Canadian Organizations Lag in AI Adoption, Says Deloitte Report
A new report from Deloitte Canada reveals that Canadian organizations are falling behind their global counterparts in adopting and implementing artificial intelligence (AI). Titled “Impact and opportunities: Canada’s AI ecosystem – 2023,” the report highlights the current state of AI adoption in Canada for the 2022-2023 period.
Key findings from the report show that only 26% of surveyed Canadian organizations have launched one or more AI implementations, compared to 34% globally. However, 42% of Canadian organizations have exploratory AI pilots in place, which is on par with global counterparts.
While 55% of surveyed Canadian organizations planned to increase AI investments in the following fiscal year, this figure is below the global average. Additionally, 86% of surveyed companies in Canada expressed concerns about AI’s ethical risks, with potential bias in AI algorithms (51%) and the possibility of low-quality results being the main concerns.
There is room for improvement in adopting responsible AI principles. Only 52% of surveyed organizations “always” or “sometimes” adhered to AI cybersecurity risk-management and human-centered design principles. Just 35% said the same about AI model lifecycle documentation principles.
Encouragingly, 68% of survey respondents reported that diversity, equity, and inclusion (DE&I) values were an important consideration in their AI initiatives. The number of AI patents filed by Canadian inventors increased by 57% in 2022-2023 compared to the previous year’s average growth, significantly outpacing the average 23% increase in AI patent filings in other G7 countries during the same period.
Despite a global downturn in the AI sector, Canada maintained its growth trajectory with 46 new AI companies founded in 2022-2023, matching the previous year’s additions. This contrasts with a 16.6% drop globally. Canada also ranked third globally in AI venture capital investments per capita in 2022, demonstrating strong support for AI start-up companies.
The report suggests several actions for Canadian organizations to improve their AI adoption and implementation. These include identifying use cases that drive value by tackling business-critical challenges, continuing wide-ranging collaborations to drive responsible AI development and use, developing a comprehensive AI strategy aligned with overall business objectives, investing in building internal AI capabilities and upskilling employees, and fostering a culture of innovation and experimentation with AI technologies.
The report emphasizes that while Canada has a strong foundation in AI research and talent, there is a pressing need to accelerate AI adoption and implementation to maintain the country’s competitive edge in the global AI landscape. By addressing these challenges and capitalizing on existing strengths, Canadian organizations can position themselves to fully leverage the potential of AI technologies and drive innovation across various sectors of the economy.
Canada’s AI Ecosystem Shows Promise Amidst Global Challenges
Despite the lag in AI adoption, Canada’s AI ecosystem demonstrates resilience and growth in key areas. The report highlights that the number of AI patents filed by Canadian inventors surged by 57% in 2022-2023, surpassing the 23% average growth in other G7 countries. This significant increase underscores Canada’s innovative capacity in AI development and its potential to become a global leader in AI-driven intellectual property.
The startup landscape also presents a positive outlook. Canada saw the establishment of 46 new AI companies in 2022-2023, maintaining the same growth pace as the previous year. This stands in contrast to the global AI sector, which experienced a 16.6% decline in new company formations during the same period. Additionally, Canada ranked third globally in AI venture capital investments per capita in 2022, reflecting strong financial backing for AI startups and a vibrant entrepreneurial ecosystem.
The report also sheds light on the importance of diversity, equity, and inclusion (DE&I) in AI initiatives. A notable 68% of surveyed organizations emphasized DE&I considerations in their AI projects, signaling a commitment to creating more equitable and inclusive AI solutions. This focus aligns with global trends emphasizing the need for diverse perspectives in AI development to mitigate bias and ensure ethical outcomes.
Responsible AI practices remain a critical area for improvement. Only 52% of organizations reported “always” or “sometimes” adhering to AI cybersecurity risk-management and human-centered design principles, while just 35% followed AI model lifecycle documentation principles. These findings highlight the need for Canadian organizations to strengthen their commitment to ethical AI practices to build trust and ensure long-term success.
To address the gap in AI adoption, the report recommends that Canadian organizations focus on identifying high-value use cases that address critical business challenges. Collaboration across industries and sectors is also essential to drive responsible AI development and implementation. Developing a comprehensive AI strategy aligned with broader business objectives will help organizations maximize the benefits of AI technologies.
Investing in internal AI capabilities and upskilling employees is another key recommendation. By building a workforce proficient in AI technologies, organizations can unlock the full potential of AI and foster a culture of innovation and experimentation. This approach will not only enhance competitiveness but also position Canada as a leader in the global AI landscape.
Conclusion
Canadian organizations are at a critical juncture in their AI adoption journey. While the country boasts a strong foundation in AI research, talent, and innovation, the pace of implementation lags behind global counterparts. Key statistics reveal that only 26% of Canadian organizations have launched AI implementations, and investment intentions, while positive, fall short of global averages. Concerns about ethical risks, such as bias and data quality, are prevalent, with 86% of organizations expressing these worries. However, Canada’s AI ecosystem shows promise with a 57% surge in AI patents, 46 new AI companies established, and strong venture capital investments. To maintain competitiveness, Canadian organizations must focus on responsible AI practices, strategic investments, and fostering innovation. By addressing these challenges, Canada can fully harness AI’s potential and secure its place as a global leader in the AI landscape.
Frequently Asked Questions
1. What percentage of Canadian organizations have implemented AI?
Only 26% of surveyed Canadian organizations have launched one or more AI implementations, compared to 34% globally.
2. How do Canadian AI investments compare globally?
55% of Canadian organizations planned to increase AI investments, below the global average.
3. What are the main ethical concerns about AI in Canada?
86% of organizations are concerned about AI’s ethical risks, primarily potential bias and low-quality results.
4. How is Canada performing in AI innovation?
Canada saw a 57% increase in AI patents and 46 new AI companies in 2022-2023, outpacing global growth.
5. What is the importance of DE&I in Canadian AI initiatives?
68% of organizations consider DE&I important in AI projects, aligning with global trends to mitigate bias.
6. What steps can Canadian organizations take to improve AI adoption?
Organizations should identify high-value use cases, collaborate across sectors, develop comprehensive AI strategies, invest in internal capabilities, and foster innovation.
