The AI Adoption Gap Among Canadian Businesses: Insights from the 2025 Survey

Introduction

Artificial intelligence is no longer the preserve of tech giants. Small and medium‑sized enterprises are exploring AI to automate tasks, enhance customer experiences and gain competitive advantages. But how widespread is AI adoption in Canada? Statistics Canada’s Canadian Survey on Business Conditions for the third quarter of 2025 provides valuable insight www150.statcan.gc.ca. This blog unpacks the findings, explores reasons for the adoption gap and offers guidance for businesses looking to harness AI.

Key statistics

The survey, conducted between July 2 and August 6, 2025, reveals that 12.2 % of Canadian businesses reported using AI to produce goods or deliver services in the previous 12 months, up from 6.1 % a year earlier www150.statcan.gc.ca. Despite this growth, adoption remains relatively low. Looking ahead, 14.5 % of businesses plan to use AI over the next 12 months, while 66.7 % report no plans and 18.9 % remain uncertain www150.statcan.gc.ca.

Among the companies not planning to adopt AI, the majority (78.1 %) said AI was not relevant to their products or services www150.statcan.gc.ca. Other reasons included lack of knowledge about AI capabilities (11.3 %), concerns about privacy and security (8.1 %), immaturity of the technology (7.6 %) and cost (4.7 %) www150.statcan.gc.ca.

Adoption by sector and size

Information and cultural industries lead adoption: 38.6 % of businesses planning to use AI come from this sector www150.statcan.gc.ca. Finance and insurance follow at 31.5 % www150.statcan.gc.ca. Smaller businesses are less likely to plan adoption, whereas larger firms — with more resources — are more optimistic about implementing AI www150.statcan.gc.ca. This trend suggests that awareness and investment are concentrated in sectors that already rely heavily on data and technology.

Interpreting the gap

The adoption numbers may seem low compared to media hype, but they reflect genuine challenges. Many businesses view AI as irrelevant because they equate AI solely with advanced robotics or chatbots. In reality, AI spans a wide range of tools, from predictive analytics to simple automation scripts. Lack of knowledge about AI capabilities is a significant barrier www150.statcan.gc.ca — businesses may not realize that AI can help optimize inventory, forecast demand or personalize marketing.

Concerns about privacy and security also loom large www150.statcan.gc.ca. The emergence of generative AI models has raised alarms about data leakage and misuse. Without clear guidelines, some companies prefer to avoid AI altogether rather than risk non‑compliance. In addition, the immaturity of technology and costs deter adoption, especially among SMEs.

Overcoming barriers

To narrow the adoption gap, businesses can take practical steps:

  1. Educate and demystify AI – Leadership teams should invest in understanding different AI capabilities. Workshops and consultations with providers like Greenaty Inc. can illustrate how machine learning, natural language processing and intelligent automation apply to their operations.

  2. Start small – Rather than launching a full‑scale transformation, pilot a small AI project that delivers measurable benefits (for example, predictive maintenance or automated invoice processing). Early wins build confidence and justify further investment.

  3. Invest in data governance – Clean, well‑structured data is essential. Establish policies for data quality, security and privacy. This not only supports AI but also ensures compliance with regulations like PIPEDA xenoss.io.

  4. Prioritize staff training – Training staff is the most common operational response to AI adoption www150.statcan.gc.ca. Develop internal skills or partner with AI training providers to ensure employees can deploy and manage AI responsibly.

  5. Collaborate with experts – Engage AI consultants, academics and industry associations. External experts can assess feasibility, identify use cases, and help navigate regulatory requirements.

  6. Leverage government programs – Take advantage of funding and support from the Pan‑Canadian AI Strategy. Programs under the strategy’s commercialization pillar help businesses access research talent and resources ised-isde.canada.ca.

Case for responsible adoption

While adoption numbers are low, early adopters demonstrate tangible benefits. Automated virtual agents and chatbots are among the most expected AI applications www150.statcan.gc.ca, offering improved customer service and efficiency. However, adoption must be responsible. Businesses should conduct bias assessments, ensure transparency and follow privacy laws. The proposed AIDA bill and the voluntary code provide frameworks for high‑impact applications xenoss.io. Aligning with these guidelines will help companies avoid legal pitfalls and build public trust.

Opportunities for Greenaty Inc.

These findings create opportunities for service providers. Greenaty Inc. can help businesses understand AI’s relevance, develop customized AI workflows, and build staff capacity. By offering AI auditing and consulting, Greenaty can identify compliance gaps and recommend improvements. It can also design virtual agents tailored to industries like retail, finance and healthcare, addressing sector‑specific challenges.

Conclusion

Statistics Canada’s survey reveals both progress and hesitation in AI adoption. While adoption doubled year‑over‑year, the majority of businesses still do not plan to use AI. The gap stems from perceived irrelevance, lack of knowledge and concerns over privacy, cost and maturity. By demystifying AI, focusing on practical use cases and investing in data governance and staff training, Canadian businesses can close the adoption gap. Service providers and government programs will play an essential role in helping organizations navigate these challenges and reap the benefits of responsible AI.

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Pan‑Canadian AI Strategy: Building a Sustainable AI Ecosystem in Canada

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Responsible AI in Canada’s Public Sector: A Vision for 2025–2027