McKinsey analyst predicts Toronto's AI sector to surge as city develops infrastructure, faces challenges in talent retention & growth. (BNN Bloomberg)
Toronto’s artificial intelligence (AI) sector is on the cusp of substantial growth, according to a McKinsey analyst, as the city fortifies its infrastructure to emerge as a prominent global AI center.
In a recent report, McKinsey, a leading business consulting firm, identified Toronto as one of 16 worldwide hubs dedicated to advancing technologies, particularly AI, labeling the city as an appealing destination for tech entrepreneurs.
Federico Berruti, a partner at McKinsey, highlighted Toronto and Canada’s extensive involvement in pioneering various aspects of fundamental AI movements. Speaking on BNN Bloomberg, Berruti pointed out Canada’s allure as a favorable work environment, emphasizing the considerable expansion within this domain, attracting substantial funding from investors. He highlighted the remarkable surge in tech talent over recent years, laying the groundwork for a potential upsurge in the sector's growth.
The AI infrastructure in Toronto has expanded concurrently with the rise in its tech workforce. The Vector Institute, an independent non-profit organization focused on AI research, commenced operations in Toronto in 2017. The institute offers training, facilitates collaborations between private and government entities, and provides support to startups and students.
Just last month, Unilever, a British-Dutch consumer goods giant, selected Toronto as the location for its inaugural global AI lab. Unilever specifically cited Toronto's existing concentration of AI expertise as a pivotal factor in its decision.
However, Berruti acknowledged certain hurdles that must be overcome for AI in Toronto to flourish. He highlighted disparities in compensation within the Canadian tech community, estimating it to be significantly lower, around 40 to 50 percent, than that of counterparts in the United States. This discrepancy, according to Berruti, contributes to a talent drain as investors gravitate toward Silicon Valley for technological advancements.
Moreover, Berruti raised concerns about Canadian tech firms experiencing robust growth but subsequently relocating their operations elsewhere. He stressed the necessity for a collective effort involving governments, businesses, educational institutions, regulatory bodies, and companies to create an environment conducive to fostering the growth of AI in Canada.
He urged for a collaborative approach involving institutes, incubators, universities, regulatory frameworks, and companies to propel the sector to the next level and ensure that the burgeoning AI landscape becomes a success story firmly rooted in Canada.
