PwC report finds Canadian executives optimistic about growth but slow to realize AI's potential
A recent survey by PwC Ltd. revealed that Canadian executives are slower than their global counterparts in adopting artificial intelligence (AI) across their businesses.
According to BNN Bloomberg, the report found that 79 percent of Canadian CEOs plan to adopt AI within the next 12 months, compared to 87 percent of CEOs globally.
PwC noted that Canadian companies trail in incorporating AI into their strategies, operations, and workforce development. This lag is reflected in lower-than-expected outcomes from AI implementation.
“While 54 percent of CEOs last year expected improved employee efficiency from generative AI, only 45 percent saw it. Similarly, anticipated profitability increases materialized for only 20 percent versus a projected 29 percent,” PwC stated in the report.
PwC Canada CEO Nicolas Marcoux highlighted the unrealized potential of AI in Canadian businesses.
“While many Canadian companies recognize the potential of AI, they have yet to see the impact of it on the bottom line,” Marcoux said.
He emphasized the importance of integrating AI organization-wide, prioritizing workforce upskilling, and addressing job evolution transparently to build trust, enhance productivity, and maximize AI’s potential.
The survey also gauged Canadian CEOs' outlook on economic growth. It found 55 percent of respondents expect global economic growth to improve in the next year, up from 31 percent in the previous year’s study.
Similarly, 42 percent anticipated domestic economic growth, compared to 25 percent last year.
Marcoux noted that Canadian CEOs remain optimistic despite economic uncertainties, particularly related to potential US tariffs.
“While Canadian CEOs are more optimistic about economic growth than they were last year, they recognize the need to embrace AI and new technologies, invest in new sectors and reinvent their businesses,” he said.
US President Donald Trump has repeatedly threatened to impose 25 percent tariffs on all Canadian exports to the US, potentially as early as next week.
The survey highlighted a growing recognition among Canadian CEOs of the need to rethink their business models. Thirty-five percent of respondents, up from 32 percent last year, believe their current business structure may not be viable in the next 10 years.
However, Canadian executives are taking steps to adapt. Sixty percent of Canadian CEOs (compared to 64 percent globally) reported making significant changes to how their organizations create, deliver, and capture value.
Additionally, more Canadian CEOs than global peers (58 percent versus 54 percent) plan to pursue acquisitions within the next three years to gain new capabilities and talent.
Climate action also emerged as a priority, with 72 percent of Canadian CEOs making climate-related investments in the past year.
However, this lags behind their global peers, where 81 percent have taken similar steps. PwC suggested that this disparity may reflect scepticism among some Canadian CEOs regarding the financial benefits of decarbonization.
“Canadian CEOs are harnessing emerging opportunities from decarbonization to create value,” PwC stated. “This is less than global CEOs, which may reflect how some Canadian CEOs aren’t seeing the upside of climate action.”
The firm’s annual Global CEO Survey, released on Wednesday, included responses from thousands of CEOs worldwide, including 167 from Canada, and highlighted a noticeable gap in AI integration.
