Only 19% of Canadian businesses plan to adopt AI soon, risking innovation and productivity
Deloitte Canada has identified four interconnected global disruptions significantly impacting Canada: talent transformation, AI revolution, the race to net-zero, and geopolitical uncertainty.
Each force influences the others, requiring a sophisticated response to address their trade-offs and interdependencies.
Since 2020, the world of work in Canada has changed dramatically due to an aging population, evolving skills needs, and shifting worker preferences. Employers now face growing shortages of both workers and skills.
This disruption threatens business innovation, growth, and productivity. Investing in reskilling the workforce could bridge these gaps, enhancing Canada’s competitive advantage.
New research by Deloitte Canada highlights the impact of these disruptions on productivity. The adoption of AI technologies and talent shortages are significant challenges for Canadian businesses and workers.
The report showed how these global disruptions are shaping Canada's future, including survey data for each. Findings for the AI revolution revealed only 19 percent of Canadian businesses plan to adopt AI in the next few years, and only 15 percent are currently using it.
While 90 percent state that adapting to technological change is a moderate to high priority, more than half (56 percent) do not use AI and are not in the process of adopting it.
Furthermore, 48 percent feel their employees are barely or not at all prepared to use AI or GenAI, with only 5 percent indicating their workers are “very prepared.” In Ontario, 55 percent of respondents do not currently use AI and are not in the process of adopting it.
Additionally, 36 percent of Ontario respondents report that their employees are “not at all comfortable” with the skills and know-how to build and utilize AI, higher than the national average of 29 percent.
Canadian organizations are lagging in AI adoption due to difficulties in hiring the talent needed to deploy and leverage AI.
If the talent shortage is not addressed soon, widespread, and prolonged job vacancies and skills shortages will continue to negatively impact business innovation, growth, and productivity. Talent transformation data shows:
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74 percent say it is a challenge to hire employees with the necessary skills.
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62 percent face a persistent and long-term shortage of skills among existing employees. Only 31 percent say they are “highly effective” at providing professional development opportunities to close this gap.
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64 percent view competitive wages and benefits as “highly important” for attracting and retaining talent, but only 36 percent say they are “highly effective” at offering this.
The urgent need to address climate change has accelerated efforts worldwide to achieve a net-zero future.
Canada's GDP will be significantly impacted by climate change, with potential costs reaching upward of US$5.5tn by the end of the century. Conversely, decisive climate action could boost the global economy by US$43tn by 2070.
Global power dynamics are shifting, leading to geopolitical instability that impacts supply chains, trade, and security. This uncertainty poses risks and opportunities for Canada, particularly in its heavy reliance on trade.
The rising tensions, such as the Russia-Ukraine conflict, affect global supply chains, making it imperative for Canada to navigate these changes strategically.
A Deloitte survey revealed that 80 percent of respondents believe Canada's current and future prosperity depends on effectively addressing these global disruptions. However, 79 percent noted that the international environment has shifted dramatically in recent years.
To build a better future, Canada must address these disruptions not only individually but also by recognizing the trade-offs and interdependencies between them. This calls for systems-level thinking, greater collaboration, and innovative solutions.
