The Future of Canadian Business Depends on AI Adoption – So Why Are So Few Businesses Using It?
Artificial intelligence (AI) is here, and it’s here to stay. The technology is steadily being adopted in America and across Europe, revolutionizing the way businesses operate. Not only this, but consumers are also using AI for everything from content generation to data scraping to task management. Universities are also profiting from the tech, developing curricula to ensure the next generation of full-time employees understands the power of AI. Despite this, however, Canadian businesses are lagging behind, adopting AI at a much slower rate than our neighbours to the south. Why?
Research from the Business Development Bank of Canada (BDC) shows that businesses using AI are five times more profitable than those that don’t. This is partially because AI-driven companies have access to unprecedented levels of insight into their data, allowing them to make better decisions faster. Additionally, AI technology can be used to streamline processes, increase employee productivity, and reduce operational costs—all of which can lead to higher profits.
On top of that, the AI industry in Canada today is booming. According to a recent report from the Brookfield Institute for Innovation + Entrepreneurship (BIE), AI-related business spending more than doubled between 2014 and 2018. This means there are plenty of opportunities for businesses to invest in AI technology and get ahead of the competition. And yet, we are lagging behind AI adoption, coming in 20th place among OECD countries in terms of adoption rate, according to a new report from Toronto Metropolitan University.
So, what can we do? How can Canadian businesses adopt AI, improve efficiencies and profitability, and encourage the use of the technology among employees? It starts with understanding its benefits and approaching the technology with an open mind.
AI Improves Efficiencies and Productivity. Full Stop.
Arguably, for businesses, the biggest help AI can provide is increasing efficiency and boosting productivity by automating repetitive and time-consuming tasks. An AI system can analyze data from various sources quickly and accurately, providing useful insights that can inform decision-making. For example, an AI chatbot can assist with customer inquiries, reducing the workload of customer service representatives. By automating mundane tasks, businesses can free up employees’ time to focus on more complex tasks, such as strategy, innovation, and creativity.
Worried About Quality Control? Then AI is For You
AI can help businesses reduce errors and improve quality by analyzing data and detecting patterns that humans might overlook. An AI system can scan through vast volumes of data and identify trends that might have otherwise gone unnoticed. For example, a machine learning algorithm can analyze sales data to identify patterns and predict future trends. This can help businesses optimize their inventory, anticipate market demand, and improve overall performance.
Stay Ahead of the Competition
Businesses that adopt AI gain a significant competitive advantage over their peers. AI can help businesses identify new opportunities, improve customer experiences, and optimize processes. AI can also help businesses predict future trends and adapt to changing market conditions. Companies that adopt AI early can be more agile and responsive to customers’ changing needs, setting themselves apart from the competition. Further, it’s readily known that the adoption of AI leads to increased profits. A 2022 study from McKinsey found that 63% of businesses surveyed reported at least a 5% annual revenue increase in 2021 thanks to AI adoption.
Cut Labour Costs
AI can help businesses reduce labour costs by automating routine tasks that would otherwise require human intervention. This can help businesses save money, reduce errors, and improve quality. In some cases, businesses might be able to replace human workers with AI systems, reducing labour costs even further. However, it’s important to note that AI systems cannot replace human workers entirely. Human workers bring a unique set of skills, such as creativity, empathy, and critical thinking, that AI cannot replicate.
As the Canadian business landscape continues to grow, so will the importance and necessity of AI adoption. There is no reason why Canada should be so significantly behind the adoption of this critical technology. Adoption starts with education, understanding its benefits, and starting small. By adopting AI, businesses can unlock new opportunities and improve their operations, setting themselves up for success in a rapidly changing world. So, what are you waiting for?
