Canadian firms shift focus from hours to AI for productivity gains

Canadian business leaders see a continuing gap between productivity levels and workplace fulfilment, according to new survey data that highlights continued challenges with hybrid work models and the integration of artificial intelligence technologies.

Productivity perceptions

The survey found that 94% of Canadian business leaders believe their organisations are productive, but only 54% classify them as very productive.

This perceived shortfall is prompting a redefinition of how success is measured in the workplace, with fewer executives relying on traditional activity-based metrics such as hours logged. Only 38% now use this measure to gauge productivity, while a majority place more weight on customer satisfaction (52%), efficiency (47%), and employee satisfaction (45%).

Despite these shifts, 49% of respondents say productivity feels like just a buzzword, and 52% report that the subject is often discussed without any notable changes being implemented. Additionally, 46% of business leaders say they feel burned out by persistent pressure to improve productivity, underscoring the need for effective solutions and practical change in working culture.

Hybrid work challenges

The report coincides with a trend of more Canadian employers requiring staff to return to the office for more days each week.

Many organisations are still adjusting to the realities of hybrid work, with ongoing friction points cited by leadership. The transition has led some leaders to rethink priorities and focus on outcomes over time spent at work.

"With more Canadian workplaces transitioning back to the office, they are at a turning point to ensure the shift translates into measurable progress," said Michelle Biase, President and Managing Director, HP Canada.

"There's a big difference between being busy and being productive and having access to appropriate technology empowers teams to achieve more with increased efficiency. Our research shows 72% of leaders believe that productivity would improve with the adoption of more role-relevant AI tools underscoring the untapped opportunity for organizations to enable meaningful work and outcomes critical to employee and business success."

Adoption of AI tools

Companies are showing interest in AI as a way to address productivity concerns. Seventy-two percent of leaders believe that more role-relevant AI tools could enhance productivity. However, more than half (55%) acknowledge that their companies have fallen behind in adopting modern technology and innovation. Although 89% provide employees with tools designed to support productivity, 54% remain sceptical about whether those tools are actually effective in generating measurable impact.

Within companies already using AI solutions, 92% say these tools help save time. The survey suggests there is an opportunity to use this reclaimed time to drive further collaboration and growth across hybrid teams, as organisations evaluate the effectiveness of their technology investments.

Preparing for future work

Business leaders are considering various strategies as they adjust to increased office attendance and stabilise new hybrid routines. Priorities include the use of AI to automate daily tasks, aligning technology and devices to specific job roles, supporting effective collaboration remotely and in-person, and maintaining robust security systems to build trust among employees and clients.

The research also highlights the importance of focusing on workflow optimisation and the potential benefits of integrating AI-powered solutions across day-to-day operations. Efficiency gains from streamlining processes and personalising tools could play a crucial role as organisations aim to support their workforce and maintain performance standards in a changing environment.

"There's a big difference between being busy and being productive and having access to appropriate technology empowers teams to achieve more with increased efficiency. Our research shows 72% of leaders believe that productivity would improve with the adoption of more role-relevant AI tools underscoring the untapped opportunity for organizations to enable meaningful work and outcomes critical to employee and business success."