The time is now: Capitalizing on the AI revolution

As we stand at the cusp of potentially the most transformative era in recent history, navigating through an interconnected world characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), it's crucial to address the interplay of significant global disruptions shaping our world.

Earlier this summer, I had the opportunity to dive deep into these topics at Deloitte Connect, our flagship Ecosystems and Alliances event, that brought together industry leaders, alliance partners, visionaries, and change-makers to explore how our ecosystems can play a vital role in closing the nation’s productivity gap, discussing how the disruptions are not just redefining our business landscape but also presenting unique opportunities for Canada to enhance productivity and innovation.

The four global disruptions impacting Canada

At the conference, I outlined four significant global disruptions that businesses and leaders must strategize around to secure a prosperous future:

1.???? Talent Transformation: With an aging workforce, a noticeable skills gap, and changing worker preferences, the world of work has transformed dramatically. About 74% of organizations that we surveyed report challenges in hiring employees with the right skills. An innovative, resilient, and dynamic approach to workforce development is required to address Canada’s persistently lagging productivity.

2.???? AI Revolution: Advancements in AI, including Gen AI have been linked to past industrial revolutions, yet they are uniquely disruptive and offer opportunities for economic growth and productivity gains. The rise of companies like NVIDIA, now a titan in the industry post-ChatGPT, exemplifies the seismic shifts in economic landscapes driven by AI advancements. Despite this, more than half (56%) of the organizations we surveyed don’t use AI and aren’t in the process of adopting it.

3.???? Geopolitical Uncertainty: Ongoing global conflicts and tensions expose our economies to new risks, particularly in supply chains and trade, impacting 64% of Canadian organizations surveyed last year. It's imperative to devise strategies that not only mitigate these risks but also turn them into opportunities for stronger, more diverse economic relationships.

4.???? Race to Net-Zero: As the effects of climate change become more apparent, the push towards sustainability is critical. Surprisingly, 65% of Canadian organizations lack a clear target for achieving net-zero emissions, representing not just a challenge but a call to action for leadership in environmental transformation.

The productivity imperative and AI's role

During the conference, it became clear that the relationship between productivity and the AI revolution underway is important to explore.

In Canada, we pride ourselves on being early adopters, being the first country to establish a national AI strategy back in 2017, having a thriving talent pool of AI that’s growing at 38% rate globally, and the largest pool of women focused AI leaders in the world, in addition to 10% of the world’s AI researchers, and being number one in the number of patents we’re releasing per capita[i]. Yet, our productivity growth lags at a mere 0.9% over the past decade—a clarion call that the AI revolution could not have arrived at a more critical time.

The AI revolution is not just about technological adoption but is a pivotal ally in our battle against stagnating productivity. The introduction of Generative AI (GenAI) comes at a critical time, offering potential solutions that could redefine the workplace and operational efficiency. According to Microsoft[ii], their research indicates a significant ROI - $3.50 return for every dollar invested. This immense potential can boost productivity and efficiency across industries, from enhancing customer interactions to streamlining front-end and back-office operations. With the right strategies in place, this can lift Canada’s productivity to 6% by 2030.

In order to capture the value, we need to be able to scale the deployment of GenAI solutions. However, scaling AI solutions requires building trust within the workforce and ensuring that AI tools are reliable and devoid of inherent biases. This approach will not only foster acceptance but also enhance the symbiotic relationship between human workers and AI systems, leading to more innovative and efficient workflows.

Strategic imperatives for leveraging GenAI

To capitalize on GenAI, organizations must focus on scaling their initiatives, building trust, and evolving the workforce. We must not only scale up but also scale deep, ensuring our strategies are comprehensive, from technology stacks to ecosystem partnerships. By leveraging the Generative AI capabilities offered by technology vendors, organizations can access specialized expertise, advanced technologies, and scalable infrastructure that may not be feasible to develop in-house. This collaboration enables faster deployment, customization, and innovation, helping organizations stay competitive while reducing costs, minimizing risks, and ensuring compliance with industry standards.

Moreover, with impending AI regulations, establishing robust governance frameworks from the outset will be crucial to innovate with confidence.

As we harness the power of AI, it’s crucial to ensure our workforce is equipped to handle new technologies. This means investing in education and training programs that focus on digital skills and AI literacy. Additionally, fostering a workplace culture that embraces change and innovation will be key to our success in the AI-driven world. Trust, a pivotal factor, hinges on transparent communication about AI's role in job augmentation versus elimination.

Forward together

As we navigate these disruptive forces, our strategies must evolve. It's about scaling intelligently and responsibly, establishing robust partnerships across the AI stack, and being proactive in managing risks through effective regulatory frameworks and ethical guidelines.

The time to act is now. We are equipped with a robust AI infrastructure, a highly educated workforce, and abundant natural resources. What we need is the courage and the strategic foresight to capitalize on these global disruptions. Let us forge ahead, not as passive observers but as active architects of our collective future.

Delve into the "Global Disruptions in 4D" report and join us in this critical conversation.

[i] Can Canada Compute? (dais.ca)

[ii] The Business Opportunity of AI (microsoft.com)