It’s Time to Get More Serious about AI! | Part 3
Part 3 of a 3-part series
Part 3: Why many Canadian businesses are hesitating
Over 40% of Canadian businesses are interested in AI[1]. However, perceived barriers to adoption have caused Canadian businesses to “walk the AI adoption race” rather than take a more aggressive approach.
The most cited barriers include a lack of AI expertise, limited access to training and uncertainty about future computing costs. Georgian Partners, a major Canadian VC specializing in AI, found that “about 48 percent of Canadian technical executives said an absence of technical talent was a challenge impeding AI adoption". Additionally, Canadian firms with annual revenue greater than $5 million are trailing compared to their global peers”[2].
Why do we appear to be lagging behind our international peers? Canada is a small market, and Canadian companies are generally smaller than many global competitors. It may also be our conservative corporate culture: AI is still relatively new and complex, and many C-suite leaders remain uncertain about what AI can and cannot do. Therefore, executives are reluctant to invest capital to move beyond the experimental phase. Some business publications are reinforcing the skepticism. In March 2025, The Wall Street Journal published a major feature cautioning that it’s too early for many businesses to dive into AI because they lack the proper data architectures and talent – capabilities that will take time to develop.
According to a recent article in The Economist, AI pilot abandonment rates spiked from 17% to 42%. Of course, with any new technology, some failure is expected — but 42% is high. The sharp increase in failure rates over the last year can be attributed to over-exuberance, poor pre-planning, and insufficient understanding of the data requirements for a pilot and beyond. A key lesson is that a planned approach to AI is better than rushing. A “walking” strategy in an arms race is too slow. Subject matter experts, like members of the CMA’s AI Committee, suggest a jogging race plan for the AI marathon ahead.
AI’s strategic potential in business and marketing is huge. Businesses should view AI not only as a way to improve processes but also as a tool for building assets and growing revenue. Creating intellectual property through patents and products is a path to business success and a sustainable competitive advantage for Canada as a nation. Zamkow from IBM notes: “Introducing GenAI to marketing is a major shift in roles and capabilities, which requires operational model changes and major upskilling”.
Then outline how AI Stakeholders Can Help
Companies do not need to pursue AI all on their own. As the saying goes “if you want to move fast, do it alone but if you want to do it right find the best partners”. Allies are important in AI because they can bring different strengths to the table.
The Canadian AI ecosystem has most of the ingredients for large-scale success: world-leading researchers, prominent associations such as the Vector Institute (Toronto), Mila (Montreal), and Amii (Edmonton). Plus, more than 200 universities and colleges are working on AI grant projects through NSERC, Mitacs and other government funding programs. In the marketing sector, Queen’s University School of Business is actively working on several private/public partner projects in its Customer Analytics & AI Center.
Much of this research is paying off. A white paper published by the federal Department of Industry, Science and Economic Development notes that Canada has ranked first in the G7 for AI-related scholarly output per capita since 2019, and has achieved the highest year-over-year increase in the G7 for AI talent. Fueling these research stakeholders is important.
Some business leaders are stepping up in AI. RBC CEO Dave McKay commented during the bank’s 2025 investor day that we are in an “AI arms race”. RBC has committed $5 billion annually toward technology and AI, alongside major alliances with Canadian think tanks and strategic partnerships with NVIDIA and Cohere LLM to build a “bank of the north” solution.
RBC is betting big and expects tangible outcomes, including a boost in net income of more than $1B by 2027.
Indicators of alignment
More capital is essential for the growth of AI in Canada. In a step forward, the federal government announced its first ever Minister of Artificial Intelligence and Digital Innovation. The federal government has committed several billion dollars toward AI infrastructure but this pales in comparison to the money being spent in the U.S. Rather than trying to compete in all sectors, Canada is focusing on a few strategic clusters such as fintech, agri-tech, mining and health.
Some large banks are stepping up and making big AI bets. According to UK consultancy Evident AI (October 2024), Canada's Big Five banks are punching above their weight and all rank in the top 25 worldwide. On AI capabilities, RBC is ranked third overall in the world based on four key pillars: talent, research and IP, ventures and partnerships, and open systems. The other Canadian banks rank as follows: TD (#9), Scotiabank (#20), CIBC (#22), and BMO (#24).
Now is the Time.
Given the rapid advancements in AI, doing nothing and being overly cautious may leave your business unable to catch up. Business leaders must be proactive. Doing nothing during the AI race is risky.
From a macroeconomic perspective, AI is evolving rapidly at exactly the right time for Canada, which has both a labour productivity problem and a weakness in commercialization. Canada is strong at inventing technology but too often gives it away.
Let's not be a hesitation nation. Let’s aspire to be in the winning pack of allies. Now is the time to be both a fast follower and a smart follower. Canada can lead in Responsible AI and excel in applications in critical sectors like agri-tech, fintech, and health. Marketing, as a data-driven profession across many sectors, is poised to evolve to the next level with AI.
This year is “crunch time” for AI. Let’s create real-world use cases to prove the benefits for business. It’s time to “make it or break it”. Do we have the ambition to be part of the winning team? Now is the time for Canada to get more serious about AI.
[1] Statistics Canada, Analysis on Artificial Intelligence Use by Businesses in Canada, Q2 2025, released June 16, 2025.
[2] BetaKit, “Most Canadian Companies Are Walking the AI Adoption Race: Report,” by Madison McLauchlan, July 9, 2025.
