Sept. 24, 2025 "AI adoption could boost Canada’s GDP to $3.65 trillion by 2035, PwC study estimates": Today I found this article by Ritika Dubey on BNN Bloomberg:
Canada’s economy could grow exponentially by 2035 if
businesses fast-track their artificial intelligence adoption
and respond to growing climate change threats,
a new study predicts.
A PwC Canada report exploring ways to unlock economic growth forecasts that
with swift action to close the AI adoption gap,
Canada’s GDP could reach as much as $3.65 trillion by the end of the next decade.
The report, released Wednesday, lists 2023 Canadian GDP at $2.89 trillion.
The report outlined three growth scenarios, each based on how fast key industries adapt to
technological advancement,
climate change,
geopolitical tensions
and demographic shifts,
which are increasingly blurring traditional sector boundaries.
The degree to which geopolitical turmoil subsides
or escalates
is a significant factor in these estimates,
as is Canada’s ability to adopt artificial intelligence across industries such as
mining,
technology
and defence,
which are increasingly seen as political priorities.
The premise of its most optimistic scenario, where Canada’s GDP jumps 9.3 per cent over baseline expectations for 2035,
hinges on a co-operative global approach for AI adoption
and public trust in cybersecurity.
Nochane Rousseau, national managing partner at PwC Canada,
said he is “confident that the most optimistic scenario is credible,”
but that so far, there’s a lag in AI adoption in Canada.
“Considering the economic condition that we have in Canada
and the uncertainty also related to the tariffs,
some companies are not making the required investment,”
Rousseau said in an interview.
AI uptake in Canada is about three-quarters of U.S. adoption, the report, which reviewed survey data, found.
In the middle scenario,
where global decarbonization efforts fall short of sustainability goals
and AI adoption lags,
the report projects a 6.9 per cent GDP boost over the expected baseline,
or $3.57 trillion.
The least optimistic forecast, which assumes
geopolitical tensions hinder global efforts to collaborate
and mistrust in technology slows its use,
pegs GDP growth at 2.1 per cent above baseline,
or $3.41 trillion.
Rousseau said there’s an opportunity for Canada to bridge its AI adoption gap.
Narrowing that gap will require
investments
and government support,
the report suggested.
Companies would need to devote more resources
to research and development,
and consider new approaches to scaling innovation,
it added.
“You may remember that Canada was one of the initial players in AI,” Rousseau said.
“The challenge for us is the commercialization of those technologies.”
Even if Canada’s economy realizes the most optimistic scenario,
it would lag behind the U.S.,
which is expected to see a bigger boost of a potential 14 per cent over its expected baseline in the next decade.
“When we compare both results between Canada and the U.S.,
it is explained mostly by a much lower AI adoption by Canadian companies in Canada,”
Rousseau said.
Rousseau said there’s an opportunity for the country to grow
if different sectors work together
alongside supportive government policies.
As Canada adjusts to new trade realities,
the report estimates businesses would be left with limited resources to
reconfigure
and adjust
to ongoing changes with
climate change
and tech.
Corporations will have to
collaborate across industries
and likely pivot to serve adjacent markets
or compete in completely new sectors
— similar to the paths larger companies have taken,
such as by moving into the nuclear energy space
to bridge electricity needs
for their data centres,
the report suggested.
For example, food production
and consumption
face pressures not just from
climate change
but also urbanization
and shifts in consumer preferences.
The report suggests the mining industry
could help increase sustainable supplies of
fertilizers, such as potash,
to make shrinking lands more arable.
Overall, the report identified
mining,
technology
and defence
as key sectors among others that
can benefit from
AI adoption
and government policies,
and in turn, boost growth.
Since taking office, Prime Minister Mark Carney has unveiled major spending plans for national defence to help Canada meet the NATO defence spending benchmark of the equivalent of two per cent of GDP per year.
In June, Canada and its NATO allies agreed to substantially hike their defence spending target to five per cent of annual GDP by 2035. The new NATO agreement will see Canada’s annual defence budget increase to roughly $150 billion.
“We have a very critical opportunity to capture the value around the defence opportunity,” said Rousseau.
Earlier this month, business jets maker Bombardier Inc. pivoted its portfolio toward the defence sector,
as its chief executive promised a larger portion of the firm’s total sales would be from Bombardier Defense over the next decade.
The defence sector needs everything from
raw materials,
munitions
and vehicles
to data,
technology
and AI
– and all the related industries can benefit from the demand,
according to the report.
For example,
steel manufacturers facing tariff pressures could supply steel to a Canada-based shipbuilder,
or a Canadian miner could provide materials for magnets and semiconductors used in modern military equipment.
Rousseau said the defence sector also opens up doors for
parts,
equipment
and infrastructure
with dual purpose
– something that can be used for
defence
and civil markets.
Small and medium-sized businesses could also open shop for niche services such as
precision machining
or testing
and certification,
the report suggested.
For mining, Rousseau said Canada has an opportunity to leverage its critical minerals repository
for electric vehicles
and defence.
But tech adoption will be critical for miners,
the report suggested.
Canada’s mining sector could benefit from AI
and quantum computing
to accelerate assessments
and the permitting processes,
which in turn speed up the mining projects.
This would also help
reduce the environmental impact
and resource consumption of mining explorations and other activities,
the report said.
Rousseau said federal government policies are key to Canada’s growth.
For example, the government could establish a procurement policy that prioritizes buying goods and services from Canadian AI companies.
That means governments will need to set up policies that
enable innovation,
attract skilled workers
and help instill trust in AI among businesses.
“Adoption is inseparable from trust and security,
which heightens the imperative for governments to work closely with businesses to build confidence in what AI can do,”
the report said.
This report by The Canadian Press was first published Sept. 24, 2025.
Ritika Dubey, The Canadian Press
Oct. 29, 2025 "Caterpillar beats estimates as AI boom drives energy equipment demand": Today I found this article on BNN Bloomberg:
Caterpillar topped third-quarter profit and revenue estimates on Wednesday
as a boom in AI technologies drove
demand for its energy equipment,
sending its shares up about four per cent before the bell.
The industrial equipment maker’s energy and transportation unit
has fueled much of the company’s growth in recent quarters
as AI-driven investments in power-hungry data centers
have boosted demand for its power-generation systems.
U.S. President Donald Trump’s focus on energy projects has further aided the segment.
The unit, which also makes mining equipment such as excavators and giant shovels,
contributes 40 per cent to Caterpillar’s overall revenue.
The company’s energy and transportation unit posted a 17 per cent rise in third-quarter sales to about US$7.2 billion.
Industrial machinery makers, such as Caterpillar, are now grappling with
higher costs from Trump’s expansive tariffs on imports,
while weak demand
and elevated interest rates
limit their ability to pass on the burden to customers.
The company now expects its annual tariff costs between $1.6 billion and $1.75 billion,
compared with its prior expectation of $1.5 billion to $1.8 billion.
During the second quarter, companies across the globe flagged a combined annual financial hit between $16.2 billion and $17.9 billion and nearly $15 billion for 2026,
according to a Reuters tariff tracker.
The company, seen as a bellwether for the global industrial economy, reported quarterly revenue of $17.6 billion, beating Wall Street’s expectation of $16.77 billion, according to data compiled by LSEG.
Its mainstay construction segment posted a 7% rise in revenue to $6.76 billion, helped by price hikes.
The company reported a quarterly adjusted per share profit of $4.95, topping the average estimate of $4.52.
(Reporting by Nandan Mandayam and Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli and Saumyadeb Chakrabarty)
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