Ai and Productivity

I recently attended an insightful business breakfast event where an TD economist presented the economic outlook for 2025. While the discussion covered various topics, one observation struck me: in all the talk about productivity trends, there was a conspicuous absence of AI from the conversation.

Here's why this matters.

For the past 15-20 years, productivity has followed a relatively predictable pattern. As several attendees noted, we've seen steady but incremental changes, with some regions experiencing growth and others facing occasional declines. It's been a metric that both government officials and small business owners have tracked with keen interest.

But we're standing on the precipice of a transformation.

The productivity metrics we've relied on for decades are about to undergo a fundamental shift, driven by one key factor: Artificial Intelligence. While today's economic forecasts might still follow traditional patterns, I believe we're about to witness an unprecedented acceleration.

Consider this: The technological advancement we previously saw over a decade might now be compressed into just two years. In practical terms, the next three years could bring changes equivalent to what we might have expected over 15 years in the past.

This isn't just another technological upgrade – it's a paradigm shift.

For businesses, the implications are clear:

• AI integration can't be an afterthought – it needs to be core to operations and decision-making
• Whether you're a startup or an established enterprise, upskilling your team in AI capabilities should be a top-level priority
• The traditional productivity metrics we've used will need to be redefined for the AI era

The most striking realization from the discussion was this: while we've historically measured productivity through conventional metrics, we're about to enter an era where these measurements will mean something completely different. As AI matures and achieves widespread adoption across global economies, we'll need to develop new frameworks for understanding and measuring productivity.

The question isn't whether this transformation will happen – it's whether businesses will be ready when it does.

What steps is your organization taking to prepare for this AI-driven productivity revolution?