As an increasing number of businesses across the globe integrate artificial intelligence (AI) into their operations, a recent survey found Canadian executives are lagging their global peers in embracing the new technology.
International professional services firm PwC Ltd. released its annual Global CEO Survey on Wednesday, which polled thousands of chief executives globally last year, including 167 from Canada.
It found that 79 per cent of Canadian CEOs are planning to adopt AI in the next 12 months, compared to 87 per cent of global CEOs.
“Canadian CEOs also lag in integrating AI into strategies, operations, and workforce development,” PwC said in a report released Wednesday, adding that Canadian companies are seeing a gap in AI outcomes.
“While 54 per cent of CEOs last year expected improved employee efficiency from generative AI, only 45 per cent saw it. Similarly, anticipated profitability increases materialized for only 20 per cent versus a projected 29 per cent.”
Nicolas Marcoux, CEO of PwC Canada, said in the report that while many Canadian companies recognize the potential of AI, “they have yet to see the impact of it on the bottom line.”
“Integrating AI organization-wide, prioritizing upskilling and transparently addressing job evolution are crucial for building trust, maximizing AI’s potential and boosting productivity,” he said.
CEOs ‘optimistic’ about growth
In the survey, PwC also asked Canadian CEOs about their economic outlook for the coming year, finding that 55 per cent expect global economic growth to improve, up from 31 per cent in the previous year’s study.
Domestic growth expectations were also higher at 42 per cent compared to 25 per cent the previous year.
“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,” Marcoux said in the report.
“Despite the uncertainty around potential economic measures that could come into effect with the new U.S. administration, Canadian CEOs remain remarkably resilient and are preparing to take on the challenges ahead.”
U.S. President Donald Trump has repeatedly threatened to impose 25 per cent tariffs on all Canadian exports entering the U.S. as soon as next week.
Business reinvention
The study also found that a growing number of Canadian CEOs – 35 per cent compared to 32 per cent in last year’s study – believe their business, as currently constructed, may not be viable in 10 years.
“The good news is that Canadian CEOs are taking action to reinvent their business. 60 per cent of Canadian CEOs (64 per cent globally) have taken at least one significant action to change how their organization creates, delivers, and captures value,” the report said.
“More Canadian CEOs than those surveyed globally (58 per cent versus 54 per cent) are planning acquisitions in the next three years to access new capabilities and talent.”
PwC said the study also found that the majority of Canadian CEOs have recently taken climate action to create more value for their businesses, but they still lag their global peers.
“Canadian CEOs are harnessing emerging opportunities from decarbonization to create value. Almost three quarters (72 per cent) have initiated climate-related investments in the last 12 months,” the report said.
“This is less than global CEOs (81 per cent), which may reflect how some Canadian CEOs aren’t seeing the upside of climate action.”
Methodology
PwC surveyed 4,701 CEOs across 105 countries and territories from Oct. 1, 2024, through Nov. 8, 2024.
The global and regional figures are weighted proportionally to country nominal GDP. The industry and country-level figures are based on unweighted data from the full sample of 4,701 CEOs.
