Executives across Canada are rapidly investing in artificial intelligence (AI) as they seek greater productivity, enhanced efficiencies, and improved decision-making capabilities. However, many leaders struggle to articulate the impact of these technologies on their bottom lines. A recent survey by KPMG of 753 Canadian business leaders revealed a significant increase in AI adoption, climbing from 61% in 2024 to 93% currently. Despite this surge, only 31% of respondents have successfully integrated AI into their core operations, while a third are piloting it in various business segments, leaving the remainder still in experimental phases.
The findings point to a growing disconnect between optimistic projections and tangible outcomes, a trend that could influence Canada’s economic landscape for years. For many businesses, AI remains more of a series of tests rather than a transformative shift in operational structures. The current situation reflects a national AI boom that is yet to deliver measurable enterprise-level value, along with an increasing sentiment among executives that mere adoption is insufficient.
As of now, only 2% of leaders report having seen measurable ROI from their AI investments, predominantly in larger firms with annual revenues exceeding $1 billion. While 30% anticipate returns within a year, a substantial 61% expect results to take as long as five years. “Only a small sliver of Canadian businesses are generating growth from their AI investments today, and that’s understandable — new technologies take time to be adopted and demonstrate identifiable return on investment,” said Stephanie Terrill, Canadian managing partner of digital and transformation at KPMG Canada. She emphasized the critical nature of this issue as Canada faces economic competitiveness challenges amid declining productivity.
The crux of the problem lies in knowing what metrics to monitor. More than half of the respondents reported difficulties in capturing the value derived from AI, with fewer than 40% possessing a clear plan to measure this value. Terrill argues that outdated ROI frameworks hinder progress. “To realize the full value of AI, organizations need clear ROI frameworks that measure not just financial impact, but strategic and capacity gains,” she stressed. KPMG advises organizations to blend traditional metrics such as cost savings with softer indicators like employee experience and customer loyalty to gain a more comprehensive understanding of AI’s impact on competitiveness.
While many leaders are prioritizing investments in AI tools and systems, attention to talent is equally vital. Nearly half of surveyed companies (46%) are channeling their AI budgets toward hiring new tech talent, with 41% focused on generative AI tools and 33% on change management. However, only 35% of leaders strongly believe their employees possess the necessary skills to leverage AI effectively. “Business leaders are no longer contemplating whether they should invest in AI — they’re concentrating on how to scale it responsibly and effectively,” Terrill noted.
As the AI landscape matures in Canada, the challenge has shifted from mere adoption to the execution of these technologies. Organizations must transition from pilot projects to full-scale implementations that deliver real results. Terrill warned that “Canadian organizations need to accelerate AI implementation into core operations to start achieving near- to medium-term productivity gains if we hope to become more economically competitive as a country.” The path forward requires a concerted effort to embed AI deeply into business processes, rather than treating it as a series of isolated experiments.
The findings from KPMG underscore that while AI adoption in Canada is on the rise, the depth of integration and the ability to track ROI remain significant hurdles. As companies strive to measure AI’s true impact, those that focus not only on technology but also on building employee literacy and aligning AI with core business functions are likely to see quicker returns. The urgency is clear: how swiftly Canadian organizations can move from experimentation to execution could define the nation’s economic strength in the years to come.
For more information on KPMG’s findings, visit KPMG Canada.
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