The Economic Impact of Public Investment and Growing Adoption of Artificial Intelligence Infographic

Impacts from investments, AI-related jobs and labs in recent years2

  • In the 2024/2025 fiscal year,1 for every $1 of federal government investment, there was $9.53 in private sector investment in Ontario and $10.64 in Canada.
  • From 2019 to 2024, AI-related jobs contributed:
    • Between $42B and $52B to Ontario’s real GDP cumulatively, with every AI job generating, on average, $199,000 in economic value per year.3
    • Between $82B and $100B to Canada’s real GDP cumulatively, with every AI job generating, on average, $195,000 in economic value per year.3
  • On average, over the 2017-2024 period, AI labs contributed:
    • Between 0.10% and 0.13% to Ontario’s real GDP annually (or $7B to $9B cumulatively).3
    • Between 0.08% and 0.10% to Canada’s real GDP annually (or $15B to $18B
      cumulatively).3

Impacts from AI adoption in the next decade (2025-2035) 3,4,5,6

  • Ontario: $122B in real GDP, 17,600 new jobs annually, a $1,028 increase
    in the average real wage, and $14B in government revenue.
  • Canada: $298B in real GDP, 41,500 new jobs annually, a $977 increase
    in the average real wage, and $62B in government revenue.
  • In the health sector:
    • Ontario: $7B in real GDP, 900 new jobs, and $4B in government spending.
    • Canada: $19B in real GDP, 2,080 new jobs, and $11B in government spending.
  • In the education sector:
    • Ontario: $9B in real GDP, 1,060 new jobs, and $2B in government spending.
    • Canada: $21B in real GDP, 2,100 new jobs, and $5B in government spending.
  • Ontario: $1,230 in real GDP per capita and a 1.6% increase in labour productivity in Ontario.
  • Canada: $1,175 in real GDP per capita and a 1.5% increase in labour productivity in Canada.
  • The increase in the real GDP per capita ranges from $1,090 in Northern Ontario to $1,280 in the Greater Toronto Region.
  • The employment growth ranges from 1,270 jobs in Northern Ontario to 8,910 jobs in the Greater Toronto Region.
  1. Fiscal year represents Vector’s fiscal year (April 1, previous year – March 31, next year).
  2. Represents the “gross” economic impact of AI, meaning that the spending and employment generated could have alternatively supported other sectors of the economy.
  3. Real GDP is expressed in constant 2017 prices.
  4. Represents “net” economic gains from AI, that is, the economic growth would not happen in the absence of AI.
  5. The impact on Ontario’s government revenue includes provincial and local government revenues. The impact on Canada’s government revenue includes federal, provincial and municipal government revenues.
  6. Real GDP, government revenue and spending are cumulative totals (2025-2035); new jobs are annual averages (2025-2035), average real wage and real GDP per capita are impacts by 2035.
  7. The study does not represent a full cost benefit analysis or an attribution study.

Note to Reader

The results presented within this document have been provided to the Vector Institute for the purpose of estimating the economic impact of the artificial intelligence technology on Ontario and Canada. The study does not represent a full cost benefit analysis or an attribution study. The results presented in this report are based on current available data and a set of assumptions. The methodology, data, and results underwent a thorough quality assurance process, including internal reviews by subject matter experts and economic leaders within Deloitte Canada. Feedback from these reviews was incorporated to ensure accuracy and reliability. However, there remains a degree of uncertainty due to limited available data such as the number of employees in the AI ecosystem, AI investment by firms, and spending by AI labs. Additionally, the future evolution of AI technologies and their interactions with the workforce remain uncertain. There are associated risks, including potential job displacement and broader impacts on the labour market, which are not captured in the current modelling.

Deloitte LLP (“Deloitte”) does not assume any responsibility or liability for losses incurred by any party as a result of the circulation, publication, reproduction or use of this initial analysis contrary to its intended purpose.

This analysis has been made only for the purpose stated and shall not be used for any other purpose. No party other than the Vector Institute is entitled to rely on this analysis for any purpose whatsoever and Deloitte accepts no responsibility, liability, or duty of care to any party other than the Vector Institute.

The analysis is provided as of October 16, 2025, and we disclaim any undertaking or obligation to advise any person of any change in any fact or matter affecting this analysis, which may come or be brought to our attention after the date hereof. Without limiting the foregoing, in the event that there is any material change in any fact or matter affecting the analyses after the date hereof, we reserve the right to change or modify the analysis but are under no obligation to do so. Observations are made on the basis of economic, industrial, competitive and general business conditions prevailing as at the date hereof. In the analyses, we may have made assumptions with respect to the industry performance, general business, and economic conditions and other matters, many of which are beyond our control, including government and industry regulation.

No opinion, counsel, or interpretation is intended in matters that require legal or other appropriate professional advice. It is assumed that such opinion, counsel, or interpretations have been, or will be, obtained from the appropriate professional sources. To the extent that there are legal issues relating to compliance with applicable laws, regulations, and policies, we assume no responsibility therefore.

We believe that our analyses must be considered as a whole and that selecting portions of the analyses or the factors considered by it, without considering all factors and analyses together, could create a misleading view of the issues related to the report. Amendment of any of the assumptions identified throughout this report could have a material impact on our analysis contained herein. Should any of the major assumptions not be accurate or should any of the information provided to us not be factual or correct, our analyses, as expressed in this report, could be significantly different.