Productivity in the deep

All the way down to rise up

AI in particular is dominating the field, with 78 per cent of Canadian CEOs identifying it as a top investment priority, outpacing the global average of 71 per cent. But the real differentiator isn’t technology; it’s how organizations prepare their people to work alongside technology.

Advantage: Canadian firms lead in AI governance and ethics (26 per cent vs. 20 per cent globally) and, as noted, they are prioritizing investment in workforce upskilling.

These investments are positioning Canadian companies to leverage AI for competitive advantage and drive industry growth. And though, at 69 per cent, they’re slightly behind the global average of 74 per cent in feeling confident in their ability to keep pace with AI development, they’re open-eyed about the potential benefits of increased diversity of skills and capabilities, increased efficiency and productivity through automation and enhanced decision-making and data analysis.

Bridging the digital skills gap and investing in lifelong learning are top priorities, with 83 per cent of Canadian CEOs agreeing that skills development is essential to future productivity. Nearly a third (29 per cent) cite the skills gap as their biggest challenge, underscoring the importance of building a future-ready workforce.

No surprise, then, that Canadian CEOs are more likely than their global peers to prioritize talent development and responsible technology adoption. This is reflected in their slightly higher investments in workforce upskilling and AI readiness (25 per cent vs. 21 per cent globally) and employee wellbeing and mental health (14 per cent vs. 10)—clear signals of a commitment to building resilient organizations.

Canadian organizations are also leveraging innovation and sustainability not just to meet regulatory demands but to differentiate themselves in the market. CEOs are more likely to engage with regulators and policymakers on innovation (59 per cent vs. 53 per cent globally), and 78 per cent believe AI can help reduce emissions. By integrating continuous improvement into business strategy and forming strategic partnerships, Canadian leaders are positioning their companies as champions of sustainable growth—just what the country needs at this pivotal moment.

What could bury them? They say shortfalls around cybersecurity and digital risk; acquiring and retaining digital talent or failing to reach their upskilling objectives; and complying with complex regulations.

The stakes on cybersecurity, for starters, have never been higher. Forty per cent of Canadian CEOs cite cybersecurity as a key area for increased investment, slightly above the global average. And with 97 per cent expressing concern about fraud, identity theft and cyber-attacks, it’s clear that productivity gains are counterproductive if they come at the expense of business disruption, reputation damage and loss of trust.

Leaders are particularly focused on AI-related cyber risks, investing to safeguard their organizations and their customers. But only 16 per cent of Canadian CEOs (vs. 20 per cent globally) expressed confidence in their employees’ ability to make the most of AI, including in cybersecurity preparedness and response. Compounding the challenge, only 17 per cent (vs. 20 per cent globally) say their organization is equipped to provide the upskilling necessary for employees to make the most of AI in the first place. This, of course, is why investment in just these issues is high on their list of priorities.

As for regulatory compliance, it’s another longstanding source of frustration for Canadian CEOs, much like productivity itself. The issues are, to a large extent, intertwined. Recent legislation like Bill C-5 is meant to reduce the regulatory burden, at least for projects deemed to be in the national interest. And it’s expected that here, too, AI will do much of the work.