Canadian CEOs Brace for Uncertain Future, Seek Bold Strategies for Long-Term Survival

Canada’s top executives are increasingly worried about the future of their businesses, with a growing number acknowledging the need for major transformations to ensure long-term sustainability.

According to an annual CEO survey by PricewaterhouseCoopers LLP (PwC), 35% of Canadian executives expressed concerns about their companies’ ability to survive the next decade without significant changes—an increase from 32% in the previous year and 24% in 2023. The report attributed this urgency not only to immediate challenges such as tariffs and trade policies but also to broader global megatrends, including geopolitical tensions, technological disruption, demographic shifts, and climate change, all of which are accelerating and reshaping both business and society.

Despite recognizing these pressing challenges, Canadian CEOs lag behind their global peers in implementing changes. The survey indicated that 46% of Canadian executives plan to integrate artificial intelligence (AI) into their core business strategies, compared to 58% worldwide. Similarly, 63% reported launching an innovative product in the past five years, while the global average stood at 72%.

PwC Canada’s CEO, Nicolas Marcoux, noted in the report that while Canadian executives are more optimistic about economic growth than in previous years, they also recognize the need to adopt AI and emerging technologies, invest in new industries, and reinvent their business models. He pointed out that, despite uncertainties surrounding potential economic policies under the new U.S. administration, Canadian business leaders remain resilient and are actively preparing for the challenges ahead.

In light of ongoing economic uncertainty in North America, PwC recommended that companies strengthen their supply chains, make operational adjustments, and explore merger and acquisition opportunities. The report advised that now is the time for leaders to proactively prepare for shifts in trade relationships, potential protectionist policies, and fluctuations in currency markets.

One significant area of focus for Canadian executives is AI adoption. The survey found that 79% of them plan to incorporate generative AI into their operations in the coming year, though this figure remains lower than the 87% reported globally. A potential factor behind this hesitancy could be that only 20% of Canadian executives saw AI boost profitability last year, despite 39% having anticipated positive financial impacts.

On the other hand, Canadian companies appear to be more inclined toward expansion through acquisitions. The report revealed that 58% of executives plan to pursue at least one acquisition in the next three years, surpassing the global average of 54%.

PwC suggested that, to navigate uncertain economic conditions, executives should diversify their businesses, seek strategic partnerships, and prepare for multiple scenarios. The report emphasized that business leaders should actively explore opportunities to transform and innovate in response to trade challenges, viewing reinvention as a key strategy for enhancing productivity.

More broadly, PwC underscored that reversing Canada’s sluggish productivity growth would require a combination of policy measures, government investments, and corporate initiatives. While the public sector has a role to play, the report emphasized that private enterprises and organizations must also take decisive action to drive meaningful change.

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