The Canadian respondents in the 2024 KPMG Global Tech Survey demonstrated a shift in overall maturity but are worried about the future impacts of technology—and, in particular, AI.
This year’s study surveyed over 2,400 technology executives across the globe, including 150 Canadian leaders. And while Canadian organizations are still more risk-averse than our global counterparts, it isn’t impairing our willingness to embrace technology and extract value from our investments, including AI.
There is acknowledgement both globally and in Canada that AI can transform industry, enhance efficiency, and create new business models and opportunities. The opportunity—and the challenge—is the ‘how’ to make it happen. Many organizations are relying on XaaS vendors to incorporate AI into their platforms using standard use cases; others are focused on internal exploration with developing proof-of-concept (POC) to test specific ideas (or a combination of the two).
Overall, Canadian respondents indicated they have a high degree of confidence in their decision-making process for technology investments, but that cybersecurity isn’t treated as seriously as it should be, and that risk aversion from senior leadership was sometimes problematic in moving forward. Overall, they were more pessimistic about the impact of external (geopolitical tensions and economic uncertainty) and internal factors (cybersecurity, tech overspend) than their global peers.
See below for an overview of the takeaways from the Canadian findings and a list of key considerations for Canadian tech leaders.
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Canadian data highlights
88% of Canadian technology leaders say it is difficult to keep up with the pace of change
Only 3% of respondents indicated there was no increase in profitability across all technology categories
Top technologies Canadian organizations are planning to invest in over the next year to support their ambitions
- XaaS technologies (including public cloud or multi-cloud)
- Cybersecurity
- VR / AR / XR (including Metaverse) and spatial computing
- Edge computing
- AI and automation (including generative AI)
- Data and analytics
- Web3 (including blockchain and tokenization)
- Modern delivery (including low code / no code)
- Quantum computing
Top challenges Canadian tech leaders see as most likely to slow down transformation efforts
- A risk-averse culture that is slow to embrace change
- Skills shortages within our organization
- Immature data management strategies
- Cybersecurity or privacy concerns
- Transformation fatigue
- Ineffective governance and coordination
- Compliance concerns
- Inability to agree on priorities or getting stakeholder buy-in
- Unaddressed tech debt blocking the path for new upgrades
0% of Canadian technology leaders said they have not implemented AI in any capacity
93% of Canadian respondents have indicated they have already seen an increase in profitability from implementing AI
Key takeaways
1. AI has gone from conceptual to value creation in just over a year
The explosion of AI from 2023 to 2024 is significant, with 0% of Canadian organizations indicating they had taken no action regarding AI—and many are already reporting a return on their AI investment. This is in stark contrast to last year, where almost a third (29%) of Canadian organizations hadn’t taken any action on AI.
The single successful strategy of dealing with change is not to fear and resist it, but to embrace it and use it to your advantage, employing your critical thinking skills in the process. If we could rephrase the famous saying, I’d go with: ‘Fortune favours the bold and the diligent.’
2. Canada lags behind our global counterparts in placing importance on AI governance policies
Lack of defined AI regulations and requirements in Canada is hampering investment and implementation due to uncertainty and fear of risks. It’s also hampering the speed of evolution and maturity of AI governance.
3. Transformation efforts are paying off in spades
In 2023, 35% of Canadian organizations indicated no increase in profitability across all technology categories. This year, more than 90% reported at least a 5% increase in profitability across all technology categories, though 66% indicated that keeping up with the pace of change was difficult.
The path to value is evolving. Capturing the ROI on technology investments extends well beyond the CIO—the magic happens when the visionaries in business areas collaborate with their technology counterparts to innovate and capture the power of AI.
4. Customer experience is no longer the top driver of transformation
Last year, customer experience and satisfaction was the primary driver of transformation initiatives. This year, clear business value based on successful testing and proof of concepts took the top spot, representing a major shift in priorities from last year. Regulatory and competitor pressures are also strong contributing factors to transformation initiatives.
5. The skills shortage and a risk-adverse culture were tied for the top barrier
Canadian organizations are still worried about being able to fully realize their technology goals with their current talent, and upskilling will likely be a large area of investment. In addition, 89% said that AI would cause significant restructuring of job roles and require major investments for upskilling.
Where does risk aversion come from? It comes from the unknown. Getting comfortable with risk starts with technology literacy at an executive sponsorship level. The organizations that will separate from the pack over the next year are those that have the courage to strategically embrace emerging technologies.
6. XaaS implementations show a clear return on investment
Everything-as-a-service was a top investment priority for 89% of Canadian organizations, while cybersecurity came in second at 70%. Canadian respondents valued the improved efficiency gains from implementing XaaS and its ability to accelerate other technology adoption, and 94% noted an increase in profitability from their use of XaaS technologies including multi-cloud and public cloud.
7. Cybersecurity is the top priority for data management improvements, followed by data governance
Canadian organizations appear to have a slight edge over their global peers when it comes to leveraging data for monetization or competitive advantage but are behind when it comes to data security and data accessibility (ensuring employees have the data they need to fulfill their roles).
Cyber is often viewed as a box-ticking exercise, but risk management should almost be instinctive and layered in from start to end—not stitched in as an afterthought. That starts with embedding the right security processes within the ecosystem, creating a security aware culture, establishing and enforcing accountabilities, and implementing a robust compliance framework.
Suggested considerations for Canadian technology executives
- How can we improve our decision-making process for technology investments to ensure consistent adherence and optimal outcomes?
- What steps can we take to fully embed cybersecurity within our organization?
- How can we create a culture of calculated risk?
- How can we improve data access for employees?
- How can companies better define and demonstrate ROI to counter the fear of overspending on tech?
- How can we manage the potential disruption caused by AI, such as restructuring of roles and upskilling initiatives?
- How can we address the concerns of employees regarding the impact of AI on their roles?
- What measures can we take to ensure a controlled and safe environment for AI experimentation and use?
Want to dive deeper into the 2024 Global Tech Survey findings, explore the full Global report below:
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