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
Bluesky Rolls Out New Community Guidelines
Bluesky, a social network competitor of X, Threads and other open networks including Mastodon, is revisiting its community guidelines and other user policies to provide more clarity around user safety… -
Technology
Perplexity AI’s All-Cash Bid for Google Chrome
AI startup Perplexity AI has made an unsolicited US $34.5 billion bid to acquire Google’s Chrome browser. With over three billion users, Chrome is currently the most popular browser in the world… -
Technology
Concordia University Students Launch ‘Starsailor’ Rocket from Northern Quebec
Students from Concordia University’s Gina Cody School of Engineering and Computer Science recently launched “Starsailor,” a rocket that a team of over 700 members developed over the past seven years… -
Technology
BC’s Mushroom-Plucking Robots Harvest Big in Latest Round of Fundraising
4AG Robotics, a British Columbia-based start-up that uses robots to harvest commercially grown mushrooms, has received a C$40 million venture capital investment to further develop its fungi-focused… -
Technology
Canada’s New Virtual Hub for Wildfire Innovation and Knowledge Exchange
With the increasing threat wildfires pose to the safety, health and economic wellbeing of Canadians and ecosystems across the country, the federal government has established the Wildfire Resilience… -
Technology
The Modernization of Estate Planning with "Trusty"
With many Canadians lacking a will, Trusty, a Toronto-based startup, aims to revolutionize estate planning by leveraging artificial intelligence (“AI”) and technology. Founder Randy Frisch created the…