Canadian firms to boost AI investments significantly by 2025

A study commissioned by IBM reveals that a significant majority of Canadian IT decision-makers are planning to increase their investments in artificial intelligence (AI) in 2025.

The survey, conducted by Morning Consult with contributions from Lopez Research, involved over 2,400 IT decision-makers globally, including those from Canada, the UK, and several other countries. The findings indicate that 83% of Canadian respondents have reported progress in implementing their 2024 AI strategies, with 42% acknowledging a positive return on investment (ROI) from these AI initiatives.

Despite a slower rate of ROI compared to the global average of 47%, Canadian companies are focusing on long-term AI investments. They prioritise innovation and productivity improvements over immediate financial returns, with 39% of respondents indicating investments were equally driven by innovation and ROI.

Deb Pimentel, President, IBM Canada and General Manager, IBM Technology Canada, stated, "This is a crucial year to pivot on AI adoption in Canadian organizations and our success hinges on strategic investments across models, platforms and supporting our people. This study underscores the importance of open-source platforms, high-quality data, and a well-defined AI strategy to enhance productivity. We're committed to partnering with clients and partners to accelerate their AI strategies."

The study reveals that more than half of Canadian organisations (56%) plan to increase their AI investments in 2025. Strategies highlighted include leveraging open-source ecosystems (41%), hiring specialised talent (41%), evaluating models (43%), and employing cloud-managed services (49%).

Maribel Lopez from Lopez Research commented, "As organizations begin to implement AI at scale, many are placing greater stock in success metrics such as productivity gains, in part because traditional hard-dollar ROI have yet to show up on the balance sheets. Yet, they continue to rapidly advance their AI strategies, with no sign of slowing down. Companies seem to now recognize the value of defining specific use cases and optimizing AI projects. They are leveraging hybrid cloud strategies and open source to drive AI innovation and deliver financial returns."

Canadian organisations are also planning to use more cloud-managed services (49%) and emphasise the use of open-source solutions (41%). Notably, 46% of Canadian companies initiated 11 to 20 AI pilots in 2024, demonstrating a commitment to expanding their AI capabilities.

The challenges identified in the study include data quality and integration, highlighted by 49% of Canadian respondents as a key barrier when transitioning from AI pilots to full implementation. Scalability issues (47%) and integration with existing systems (44%) were also noted.

Among other challenges Canadian companies face when implementing AI are technology integration (27%), a lack of AI expertise (27%), and a lack of AI governance (25%).

The study's methodology involved online surveys conducted from October 30 to November 13, 2024, targeting IT decision-makers within firms employing over 100 staff and with director-level responsibilities or higher in technology-related roles.