A recent policy matters article by the Canadian Chamber of Commerce examines how artificial intelligence is currently being adopted by Canadian businesses, where Canada is falling behind, and what needs to change to improve competitiveness and productivity.

Key takeaways:

 • AI adoption is growing but still limited.
 Only about 12–14 percent of Canadian businesses were using or planning to use AI in 2025, with adoption projected to reach 17–18 percent in 2026, well below global peers

 • Adoption is concentrated in a few sectors.
 The strongest AI uptake is in professional services, finance and insurance, information and culture, and health and social assistance, each seeing AI adoption increases of 10–20 percent between Q2 2024 and Q2 2025 1.

 • AI is reshaping work, not eliminating jobs.
 Despite public concern, 89 percent of AI-using businesses have not reduced employment, and only 6 percent reported job losses. Some high-adoption sectors, like finance and insurance, saw job growth alongside AI adoption.

 • Canada risks a slow adoption trajectory.
 Business Data Lab research suggests Canada may not reach a 50 percent AI adoption “tipping point” until 2030 under a slow adoption scenario, limiting productivity growth.

 • Productivity is the core issue.
 The Chamber frames AI as a key solution to Canada’s chronic productivity problem, enabling automation of low-value tasks and allowing workers to focus on higher-value activities.

 • Four barriers must be addressed to scale AI adoption:
  - Regulation: Avoid excessive red tape while ensuring responsible use
  - Investment: Improve access to financing, especially for SMEs
  - Workforce: Expand AI skills, retraining, and talent pipelines
  - Infrastructure and compute: Focus on access to critical computing resources rather than overbuilding data centres

Public trust is also highlighted as essential, as Canadians remain more cautious about AI than peers in other countries.

Why This Matters to Business

1. Productivity is now a competitiveness issue, not a future one
 Canada’s lagging AI adoption directly affects productivity, cost control, and global competitiveness. Businesses that delay adoption risk falling behind faster-moving international competitors.

2. AI adoption does not automatically mean job losses
 The data counters a major fear among employees and leaders. Most businesses adopting AI are retraining staff and redesigning workflows, not cutting jobs, which supports more sustainable growth strategies.

3. Early adopters gain operational advantages
 Businesses using AI report improvements in data analysis, customer interaction, and internal efficiency. These gains compound over time, widening the gap between adopters and non-adopters.

4. SMEs face real barriers that require policy attention
 Access to capital, skills, and infrastructure remains a major constraint. This reinforces why business voices are critical in shaping AI regulation, incentives, and workforce programs.

5. Regulation decisions made now will shape the next decade
 How Canada balances innovation and regulation will directly influence private-sector investment, adoption speed, and whether AI development happens domestically or elsewhere.

Bottom line for business leaders

AI is no longer an experimental technology. It is becoming a core productivity tool, and Canada’s slow adoption poses a real economic risk. Businesses that engage early - and advocate for practical policy, skills development, and investment support - will be better positioned as AI becomes standard across industries.

Read the latest Policy Matters: https://chamber.ca/policy-matters-the-big-questions-about-ai-and-canadian-business/