A new report claims that artificial intelligence could add $760 billion to Canada’s economy over the next decade.
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The report from PwC says that AI adoption could boost Canada’s gross domestic product (GDP) to $3.65 trillion by 2035, up from $2.89 trillion currently. However, the report states that Canada needs to move quickly to adopt new AI technologies and keep pace with other nations, notably the U.S.
The report is potentially good news for Canada’s technology sector and leading Canadian tech stocks such as Shopify (SHOP), BlackBerry (BB), and Constellation Software (CSU). In the most optimistic scenario outlined by PwC, Canada’s GDP would rise 9.3% above baseline expectations for 2035.
Big Investments Needed
The report notes that AI uptake in Canada is currently about three-quarters (75%) of U.S. adoption. Narrowing that gap will require big investments in coming years from both the private sector and governments. Companies need to invest more heavily in research and development (R&D), and find ways to scale innovations within Canada and abroad.
PwC is urging companies to collaborate across industries and compete in entirely new economic sectors, such as adopting nuclear energy to meet data center electricity needs. That said, even if Canada achieves its AI target, its economy is expected to still lag behind the U.S., which is likely to see its GDP expand 14% over the next decade due to AI technologies and adoption, says PwC.
Is SHOP Stock a Buy?
The stock of Shopify has a consensus Moderate Buy rating among 33 Wall Street analysts. That rating is based on 20 Buy and 13 Hold recommendations issued in the last three months. The average SHOP price target of $165.33 implies 9.53% upside from current levels.
