Canada's AI Adoption Lagging Despite Strong Potential, Desjardins Economists Warn
Canada holds a "strong research ecosystem and a talented pool of AI professionals," but the adoption of AI technologies by its businesses remains "uneven and relatively slow" compared to the U.S. and China, according to a report by Desjardins Group economists. The paper, published Thursday and led by chief economist Jimmy Jean, underscores the transformative potential of AI, suggesting that successful integration could yield significant productivity gains and improved living standards. However, delays and poor management of AI adoption could widen prosperity gaps.
The report stresses the importance of navigating ethical concerns, developing regulatory frameworks, and creating conditions to attract and retain top talent for successful AI integration. Currently, only 15 percent of Canadian businesses have adopted AI, with 19 percent planning to do so, according to a Deloitte survey. Additionally, a CDW survey revealed that while 60 percent of Canadian companies are open to AI, only 20 percent feel equipped to implement it.
AI adoption in Canada varies by industry and geography. Larger companies in cities like Toronto and Vancouver show higher adoption rates compared to Montreal and Edmonton. Despite these challenges, Canada remains competitive in the AI landscape, being the first to establish a national AI strategy in 2017 and ranking fifth in the 2023 Tortoise global AI index.
To maintain its competitive edge, the Desjardins economists recommend steps such as digitizing business operations, increasing computing capacity, fostering AI startups, and prioritizing workforce training. They emphasize the need for collaborative efforts between the public and private sectors to encourage AI adoption and share risks.
The report concludes that failing to adapt could threaten Canada's long-term economic prospects, making concerted action necessary to leverage AI's potential.
Top "Impossibly Unaffordable" Cities For Housing
A new report by the Demographic International Housing Affordability survey reveals that cities in the U.S., particularly on the West Coast and Hawaii, are among the most unaffordable for housing. Topping the list is Hong Kong, known for its high rents and low homeownership rates. Other cities making the top 10 include San Jose, Los Angeles, San Francisco, San Diego, and Honolulu. Meanwhile, Australian cities like Sydney, Melbourne, and Adelaide also rank as highly unaffordable.
The report measures affordability using a price-to-income ratio, attributing high prices to urban containment policies and a surge in housing demand during the pandemic. It suggests looking to policies like those in New Zealand, which free up land for development, as a potential solution.
In terms of affordability, cities like Pittsburgh, Rochester, and St. Louis in the U.S., along with Edmonton and Calgary in Canada, rank as some of the most affordable housing markets globally.
Asia's Potential as a Hub for Web3 and Crypto Industries
Continued regulatory challenges in the U.S. have prompted several crypto companies to explore more favorable environments in Asia. At Coinfest Asia 2023, industry leaders noted a trend towards increased acceptance of crypto in Asia, supported by the region's significant share of the global cryptocurrency market.
Asia has strong growth potential in the Web3 market, projected to reach US$81.5 billion by 2030, with the Asia-Pacific region expected to record the fastest income growth. Countries like Dubai, Singapore, and Hong Kong are highlighted for their open regulatory environments towards crypto activities. Significant crypto adoption rates in countries like India, Vietnam, the Philippines, and Indonesia bolster Asia's position as a potential major center for crypto and Web3 technology development. Events like Coinfest Asia further support this growth by providing platforms for industry collaboration and innovation.