• Province’s AI ecosystem poised to add $122 billion in cumulative real GDP by 2035
• Canada projected to achieve $298 billion in AI-driven economic growth and 41,500 new jobs annually over the next decade

TORONTO, [November 25, 2025] – Ontario is the engine of Canada’s artificial intelligence (AI) economy. AI-related jobs here in the province contributed between $42 billion and $52 billion over the last five years—nearly half of the estimated $82 billion to $100 billion contributed by AI-related jobs nationally, according to new research from Deloitte Canada commissioned by the Vector Institute. Future adoption of AI is poised to generate an additional $122 billion in cumulative real GDP in Ontario by 2035, and Canada as a whole is projected to achieve $298 billion in AI-driven economic growth.

Building on strong momentum

Ontario’s AI ecosystem has demonstrated significant growth; the number of companies investing in AI has increased by 149% since 2019. This growth has created over 17,000 new AI-related jobs in the past year alone, bringing total AI-related employment to 39,327 positions.

“Eight years ago, Vector set out to help build an AI ecosystem that could compete globally. These results prove that vision is now reality. Ontario has become the AI capital that drives Canada’s success, as Vector continues to bridge the gap between world-class research and the companies that turn AI advancements into economic impact. The foundation is built—now it is time to scale,” said Glenda Crisp, President and CEO, Vector Institute.

Key impact metrics

Ontario’s performance: Between 2019 and 2024, AI-related employment contributed between $42 and $52 billion to Ontario’s real GDP cumulatively, with every AI job generating an average of $199,000 in economic value annually.

Looking ahead to 2025-2035, AI adoption is projected to: 

• Generate $122 billion in cumulative real GDP for Ontario
• Create an average 17,600 new jobs annually in the province
• Increase average real wages by $1,028 for Ontario workers by 2035
• Boost labour productivity by 1.6% by 2035, directly addressing competitiveness challenges

Canada’s national impact: Across Canada, AI-related jobs contributed between $82 and $100 billion to the national economy between 2019-2024 cumulatively, generating an average of $195,000 in economic value per job annually.

Canada’s projected 2025-2035 AI-led growth includes: 

• $298 billion in cumulative real GDP nationally
• 41,500 new jobs annually, on average, across the country
• 1.5% boost in national labour productivity by 2035

“The impact of AI is already apparent; we’re seeing this firsthand through the establishment of numerous AI labs and the economic impact of AI-related jobs. Our analysis shows that continued adoption of AI across the Canadian economy has the potential to drive significant economic growth, enhance labour productivity, and generate net new jobs—growth that would not be achievable without the integration of AI technologies,” said Dawn Desjardins, Chief Economist, Deloitte Canada.

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Investment success story

The research demonstrates remarkable investment leverage at both the provincial and federal levels.

Ontario’s investment performance: 

• The province has attracted $446 million in federal AI–related investment, and most recently for every federal dollar invested, there was $9.53 in private sector investment.
• In fiscal year 2024-25 alone, total private sector AI investment reached $2.6 billion in Ontario.

Canada’s national investment impact: 

• Federal investment of $1.1 billion nationwide was accompanied by an exceptional $10.64 in private sector investment for every public dollar, demonstrating the effectiveness of Canada’s strategic approach to AI development.

Ontario’s regional impact

The report also examines regional impacts of AI adoption, pointing to significant transformation:

The economic benefits of AI adoption between 2025 and 2035 extend across all regions of Ontario:

• Greater Toronto Area: 8,908 new jobs annually, $1,280 real GDP per capita benefit by 2035
• Southwestern Ontario: 3,430 new jobs annually, $1,116 real GDP per capita benefit by 2035
• Eastern Ontario: 2,212 new jobs annually, $1,117 real GDP per capita benefit by 2035
• Northern Ontario: 1,267 new jobs annually, $1,089 real GDP per capita benefit by 2035

“The benefits of AI aren’t confined to downtown Toronto,” said Cameron Schuler, Chief Commercialization Officer and Vice President, Industry Innovation, Vector Institute. “Such benefits can help apply machine learning to optimize supply chains in Southwestern manufacturing, improve resource management in Northern Ontario, and create efficiencies that strengthen businesses in every region. These projections—from over 3,400 new jobs annually in the Southwest to nearly 1,300 in the North—show a province-wide transformation in progress.”

Methodology

The study employed quantitative methods and computable general equilibrium (CGE) modelling, to estimate historical and projected economic impacts. The analysis drew on data from Statistics Canada, government investment records, and industry databases, with future projections based on peer-reviewed research on AI productivity gains and adoption rates.

Historical impacts represent the “gross economic footprint” of AI-related investments and employment, while future projections model “net” economic gains from productivity improvements that would not occur without AI adoption.

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About the Vector Institute: The Vector Institute is an independent, not-for-profit corporation dedicated to advancing artificial intelligence, excelling in machine learning and deep learning. Vector’s vision is to drive excellence and leadership in Canada’s knowledge, creation, and use of AI to foster economic growth and improve the lives of Canadians. The Vector Institute is funded by the Government of Ontario, the Government of Canada and industry sponsors across Canada.

Media Contacts: Vector Institute: media@vectorinstitute.ai