Future-Proofing Ontario: Empowering Businesses with AI Skills
June 2025
Overview
Artificial Intelligence (AI) is a powerful economic enabler, creating over 22,000 jobs in Canada, nearly a third of those paying more than $85,000 annuallyi. Yet, adoption remains low, with just over 6 per cent of businesses reporting using AIii, and only 31 per cent of Canadians expressing trust in Generative AI technologiesiii. This Ontario Chamber of Commerce (OCC) policy primer explores how AI can drive Ontario’s economic growth, spotlighting key barriers limiting adoption among small and medium-sized enterprises (SMEs) and highlighting targeted, scalable strategies to build AI fluency, foster cross-sector collaboration, and ensure responsible, inclusive adoption across Ontario’s economy.
AI: An Economic Enabler in Canada
Generative AI (Gen AI) is emerging as the next general-purpose technology, with the potential to generate between USD $2.6 and $4.4 trillion in global valueiv. It will save businesses time, streamline operations, improve productivity, and support workers by reducing manual and repetitive tasks acrossv
In Canada, Gen AI could add $187 billion annually to the economy by 2030 – $100 billion from SMEs alone, including $70 billion from small businesses and $30 billion from medium-sized firmsvi. To fully realize AI’s potential, Ontario must close the gap between innovation and adoption. This means equipping the workforce, enabling SMEs, and creating the conditions for inclusive and sustainable AI growth.
AI as a Productivity Solution
Canada is no stranger to lagging productivity rates, with labour productivity declining in nine of the last 10 quartersvii, the lowest in the OECDviii. Businesses are aware of the impacts low productivity has on innovation, growth, and competitiveness. AI can be a productivity multiplier, potentially increasing Canada’s real GDP by as much as five to eight per cent over the next decade, implying a 0.5 per cent – 0.7 per cent lift to annual-productivityix. This could help offset headwinds from an aging population, shifts in immigration demographics, international trade barriers, and a changing economic climate.
AI technology offers an important solution to the productivity crisis. For SMEs, it streamlines administrative work, improves marketing, scales operations, and strengthens supply chains, among other new business value generated (Figure 1), critical to unlocking potential and bolstering competitivenessx.
*Figure 1: Perceived business value created by Gen AI in 2024 % of businesses that affirmed they are “already using” or “plan to use” Gen AI, by industry
Source: Business Data Lab. “Prompting Productivity: Generative
https://businessdatalab.ca/wp-content/uploads/2024/05/Prompting_Productivity_Report_May30_2024.pdf.
*Figure 1 illustrates the percentage of businesses already using or intending to adopt Gen
Insurance, and Information and Cultural industries are leading in adoption, particularly
tasks, and enhance client experiences. The figure underscores the growing recognition of AI as a
making, and address workforce challenges across the Canadian economy.
Ontario has shown resilience and competitiveness in its expanding tech corridors, with year-overyear (YOY) growth in AI jobs, research, and venture capital (VC) investment (Figure 2). In 2022-23, 46 new AI companies were founded in Canada, with over half based in Ontarioxi, fueling growth in the province’s AI ecosystem.
22,458
273
Source: Vector Institute. (2022b). Ontario AI snapshot - The state of the Province’s AI Ecosystem in 2021-22.
AI Skilling for Ontario SMEs:
Navigating Pitfalls, Unlocking
Potential SMEs are critical drivers of innovation, job creation, competitiveness, and investment in Ontario. With nearly 453,749 SMEs in Ontario, they make up 99.7 per cent of all businesses operating in the provincexii. Yet, these businesses struggle to adopt AI and other emerging technologies. AI literacy remains a key barrier for SMEs, who often lack the time, trust, and technical expertise to adopt new technologies.
According to the OCC’s 2025 Ontario Economic Report, businesses reported a lack of clear strategic direction (31 per cent) and limited capacity or time (27 per cent)xiii as barriers to adoption. Other challenges include accessing external financing to support AI implementation (28 per cent), limited financial resources to invest in new technologies (33 per cent)xiv, cybersecurity gaps, job displacement fears, and ethical concerns, all of which compound the issue.
Enabling AI adoption at scale will require a consistent vision and targeted support for workforce training to bridge technology literacy gaps. This includes expanding AI prompting and data governance education, aligning technology with the specific needs of a business, and developing responsible and ethical workforce transition strategies to support sustainable adoption.
