INVESTING IN INTELLIGENCE: POWERING PRODUCTIVITY THROUGH AI (2024)

Issue

While Artificial Intelligence (AI) has been in development for several years, rapid technological innovation has unlocked its broad potential for business productivity across sectors since 2022. British Columbia has the potential to be a leader in AI-driven productivity and growth. However, our province must invest to keep pace with other jurisdictions and remove barriers to widespread AI adoption amongst businesses in British Columbia.

Background

In 2022, the launch of the Generative AI tool ChatGPT by OpenAI showcased AI's capabilities at a scale never seen before. Not only did it disrupt the tech sector, but it also showed the business world the high potential of AI if integrated into everyday operations.

According to McKinsey & Company, Generative AI can automate tasks that take about 60%-70% of an employee’s time.[1] Given that workers are supported in upskilling, Generative AI has the potential to increase labour productivity growth from 0.1-0.6% annually through 2040. This productivity growth is estimated to add around $2.6 trillion to $4.4 trillion to the global economy. Therefore, the rapid adoption of AI in business operations is essential for the growth of businesses and the economy in BC.

With over 20% of Canadian workers using Generative AI in business activities, more than 50% have seen it misused in the workplace.[2] Education on the efficient and ethical use of AI in an organization is essential for ensuring the successful adoption of AI tools.

In 2023, Chambers of Commerce across Canada supported the national adoption of the policies Regulating Artificial Intelligence for Business Security (2023) and Artificial Intelligence in Canada (2023), which call for a national strategy for standards and regulation of the technologies. Driven from a national level, with the robust consultation of business and technology firms, this approach will avoid a patchwork regulatory regime across provinces, inhibiting successful adoption.

In 2021, the Federal Government launched the Pan-Canadian Artificial Intelligence Strategy that supports the research, development, and adoption of AI across Canada.[3] Three out of the four partner institutes responsible for creating initiatives to support the strategy are based in Eastern Canada, with only one based in Edmonton and none in BC. This has helped eastern provinces like Quebec to become leaders in the innovation and adoption of AI and has attracted both public and private sector funding.

In 2021, Quebec was ranked 7th against 63 countries surveyed in Tortois’ Global AI Index[4]. In 2022, the Provincial Government of Quebec rolled out a five-year Research and Innovation Investment Strategy[5]. As part of this strategy, over five years, Quebec will be investing around $217 million to support the adoption of AI by businesses in the province. Additionally, in November 2023, Microsoft announced its plans to invest US$500 million in Quebec’s AI infrastructure; this included funding for creating workforce upskilling initiatives in the province to accelerate the adoption of AI by local businesses.[6] It's important to note that despite Microsoft Canada being one of the founding members of the BC-led Canadian Digital Supercluster, they chose strategically to invest in Quebec’s AI infrastructure.

Similarly, governments across the globe have also recognized the potential of AI for business and economic growth and have implemented programs that will help with the adoption of AI. For example, as part of their National AI Strategy, in March 2023, the UK government launched a £100 Million AI program, BridgeAI, that will help businesses from key sectors with the implementation and adoption of AI by bringing them together with AI experts and developers.[7] Currently, the program is focusing on sectors that have the potential for high technological growth but a low AI adoption rate.

Additionally, in December 2023, the Australian government launched an Artificial Intelligence Adopt Program.[8] The government is providing $17 million to create AI Adoption Centers across the country, which will support the adoption and integration of AI by Australian businesses.

Furthermore, the urgency for governments, including British Columbia's, to develop and adopt their own comprehensive frameworks for AI implementation in the public sector cannot be overstated. As we witness substantial investments and initiatives globally aimed at harnessing the power of AI within the business sector, it is imperative that the public sector does not lag behind. A dedicated framework for AI in the public sector would not only streamline and enhance the efficiency of government services, but also serve as a beacon for ethical and responsible AI use. Such a move would underscore BC's commitment to being at the forefront of AI innovation, ensuring that the province remains competitive and continues to thrive in an increasingly AI-driven world. This strategy should focus on identifying key areas for AI deployment that align with public goals, enhancing public sector workers' skills to work alongside AI technologies, addressing inefficiencies and establishing clear ethical guidelines to govern AI use. By taking a proactive stance, British Columbia can set a standard for AI excellence in the public sector, fostering a more productive, efficient, and innovative government.

Given the significant investments made by governments across the globe and Canada in the development and adoption of AI and its impact on their economies, it is essential for BC to make AI a priority in policy decisions to avoid being left behind.

THE CHAMBER RECOMMENDS

That the Provincial Government:

1. Develop a made in BC AI Strategy that includes:
   • Supporting flexible programming that empowers businesses and increases their productivity and competitiveness through the adoption of artificial intelligence (AI) technology and engineering.
   • Investing in the research and development of artificial intelligence and promote the use of the funding available through the Canadian Digital Supercluster for innovation in AI.
   • Supporting post-secondary institutions in developing upskilling programs focused on the ethical and safe use of AI.
   • A framework for the public sector’s effective implementation of AI technologies to create efficiencies and strengthen public services.