A new report from BDO Canada finds that nearly half of business leaders believe their artificial intelligence investments have not produced meaningful returns, underscoring persistent challenges in translating AI spending into tangible business outcomes.
Only 54% of leaders see positive ROI from AI
The report, based on a survey of senior executives across multiple industries, shows that only 54% of respondents reported a positive return on their AI investments. The remaining 46% said they have yet to see significant value from their AI initiatives, despite increased spending in the technology.
“Many organizations are investing heavily in AI, but without a clear strategy, data infrastructure, and workforce readiness, those investments are not paying off,” said a BDO spokesperson. The findings suggest that simply deploying AI tools does not guarantee improved efficiency or revenue gains.
Key barriers: data quality, talent, and strategy
According to the report, the top obstacles to achieving AI returns include poor data quality (cited by 38% of respondents), lack of skilled talent (34%), and unclear business objectives (29%). Companies that reported successful AI outcomes were more likely to have invested in data governance, employee training, and pilot projects aligned with specific business goals.
“AI is not a magic wand; it requires a solid foundation,” the spokesperson added. “Firms that take a measured approach, focusing on data cleanliness and incremental implementation, are seeing better results.”
Sector and size variations
The report also notes variation by industry. Technology and financial services firms reported higher AI return rates—around 65%—compared to manufacturing and retail, where only 45% saw positive returns. Larger enterprises with dedicated AI teams fared better than small and medium-sized businesses, which often lack the resources to manage complex AI projects.
BDO recommends that organizations conduct a readiness assessment before scaling AI, set measurable KPIs, and invest in change management to improve adoption rates among employees.
