AI: The productivity revolution we cannot opt out of

The conversation around artificial intelligence often falls into a binary: advocates frame it as the most powerful engine of growth in a century, while critics warn of job losses, social upheaval, and risks we can’t yet measure. But framing the issue as a choice between gains and drawbacks misses the point. AI is advancing on a scale and at a pace that make opting out impossible.  

As Dan Debow, serial entrepreneur and investor, recently observed during a CIBC panel, “the change that we’re going to get through a widespread adoption of AI tools is actually going to be even more profound on the nature of the economy, on how people do work, on where value’s created.” The real question is not whether to embrace it, but how quickly companies, investors, and economies can adapt to a world where AI is embedded into every process. 

No neutral ground – productivity is the only lens that matters

This technology is advancing because the world’s largest economies and corporations are pouring extraordinary sums of capital, talent, and computing power into its development. That global momentum cannot be slowed by the reluctance of any single firm or jurisdiction. In this environment, hesitation is not neutral — it is a decision to fall behind. 

Businesses that delay adoption will face competitors who operate faster, cheaper, and at greater scale. The dividing line will be stark: those that integrate AI into their operations will set the pace of the economy ahead, while those that remain cautious will gradually be pushed aside. 

• Adopting AI: Driving growth and innovation for SMEs

Because adoption is inevitable, the focus must shift from speculation to measurement. AI’s true significance lies not in its novelty but in its ability to deliver measurable productivity gains. Mark Shulgan, Co-founder of Intrepid Growth Partners, explained that, “in every investment that we make, we want to very clearly define what is the return that you’re getting from AI. And that’s simply, what did the process look like before and what does it look like after.”  

Organizations must approach it with the same financial discipline they apply to capital investments: define the process as it stands today, redesign it with AI at the core, and calculate the net improvement. This approach ensures that AI is not just layered onto existing workflows, but used to fundamentally reimagine them. In industries as diverse as banking, logistics, and health care, the technology is already being embedded into end-to-end processes. When deployed this way, it is not an efficiency booster at the margins but a structural redesign of how work gets done. 

At a macro level, this matters because demographic realities are pressing down on growth. As Mark Shulgan further noted, “a lot of the economic growth that has been driven over the last few decades has been as a result of population change. Now, there’s a very huge impact on the economy by a smaller workforce or a slower growing workforce. And these tools are what we need to enhance productivity and ultimately drive more economic growth.” 

Capital flows show the direction of travel

Markets have already delivered their verdict. Hundreds of billions of dollars have been committed to building the infrastructure, data centres, and core models that underpin AI. Venture investment is surging, with funding levels in the past year dwarfing most other categories of technology. The shift is already moving downstream: while initial dollars flowed into the companies building the underlying models, investors are now chasing firms that apply AI to concrete business problems. 

Growth trajectories are striking. Young companies are scaling revenues at speeds once thought impossible. In Canada and globally, firms that successfully build around AI are reaching milestones in a fraction of the time it once took. These valuations and growth curves are not speculative bubbles; they reflect the depth of demand for real productivity-enhancing solutions. 

Culture determines adoption

With all this said, capital and technology alone are not enough. The decisive factor inside organizations is culture. AI is now accessible in a way past technologies were not; interacting with it requires little more than natural language. That accessibility removes excuses for leadership detachment. Executives who do not experiment with the tools themselves will struggle to understand their potential or set credible direction for their teams. 

• Envisioning a client-focused, AI-enabled bank

Equally critical is building an environment that encourages experimentation at all levels of the organization. Fostering a culture of innovation, Debow pointed out, requires that “you have to create a safe environment where people can tinker… Breakthroughs often come not from centrally managed projects but from individuals and teams willing to test and refine new approaches.” Organizations that create space for this grassroots innovation will accelerate adoption far faster than those that restrict usage to carefully controlled pilots.  

Shaping the workforce of the future

As AI becomes a fixture of daily work, fluency in its use will be as essential as spreadsheet literacy became in the last generation. Success will depend on skills that combine technical curiosity with strong management. In that sense, working effectively with AI systems will require similar qualities as managing junior staff: the ability to give clear direction, provide context, and refine outputs over time. Leaders who struggle with these fundamentals will get weak results; those who excel will amplify their teams’ productivity without multiplying headcount. 

At the same time, AI is lowering barriers to entrepreneurship. The ability to move from idea to prototype to product has never been easier. This dynamic will not only accelerate innovation within firms but also generate entirely new industries. History shows that human demand constantly expands into new areas once capacity is freed. The same will be true in this era. 

The question of speed

Reducing AI to a ledger of positives and negatives obscures the only variable that truly matters: speed. The technology is advancing no matter what. The organizations that adapt quickly — embedding AI into their processes, measuring its returns, and encouraging cultural adoption — will capture the gains. Those that hesitate will see their relevance diminish. 

AI is not a passing cycle or a tool to be deployed selectively at the margins. It is the infrastructure of the next economy. Its spread is guaranteed by global investment, competitive pressure, and its own demonstrable utility. 

For business leaders, investors, and policymakers, the imperative is clear: treat AI as a core strategic priority. Measure its returns rigorously, redesign processes around it, and build cultures that see it as a partner in growth rather than a threat to stability. 

The productivity revolution has already begun. The only choice left is whether to ride the wave — or to be overtaken by it. 

This article contains ideas futured in a recent CIBC Thought Leadership panel discussion. For the full video content, visit our website.