Skip to main content
Home » Technology & Innovation » Future of AI 2024 » New Report Shows AI Adoption Strategy for Canadian Business is Essential 
Future of AI

New Report Shows AI Adoption Strategy for Canadian Business is Essential 

Sponsored by:
Sponsored by:

Canada excels in AI research but trails in adoption. Learn how new strategies and a competency framework can drive AI adoption and innovation.

Canada has a reputation as a global leader in artificial intelligence (AI) research and development. Look no further than the recent Nobel Prize awarded to the University of Toronto’s Geoffrey Hinton. Yet, Canada lags in the adoption of AI technologies in the workplace — with research indicating only 35 per cent of Canadian businesses use AI, compared to 72 per cent in the U.S. Canada’s small- and medium-sized businesses (SMEs), which account for the majority of private sector jobs, are falling far behind with just eight per cent of medium businesses and six per cent of small businesses using AI. Creating disruptive technologies does not produce innovation. Using them does. 

New data from our latest report Artificial Intelligence at Work, with the Environics Institute, supported by the Future Skills Centre, surveyed over 5000 Canadians and shows that nearly 3 in 10 employees report using AI tools at work, yet 44 per cent of these users have not received any formal training. This suggests that their employers may not have policies or processes or even know how their employees are using AI, creating massive risks of intellectual property, privacy and cybersecurity.  Findings also showed that, of those using AI, more than two thirds (68 per cent) are learning independently, either through self-guided training (24 per cent) or without any structured guidance (44 per cent). 

The “English Major’s Revenge”: An opportunity to bridge the digital divide

The data also highlights the potential for AI to bridge the digital divide. The gender gap for AI use in the workplace is much smaller than with other advanced technologies. Among workplace AI users, 52 per cent are men and 47 per cent are women. Younger workers, Indigenous people, racialized individuals, and immigrants are more likely to report familiarity with AI and access to workplace training. Access to networks, tools, and skills can be barriers but in some respects the power of AI-enabled “low code, no code” applications open up opportunities for diverse groups which are often under-represented in science, technology, engineering, and math (STEM) fields.   

The data also highlights the potential for AI to bridge the digital divide. The gender gap for AI use in the workplace is much smaller than with other advanced technologies.

The emergence of generative AI —  “the English major’s revenge” — further democratizes AI skills which require excellent language and reasoning skills, broadening pathways to good jobs. Using diverse teams in developing AI has proven effective given its potential for embedding bias when it reifies historical data and decisions. Another recent Diversity Institute report co-authored with the Ontario Society of Professional Engineers — More than Just Numbers Revisited — underscores the importance to increase the participation of women and other equity deserving groups in STEM to advance inclusive design. At the same time, shifting our focus from developing tools to ensuring responsible and ethical adoption of AI highlights the need for a wider range of skills and disciplines — policy, law, organizational change and strategy, consumer behaviour, and more.

As part of its work with the Future Skills Centre, the Diversity Institute has developed a competency framework for AI. At the apex are the deep AI skills including machine learning, and data analytics required to develop the technology.  In the middle are AI innovation skills which are essential to help organizations in different sectors match technology to their needs and drive adoption. But the foundation is AI literacy which all Canadians regardless of their professional sector need.  

Barriers for SMEs and Canada’s AI paradox

SMEs, which account for about 90 per cent of private-sector jobs in Canada, face significant challenges in adopting AI. Unlike large corporations who tend to dominate the discussion and shape our strategies, SMEs often lack the resources and expertise to implement AI solutions responsibly. Many lack the investments needed but even more simply do not know where to begin or have the talent needed to move forward. Given the structure of our economy, any solution needs to address this challenge for SMEs. 

A Future Skills Centre-supported initiative, the Skills Bridge program, developed by the Ontario Chamber of Commerce and Magnet with the Diversity Institute, is attempting to address these issues with a shared platform to support SMEs and their staff in navigating digitization and other transformations. By developing and curating training, use cases and other tools, Skills Bridge helps SMEs who lack the resources and expertise individually to create a critical mass for change. Coupled with student work integrated learning programs, there is an opportunity to both support SMEs in implementing AI solutions while creating pathways to employment. To date, more than 500 companies have participated, but the program continues to attract more organizations. There are also opportunities for nonprofit organizations and government sectors which have many barriers to adoption.  

The way forward

Our report findings underscore the need for a comprehensive AI adoption strategy that addresses skills development, particularly for SMEs and equity-deserving groups. Canada’s paradox — leading in AI research but lagging in its use — requires urgent action if we are to achieve the promise of AI while managing its risks. 

The new Canadian Artificial Intelligence Safety Institute is a welcome initiative to ensure we have the ethical frameworks to manage the risks. The planned $2 billion commitment to AI compute infrastructure is a game changer, particularly for researchers and large corporations. But we cannot assume that “if we build it, they will come.” We also need a targeted strategy to address barriers to the adoption of AI, particularly in SMEs, if we want to harness the potential of AI and manage the risks. Working together, policymakers, employers, industry associations, and educational partners must act swiftly to equip workers with the skills needed for the AI-driven future.  


To learn more, visit torontomu.ca/diversity

Next article