Leading by Example: AI’s Role in Government
The Ontario government has demonstrated progress in public sector AI adoption by incorporating productivity tools such as Microsoft Copilot. In 2025, the Province established the Responsible Use of Artificial Intelligence Directive, aimed at setting the requirements for the transparent, responsible and accountable use of AIxv.
However, other jurisdictions have moved faster. For example, since 2020, the City of Kelowna has implemented AI-powered chatbots to enhance customer service and automated permit processing to improve efficiency. In Ontario, the City of Burlington launched CoBy, an AI-powered chatbot that handles resident inquiries. Since its deployment, the average building permit approval time has dropped by 33%, from 15 weeks to just 5–7 weeks. When government leads in developing a policy framework for AI integration and adoption, it sets a powerful example, reducing risk aversion among SMEs and encouraging broader adoption and skilling.
To be a leader in AI adoption and innovation, Ontario must have a clear policy roadmap for implementation, leveraging digital tools to efficiently and effectively deliver government services.
Powering an AI-Ready Workforce
Addressing these barriers requires more than technical solutions; it demands a human-centric approach, not letting technology lead the organization, but enabling organizations to lead with human capabilities alongside technological implementationxvi. This includes ensuring that government, industry, and academia collaborate to scale AI fluency and build a future-ready workforce. Ontario must prepare both current workers and future workers with the tools and financial support needed to integrate AI responsibly into their operations. Meeting businesses and workers where they are, with practical tools and shared language, can accelerate adoption and position Ontario businesses for long-term growth.
At the Greenhouse Technology Network (GTN), we connect post-secondary institutions, researchers, and industry to help Ontario’s greenhouse SMEs accelerate innovation, adopt advanced technologies, and bring solutions to market. AI holds great promise— from automating tasks to improving forecasting—but adoption remains limited by cost, infrastructure, and skills gaps. To unlock AI’s full potential in agri-food, we must invest in people as much as platforms—through sustained funding, targeted training, and cross-sector collaboration that equips growers with the tools and workforce they need to thrive.
– Rita Sterne, PhD (Mgmt), Project Manager, Greenhouse Technology Network
Canada is already home to a globally recognized AI ecosystem, with leading research hubs such as Mila, the Vector Institute, and Amii, attracting nearly US $11 billion in private investment – the fifth highest worldwidexvii. Ontario, with over $1 billion invested in AI R&D (e.g., AI-driven wildfire resource management, AI manufacturing technologies for battery and electric vehicles, etc.), leads in innovation, supported by world-class institutions including 23 public universities, 24 colleges, and nine Indigenous Institutes. At the Vector Institute alone, over 1,000 AI master’s graduates (92 per cent of whom remain in Ontarioxviii) are helping fuel the province’s growing talent pipeline.
To meet future labour market demands, Ontario must prepare its workforce with AI-related skills such as machine learning (ML), deep learning, AI ethics, and governancexix, in addition to generative AI training. This means post-secondary institutions and training providers have an opportunity to adopt agile, industry-aligned approaches, and embed AI content into curricula. For SMEs, AI fluency should begin with low-risk and tailored resources, such as supporting HR (assisted tasks), accounting (automation), and marketing (AI-driven analytics), paired with key soft skills training such as leadership, critical thinking, and problem-solvingxx, to address skills gaps.
Spotlight
JADA - The AI Assistant Expanding Job Opportunities for University of Waterloo Students
The University of Waterloo, in collaboration with Microsoft, has launched JADA (Job Aggregator Digital Assistant). This AI-powered tool expands access to job opportunities for students by streamlining job searches alongside real-time support. This initiative builds on the University’s commitment to workforce development, following the success of the Waterloo Experience Accelerate (WE Accelerate) Program. Introduced during the pandemic, WE Accelerate has equipped over 1,600 students with AI, cloud computing, cybersecurity, and data analytics skills – key areas shaping the future of work in Ontario. JADA represents the next step in the University of Waterloo’s efforts to prepare students for an evolving job market.
AI in Motion: Use Cases in Ontario
AI and a skilled workforce are driving efficiencies and improved outcomes across various industries in Ontario. In Aurora, Magna International, a manufacturing company, reduced maintenance costs by 35 per cent and achieved a 287 per cent return on investment within 18 months by implementing AI predictive systems across production linesxxi. This helped Magna adopt improved forecasting solutions, better predict demand, and more effectively mitigate supply chain disruptions.
