Unlocking Atlantic Canada’s Potential with Artificial Intelligence: A Snapshot from the Atlantic Economic Council

The September 2024 edition of Atlantic Industry Watch shines a spotlight on the growing role of Artificial Intelligence (AI) in Atlantic Canada’s economy. As industries across the globe continue to embrace AI, the Atlantic provinces are no exception. From energy management to creative industries, AI is transforming businesses, driving productivity, and positioning the region to compete in a rapidly advancing technological landscape. AI Adoption: Where We Stand and Where We're Headed AI is no longer an abstract concept limited to tech giants. In fact, many firms in Atlantic Canada are already reaping the benefits. According to the report, these businesses have seen marked improvements in productivity by using AI tools to automate tasks and redeploy resources toward higher-value activities. However, the region still lags behind the national pace of AI adoption, posing a risk to its competitiveness. Governments in Atlantic Canada are called to action, with the report recommending an increased focus on digital infrastructure, skills development, and regulatory frameworks to support widespread AI adoption. Without these changes, the region may find itself trailing behind other jurisdictions in Canada and beyond. Generative AI and Its Applications One of the most fascinating aspects of AI discussed in the report is generative AI (gen AI). Unlike traditional AI models, gen AI systems, such as ChatGPT, have the ability to create content, whether it be written text, visuals, or even software code. These systems stand out from previous innovations by solving complex problems and producing original content. Some industries in Atlantic Canada are already incorporating these advanced tools. Bluedrop Training & Simulation, for example, uses generative AI to enhance its flight, military, and sea scenario simulations. This technology allows Bluedrop to tailor training experiences to individual users based on real-time feedback, making the learning process more efficient and personalized. Similarly, dlb creative, a branding and marketing firm, leverages AI to streamline its creative processes, delivering high-quality products and services more rapidly. The firm’s success with AI has even helped it expand its client base beyond the Atlantic provinces and into the U.S. market. AI Across Key Sectors AI’s impact is being felt across a wide array of industries in Atlantic Canada, from defense to healthcare. The report notes that several Atlantic-based firms are pioneering AI technologies in their fields. For instance, Halifax-based Global Spatial Technology Solutions uses AI to improve safety, security, and efficiency in the maritime and logistics sectors. On the healthcare front, AI is being employed by companies such as NovaResp Technologies and Densitas, which focus on improving medical outcomes and managing healthcare resources more effectively. Additionally, several provincial governments are implementing AI-driven solutions in public services. The City of Halifax, for instance, has launched a pilot program using AI to detect wildfires, while the City of Fredericton is preparing to implement an automated building permit system by 2025. These initiatives showcase the potential of AI to transform not only businesses but also the public sector, driving efficiency and enhancing service delivery. The Economic Impact of AI AI's potential to transform the Atlantic Canadian economy is immense. According to a report from TD, Canada’s GDP could increase by up to 8% over the next decade as a result of AI adoption. While there are concerns about job displacement, the report highlights that AI is more likely to complement existing roles rather than replace them entirely. In fact, 84% of firms that have adopted AI in Atlantic Canada report no change in employment, and for those that did, job gains often outweighed losses. The report also points out that Atlantic Canada, with its rural and urban divide, faces unique challenges in AI adoption. Rural firms have an AI adoption rate of just 2%, compared to 7% for urban firms. However, opportunities abound, especially as governments and businesses work together to break down barriers, such as limited access to skilled workers and financial resources. Looking to the Future: Key Takeaways The September 2024 edition of Atlantic Industry Watch provides valuable insights into the state of AI adoption in Atlantic Canada. While the region has made significant strides, there is still much work to be done. For Atlantic Canada to fully realize the benefits of AI, it must prioritize skills development, invest in digital infrastructure, and implement regulatory frameworks that encourage innovation while managing risks. As businesses continue to integrate AI into their operations, and as public sector initiatives take root, the Atlantic provinces are poised to become leaders in AI-driven innovation. For those interested in learning more, the full report can be downloaded for an in-depth look at how AI is shaping the future of Atlantic Canada’s economy. Download the full publication here to learn more. Information for this blog post sourced from: atlanticeconomiccouncil.ca