A new report from global consulting firm KPMG reveals that Canadian businesses are increasingly embracing artificial intelligence technologies, though the majority have yet to see significant returns on their substantial investments.
Widespread Adoption But Limited Returns
The comprehensive study, released in November 2025, indicates that AI implementation has surged across Canadian companies of all sizes and sectors. However, the research highlights a significant gap between adoption rates and tangible business outcomes, with only a small fraction of organizations reporting measurable financial benefits from their AI initiatives.
According to the findings, while businesses are investing heavily in AI infrastructure and talent, many are struggling to translate these technological capabilities into improved profitability or operational efficiency. The report suggests that companies may be prioritizing adoption over strategic implementation, leading to underwhelming results despite substantial financial commitments.
Challenges in AI Implementation
The KPMG analysis identifies several key factors contributing to the disconnect between AI adoption and returns. Many Canadian businesses face challenges in integrating AI systems with existing workflows and ensuring these technologies align with core business objectives.
Additionally, the report notes that companies often underestimate the resources required for successful AI implementation, including specialized talent, data infrastructure, and ongoing maintenance. The complexity of measuring AI's impact on business performance also presents difficulties for organizations trying to quantify their return on investment.
Future Outlook for AI in Canadian Business
Despite the current challenges, the KPMG report remains optimistic about the long-term potential of AI in the Canadian business landscape. The consulting firm emphasizes that early adopters who develop comprehensive AI strategies are likely to see improved returns as they refine their approaches and overcome initial implementation hurdles.
The report concludes that Canadian businesses should view AI as a long-term investment rather than expecting immediate returns. Companies that focus on building strong data foundations and developing clear use cases for AI technologies are positioned to gain competitive advantages as the technology matures and becomes more integrated into business operations.
As AI continues to evolve, KPMG recommends that Canadian businesses prioritize strategic planning and measurable objectives to ensure their investments ultimately deliver the promised benefits and drive meaningful business transformation.