Agri-food SMEs such as Picketa Systems, Upside Robotics, and IntelliCulture, members of the AgRobotics Working Group, are using AI, ML, and automation to enhance field crop operations, from real-time pest detection and tissue sampling to automating manual tasks with rovers, saving farmers time and money.
In healthcare, AI is projected to save CA $14 billion to CA $26 billion per year, increasing patient access, reducing wait times, and supporting greater quality of care. Healthcare technology company Swift Medical is using AI and advanced wound-care expertise from clinicians, resulting in
a reduction of wound-related hospitalizations by more than 14 per cent, wound-related emergency visits by seven per cent, and length of stay by 62 per centxxii
A competitive investment environment and targeted skilling initiatives will empower SMEs to adopt AI and scale innovation through upskilling their workforce. Ontario can strengthen its AI ecosystem by expanding access to capital and talent, ensuring sustained economic growth and global competitiveness.
A Call to Action: Ready, Set, Innovate
To drive economic growth and global competitiveness, Ontario must accelerate AI adoption by fostering innovation in the public sector, equipping SMEs with the right tools, and building a collaborative, cross-sector ecosystem for AI skilling.
Lead by example
Government adoption of AI builds trust and momentum. When SMEs witness responsible and effective AI use within the public sector, they are more likely to follow. Ontario must move swiftly to develop and implement inclusive AI policies that reflect the needs of both communities and businesses.
All hands-on-tech
AI adoption is not a solo act. Government, academia, and industry must partner to scale AI fluency, to drive productivity, scale innovation, and ensure businesses of all sizes can benefit from emerging technologies.
Start small, win big
You would never run a marathon without training. The workforce of tomorrow requires continuous reskilling and upskilling that is low-risk, high-reward, and targeted for specific and practical business needs.
Smart incentives, smarter businesses
Ontario must take inspiration and learning from global leaders such as Singapore’s Go Digital Programme to empower SMEs with the resources to integrate AI into their operations.
From sandbox to spotlight
Ontario has the talent and the innovation ecosystem to lead. By scaling what is already working, the province can move from experimentation to global leadership, empowering businesses and workers to build long-term business strategies in the AI economy.
Conclusion
AI technology is all around us – from virtual assistants for small businesses to digital food delivery platforms. For Ontario, the path is clear: invest in its growing AI ecosystem, foster innovation across sectors, and prioritize inclusive, accessible, and affordable adoption and skilling for both larger enterprises and SMEs. By taking decisive action now, Ontario can lead on the global stage, drive sustainable economic growth, enhance competitiveness, and build a future-ready economy.
Endnotes
i Vector Institute. Ontario AI snapshot - The state of the Province’s AI Ecosystem in 2021-22, 2022. https://vectorinstitute.ai/wp-content/ uploads/2022/11/ontarioaisnapshot_2021-22_final-1.pdf
ii Bryan, Valerie, Shivani Sood, and Chris Johnston. Analysis on Expected Use of Artificial Intelligence by Businesses in Canada, Third Quarter of 2024. Government of Canada, September 12, 2024. https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2024013-eng.htm
iii Microsoft. Canada’s Generative AI Opportunity, 2024. https://www.microsoft.com/en-us/industry/microsoft-in-business/wp-content/uploads/ sites/28/2024/06/Canadas-Generative-AI-Opportunity-White-Paper-FINAL-English.pdf
iv Chui, Michael, Eric Hazan, Roger Roberts, Alex Singla, Kate Smaje, Alex Sukharevsky, Lareina Yee, and Rodney Zemmel. The Economic Potential of Generative AI: The Next Productivity Frontier. McKinsey & Company, June 14, 2023. https://www.mckinsey.com/capabilities/mckinsey-digital/ourinsights/the-economic-potential-of-generative-ai-the-next-productivity-frontier#introduction
v Microsoft. BCI Empowers Employees with Microsoft 365 Copilot, Realizing 10%-20% Productivity Boost. Microsoft Customer Stories, March 12, 2024. https://www.microsoft.com/en/customers/story/18816-british-columbia-investment-management-corporation-microsoft-365-copilot?msockid =3352eb6ea26368bc2806f8dea3c96959
vi Microsoft. Canada’s Generative AI Opportunity, 2024. https://www.microsoft.com/en-us/industry/microsoft-in-business/wp-content/uploads/ sites/28/2024/06/Canadas-Generative-AI-Opportunity-White-Paper-FINAL-English.pdf
vii Statistics Canada. (2024, December 4). Productivity declines again after two quarters of slight decline. https://www150.statcan.gc.ca/n1/dailyquotidien/241204/cg-c001-eng.htm
viii OECD. OECD Global Forum on Productivity, October 15, 2024. https://www.oecd.org/content/dam/oecd/en/about/programmes/global-forumon-productivity/events/paris-2024/ppts/Session_2_3_Jonathan_BARR_Canada_ISED.pdf
ix Billy-Ochieng, R., Garcia, D., & Arif, A. (2024, May 28). Artificial Intelligence Technologies Can Help Address Canada’s Productivity Slump. TD Canada Trust. https://economics.td.com/ca-AI-tech-can-help-productivity-slump?
