lag in artificial intelligence (AI) adoption, according to a new report from PwC Canada.
The Value in Motion: Canada’s Moment to Capture New Growth report, released recently, outlines how global megatrends such as climate change, geopolitical shifts, and the advancement of AI are reshaping industries and creating opportunities for cross-sector collaboration.
Nochane Rousseau
“The structure of our economy is transforming, and the pressure on businesses to reinvent themselves is the highest we have seen in years,” said Nochane Rousseau, national managing partner at PwC Canada. “Traditional industries are being reconfigured into new ‘domains of growth’ that address fundamental human needs.”
Rousseau said this moment presents “a powerful opportunity for Canadian businesses to reinvent their models, collaborate across sectors to build competitive advantages, and break through traditional barriers to compete — and win — in new sectors.”
The report’s most optimistic projections show that if AI meets its full potential, Canada’s GDP could rise by nine per cent over baseline expectations by 2035. However, the United States is expected to achieve a 14 per cent boost, highlighting Canada’s lower rate of AI adoption — currently about three-quarters that of the U.S.
PwC’s findings suggest Canadian companies risk increased exposure to global competition and disruption unless they accelerate their use of AI and other advanced technologies.
Key sectors identified in the report include mining, technology and defence:
Mining: With global demand rising, Canada’s access to critical minerals positions the sector to provide secure, alternative sources amid shifting geopolitical alliances. The report calls for strategic partnerships and the adoption of AI and quantum computing to increase efficiency and project speed.
Technology: While Canada had early leadership in AI, the report points to quantum computing as a new area of potential. Quantum chips use less electricity and can solve complex problems, making them valuable for powering AI applications.
Defence: Growth in defence spending and the need for modern equipment present opportunities for Canadian manufacturers, especially in developing dual-use technologies that serve both military and civilian markets.
“Business leaders must rethink how they create and deliver value by working with other players and deeply integrating technologies like AI,” said Chris Mar, partner and AI, tech and data leader at PwC Canada.
Chris Mar
“Policies that make Canada more attractive to workers with skills in AI and quantum computing are critical. A focus on building public trust in AI is also paramount, as adoption is inseparable from trust and security.”
The report also outlines how PwC is adapting to these megatrends. Internally, the firm is deploying thousands of AI agents through its “agent OS” platform to improve productivity across its tax, assurance and advisory services.
More than 291,000 PwC staff globally have completed AI training through the firm’s Network AI Academy. PwC Canada has committed $200 million over three years to become an AI-powered firm and has formed alliances with technology providers such as Microsoft, AWS, Google Cloud, and OpenAI.
All figures in the report are based on 2022 Canadian dollars.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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