Canadian CEOs Lag Behind in AI Adoption Amid Rising Optimism for Growth

A recent survey by PwC revealed that Canadian executives are slower to adopt artificial intelligence (AI) compared to their global counterparts, with only 79% of Canadian CEOs planning to implement AI within the next 12 months, compared to 87% globally.

The report highlighted that Canadian companies are falling behind in integrating AI into their strategies, operations, and workforce development. This slower adoption has led to underwhelming outcomes from AI implementation. For example, while 54% of CEOs in last year’s survey anticipated improved employee efficiency from generative AI, only 45% reported realizing those gains. Similarly, expected profitability increases were achieved by just 20% of respondents, compared to the projected 29%.

PwC Canada CEO Nicolas Marcoux commented on the untapped potential of AI within Canadian businesses. He noted that although Canadian CEOs remain optimistic about economic growth, they recognize the urgent need to embrace AI and other transformative technologies, invest in new sectors, and reinvent their operations.

The survey also reflected a growing confidence among Canadian executives about the economy, with 55% expecting global economic growth to improve in the next year, up significantly from 31% in the previous year. Domestically, 42% anticipated economic growth, a marked increase from 25% last year, despite ongoing economic uncertainties, including the potential threat of 25% tariffs on Canadian exports to the US.

Many Canadian CEOs also expressed concerns about the viability of their current business models. The survey found that 35% of respondents, an increase from 32% the previous year, believe their existing structures may not be sustainable over the next decade. This has driven Canadian companies to focus on transformation, with 60% of CEOs reporting significant changes to how they create, deliver, and capture value, compared to 64% globally.

In addition, 58% of Canadian CEOs plan to pursue acquisitions within the next three years to enhance their capabilities and attract talent, slightly outpacing their global peers at 54%. Climate action was another priority, with 72% of Canadian CEOs reporting climate-related investments over the past year. However, this figure trails the 81% of global CEOs taking similar steps, which PwC attributed to skepticism among some Canadian leaders about the financial benefits of decarbonization.

Marcoux emphasized the importance of organization-wide AI integration, workforce upskilling, and transparency in addressing job evolution to build trust and maximize AI’s potential. He noted that while Canadian companies recognize the promise of AI, many have yet to see a significant impact on their bottom lines.

The findings from PwC’s annual Global CEO Survey, which included responses from thousands of CEOs worldwide, including 167 from Canada, underscore a pressing gap in AI adoption among Canadian businesses.

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