Manufacturing experts say there are specific ways integrating AI into the sector can help reduce costs and improve margins in the face of trade tensions, but note it won’t be a silver bullet.

“When the U.S. charges a 25 per cent tariff, if you can drop the supply price by, let’s say 20 per cent … then we can neutralize the additional cost due to the tariff,” said Chi-Guhn Lee, a University of Toronto professor and director of the AI in Manufacturing centre.

Currently, he said AI adoption in Canadian manufacturing is “widespread” and interest is high across the board but implementation is at very different stages for different companies. Some firms made investments years ago and are now “quite advanced,” he said.

There are also stark differences between the U.S. and Canadian industries,

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