Canada Risks Falling Behind in AI Adoption, Warns Chamber of Commerce

Canadian Businesses Lag in AI Adoption, Competitiveness at Risk

A new report from the Canadian Chamber of Commerce's Business Data Lab (BDL) indicates that Canada is facing a critical challenge in the adoption of Artificial Intelligence (AI), particularly Generative AI (Gen AI). The Q4 2025 Business Insights Quarterly, released on December 16, 2025, underscores that while Canadian businesses are adapting, the momentum is slowing, leading to rising competitiveness risks.

Patrick Gill, Vice President of the Business Data Lab at the Canadian Chamber of Commerce, stated, 'The risk right now isn't moving too fast on AI. It's falling behind.' This sentiment echoes findings from earlier BDL reports, including 'Prompting Productivity: Generative AI Adoption by Canadian Businesses,' which emphasized Gen AI's potential to address Canada's persistent low productivity.

Slow Pace of Generative AI Integration

The BDL's analysis reveals a cautious approach to Gen AI adoption across Canadian industries. Key findings include:

• Only 14% of Canadian businesses are identified as early adopters of Gen AI.
• A significant 73% of Canadian businesses have not yet considered using Gen AI.
• Larger businesses demonstrate a higher adoption rate, being nearly twice as likely to utilize Gen AI compared to smaller enterprises.
• The report projects that Gen AI adoption could reach a 'tipping point' of 50% among Canadian businesses within the next three to six years. However, this pace is deemed potentially insufficient to keep up with global leaders.

Key Barriers Hindering Progress

Several factors contribute to Canada's slower AI adoption rate, posing challenges for businesses:

• Skills Gap: A substantial 68% of businesses report that not all employees possess the necessary proficiency for their current roles, highlighting a significant skills gap that Gen AI could help bridge.
• Talent and Finance: Approximately 30% of businesses cite difficulties in hiring skilled employees and accessing finance as major obstacles to adopting new technologies, including Gen AI.
• Public Apprehension: Canadians are reportedly less knowledgeable and more apprehensive about AI compared to citizens in many other countries, which may influence business adoption rates.

Implications for Canada's Economic Future

The slow integration of AI technology has direct implications for Canada's economic health. The BDL report underscores that Gen AI represents a 'generational opportunity' to boost productivity at a time when Canada's performance in this area is 'steadily headed in the wrong direction.' Failure to accelerate AI adoption could exacerbate Canada's productivity problem and diminish its standing on the global stage.

The report emphasizes that while Canada has a strong foundation in AI research, the challenge lies in translating this into widespread commercial adoption and leveraging it to enhance overall business efficiency and innovation.