Canada’s productivity problem, the global AI race, and can Taylor Swift and Beyonce save companies from a streaming world?

Hello, and welcome back to Business Cycle – a look at what The Globe and Mail’s business columnists are talking about this week. In this edition, we take a look at Canada’s major productivity problem, why the country is "squandering" its leadership in artificial intelligence and how Taylor Swift and Beyonce are helping to save Canada’s largest theatre chain.?

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Canadians log more hours than other countries but the workforce is less productive. What gives?

By Claude Lavoie

Canadians work more hours than many in other advanced economies, but the workforce is less productive. Why are we lagging in productivity and economic growth? Claude Lavoie writes it’s because our companies invest less in technology and have less efficient business practices – but also because some easy solutions are politically difficult.

“Analyses suggest that the key factors behind our poor productivity include a weaker competition environment and lower entrepreneurship skills. Competition increases productivity by driving low-productivity companies out of the market and encouraging entrepreneurs to pull out their “A” game. Canada needs to become feistier. However, our competition framework leaves a lot to be desired.”

Read the full opinion piece here.?

Canada is a leader in AI, but we are in danger of squandering our lead

By Erin O'Toole

Canada is considered a leader in AI. For example, Canadian professors such as Geoffrey Hinton, Yoshua Bengio and Richard Sutton are considered AI pioneers, and clusters of innovation have sprung up around them on campuses in Toronto, Montreal and Edmonton.?But, as Erin O'Toole writes, we must do more to help the sector grow, especially as Britain and the United States double down with their own investments.

“A few years ago, I debated Prime Minister Justin Trudeau about his claim that Canada needed to show some “swagger” on the world stage. Boy, would I like to see some swagger on AI at this critical time. There are two ways we can get there.”

Read the full opinion piece here.?

Where does Cineplex fit in a streaming world?

By Andrew Willis

Can Taylor Swift and Beyonce save the country’s largest theatre chain? Cineplex posted record revenues this summer with the release of Barbie, Oppenheimer and the latest instalment of Mission: Impossible. Taylor Swift and Beyonce also kept crowds coming with the releases of their concert films, The Eras Tour and Renaissance.

But Andrew Willis writes that the company has faced strategic headwinds this year, losing the battle for audience to streaming services such as Netflix , Prime Video & Amazon MGM Studios and Disney+. What’s next for the company as it returns to its roots as a theatre chain??

“While the Eras and Renaissance releases worked to Cineplex’s advantage, the company still faces an existential challenge from the sector’s biggest trend, as audiences continue to shift to streaming. Yesterday’s dominant media platforms are starting to look like dinosaurs.”

Read the full opinion piece here.?

More business columns we’re following this week:?

• Amid the climate crisis, Canada must do more to help developing economies
• Canada must stem the surge in temporary foreign workers and international students
• CEBA loan repayment deadline approaching, may threaten some businesses but not economy overall

The Globe's business opinion pieces are commissioned and edited by Ethan Lou. If you would like to write in this section, please send pitches to [email protected].?

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