PwC finds majority of Canadian CEOs plan AI adoption, but profitability and efficiency fall short
A recent survey by PwC found that Canadian CEOs are falling behind their global counterparts in integrating artificial intelligence (AI) and taking climate-related actions, according to BNN Bloomberg.
The findings come from PwC’s annual Global CEO Survey, which polled thousands of executives globally, including 167 from Canada.
The survey revealed that 79 percent of Canadian CEOs plan to adopt AI within the next year, compared to 87 percent of global CEOs.
However, Canadian executives are slower in incorporating AI into strategies, operations, and workforce development.
“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 noted in its report.
Nicolas Marcoux, CEO of PwC Canada, emphasized the importance of fully integrating AI.
“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.
The survey found a notable increase in economic optimism among Canadian CEOs. About 55 percent of respondents expect global economic growth to improve this year, up from 31 percent in the previous survey.
Domestic growth expectations also rose, with 42 percent of Canadian CEOs anticipating economic improvement, compared to 25 percent last year.
Marcoux pointed out that Canadian CEOs are preparing for future challenges. “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.
A growing number of Canadian CEOs—35 percent compared to 32 percent in the previous survey—believe their current business models may not be viable in a decade. However, many are taking steps to address this.
According to PwC, 60 percent of Canadian CEOs (compared to 64 percent globally) have made significant changes to how their organizations create, deliver, and capture value.
Additionally, 58 percent of Canadian CEOs, slightly higher than the global figure of 54 percent, plan to pursue acquisitions within the next three years to gain new capabilities and talent.
While Canadian CEOs are making progress in climate action, they continue to lag behind their global counterparts. The survey showed that 72 percent of Canadian CEOs have initiated climate-related investments over the past year, compared to 81 percent globally.
“Canadian CEOs are harnessing emerging opportunities from decarbonization to create value,” PwC reported.
However, it added that the lower percentage of climate-related investments in Canada might indicate that some CEOs are not seeing the benefits of such actions.
