Generative AI could do plenty for Canadian businesses, but too few are trying out the technology, according to a data-heavy new report from the Canadian Chamber of Commerce. Here’s what you need to know. 

The state of play: Just nine per cent of firms surveyed have used generative tools, with another five per cent planning to start shortly. But 73 per cent haven’t so much as considered it.

The trend lines follow truisms of technology adoption. Larger firms were more likely to test the technology: 29 per cent of firms with more than 100 workers either employ it or plann to, compared to 15 per cent with fewer. Newer companies picked it up more easily, with 18 per cent trialling generative AI; the rate was just 12 per cent among businesses established 11 or more years ago.

Following the typical path of adoption for new technologies, the chamber estimates it could take until 2030 before a majority of Canadian firms use tools that produce text, images or code. That would put the country behind competing economies, the report warns.

The data: The chamber’s Business Data Lab (BDL) drew on Statistics Canada’s survey of business conditions, which polled 13,327 companies in January and February. That makes it a wider and more up-to-date snapshot of AI adoption than other widely cited markers. (Amazon sponsored the chamber’s study).

In the way: Firms say they’re avoiding generative AI because they lack either the workers or the capital to use it. Some 35 per cent cited the need to hire staff with the right technical skills, while 33 per cent said they can’t afford new tools. 

The report recommends companies start small, piloting generative AI and measuring the savings or revenue increase. It also calls for governments to fund programs to upskill workers and help firms figure out how to use the tech. 

The federal government’s latest $2.4-billion AI outlay does include $200 million for AI adoption in sectors like health care and manufacturing, as well as $50 million to train workers displaced by the technology.

The human touch: Canadians are more likely than people in other countries to distrust AI, and workers the world over worry it’ll take their jobs. 

But just 13 per cent of businesses surveyed told StatCan they’re trying generative tools in hope of automating tasks and replacing employees. Some 46 per cent said they hope to increase automation without cutting positions. (Firms in agriculture, forestry, fishing, real estate and professional services were most likely to be seeking cuts).

The bottom line for business: “GenAI is a generational opportunity to boost productivity, when our performance is certainly headed in the wrong direction,” said Patrick Gill, senior director of BDL. The technology is also increasingly cheap and easy to use. “Every small business can immediately pilot and experiment.”