AI Adoption by Canadian Businesses Slow Despite Stated Interest

Rapid advances in Artificial Intelligence (AI) technology have sparked excitement among businesses eager to harness its potential. However, the actual adoption of AI has not kept pace with this enthusiasm. While almost half of S&P 500 companies have mentioned AI in earnings calls since May, only 4.4% of businesses in the United States report using AI to produce goods or services. In Canada, the adoption rate is even lower, with only 3.7% of businesses reporting the use of AI technologies.
Analysis of the most recent data collected by Statistics Canada reveals that firm size and sector significantly influence AI adoption. Larger firms, particularly those with 100 or more employees, are more likely to adopt AI, with a 20% adoption rate. Industries such as utilities, finance, insurance, information, and cultural industries are at the forefront of AI adoption. However, sectors that contribute significantly to Canada’s GDP, like real estate and manufacturing, lag behind with weaker adoption rates.
The main obstacle to AI adoption, cited by 69% of Canadian businesses not using AI technology, is the challenge of identifying a business case for AI. Additionally, 28% reported being unaware of the available AI tools. For firms already in the AI marketplace, the cost of technologies and skills gaps in their workforces were identified as the primary barriers to adoption.
In a global context, Canada ranks 20th out of 35 countries for AI adoption among firms with 10 or more employees. This ranking further underscores the potential for Canadian businesses to accelerate their AI adoption strategies to remain competitive on the global stage.
Author: Cristin Hunt, 2023/2024 Articling Student-At-Law
Image by https://unsplash.com/@omilaev
Expertise
Insights
-
Technology
Dominion Dynamics and Arctic Training Centre Announce Strategic Partnership
Dominion Dynamics, an Ottawa-based defense technology company, has partnered with Arctic Training Centre, a training and testing facility based in the Yukon, to develop and test its technologies. This… -
Technology
Nothing Raises US$200 Million Series C to Power an AI-First Future
Smartphone startup Nothing has closed a US$200 million Series C round, led by Tiger Global, bringing its valuation to US$1.3 billion. Other investors in the round included returning investors GV… -
Technology
OpenWav Streaming Platform Hopes to Remix the Music Industry
OpenWav, an audio streaming app that launched over the summer, continues to build momentum on its mission to return the power in the music industry to the artists at its centre.The app -- its name a… -
Technology
Precision Wellness: How Molecular You is Scaling Personalized Blood Testing
Founded in 2014, Vancouver-based healthcare startup Molecular You provides greater visibility into individual health through its direct-to-consumer blood testing platform. Using advanced quantitative… -
Technology
NASA Rover Discovers More Compelling Indicators of Ancient Life on Mars
NASA recently announced that its Perseverance rover has uncovered the clearest evidence yet of ancient life on Mars. The discovery concerns a reddish rock sample named Sapphire Canyon collected in… -
Technology
Neuralink Trial Implantations Underway at Toronto Hospital
Doctors at the University Health Network’s Toronto Western Hospital recently performed the first-ever implantations of the Neuralink brain-computer interface (BCI) outside of the United States. These…