x Nicholson, Peter. Industrial Revolutionary - How Artificial Intelligence Will Fuel Canadian Productivity and Prosperity. Public Policy Forum, December 11, 2024. https://ppforum.ca/publications/industrial-revolutionary-ai-productivity-prosperity/.
xi Deloitte. Impact and opportunities: Canada’s AI ecosystem - 2023, 2023. https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/pressreleases/ca-national-ai-report-2023-aoda-en.pdf
xii Innovation, Science and Economic Development Canada. Key Small Business Statistics 2023, November 21, 2024. https://ised-isde.canada.ca/site/ sme-research-statistics/en/key-small-business-statistics/key-small-business-statistics-2023
xiii Ontario Chamber of Commerce. 2025 Ontario Economic Report , February 13, 2025. https://occ.ca/interactive-oer2025/
xiv Business Data Lab. “Prompting Productivity: Generative AI Adoption by Canadian Businesses.” Canadian Chamber of Commerce, May 2024. http:// businessdatalab.ca/wp-content/uploads/2024/05/Prompting_Productivity_Report_May_2024.pdf.
xv Government of Ontario. (2025, April 14). Responsible use of artificial intelligence directive. https://www.ontario.ca/page/responsible-use-artificialintelligence-directive
xvi Durth, S., Lavoie, J., Maor, D., & Roth, A. (2025, February 10). Take a human-centric approach to avoid AI’s leadership traps. McKinsey & Company. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-organization-blog/take-a-human-centric-approachto-avoid-ais-leadership-traps
xvii Stanford Institute for Human-Centered AI. Artificial Intelligence Index Report 2024, 2024. https://hai-production.s3.amazonaws.com/files/hai_aiindex-report-2024-smaller2.pdf
xviii Vector Institute. 2021–2022 - Annual Report, 2022. https://vectorinstitute.ai/wp-content/uploads/2022/08/vector-institute-2021-22-annual-report_ accessible.pdf
xix Information and Communications Technology Council (ICTC). Canada’s Ai Ecosystem: A brief overview of in-demand skills and Trends, April 7, 2025. https://ictc-ctic.ca/reports/canadas-ai-ecosystem-a-brief-overview-of-indemand-skills-and-trends#section-report
xx The Dais. Right Brain, Left Brain, AI Brain. Toronto Metropolitan University, January 2025. https://dais.ca/wp-content/uploads/2025/01/Right-BrainLeft-Brain-AI-Brain.pdf
xxi Business and Industry Canada. 7 game-changing AI applications revolutionizing Canadian Manufacturing Today, January 2, 2025. https://www. industryandbusiness.ca/7-game-changing-ai-applications-revolutionizing-canadian-manufacturing-today/ xxii Swift Medical. Zebra Influencer series: Swift Medical improves outcomes with Digital Wound Care Management, June 13, 2023. https:// swiftmedical.com/zebra-influencer-series/#:~:text=Improving%20efficiency%20and%20clinical%20mobility%20with%20digital,time%20 and%20stress%20and%20reduce%20staff%20burnout.&text=But%2C%20by%20contrast%2C%20the%20partnership%20between%20 Swift,decision%2Dmaking%20that%20alleviates%20all%20those%20legacy%20issues
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