The vital role of AI literacy on the path to productivity

Organizations across Canada are no longer asking “if” they should adopt AI, they’re now focused on “how” to make it work for their people and their business. In fact, 73% of Canadian CEOs say they are planning to invest 10-20% of their budgets in AI over the next 12 months (KPMG 2025 CEO Outlook Report.)

For many, scattered pilots and experimentation have evolved into more coordinated, enterprise-wide strategies, with 31% of Canadian businesses saying they have fully integrated generative AI solutions across their core operations, while another 32% say they have achieved partial adoption. Yet adoption alone does not guarantee value generation. Without intentional alignment between AI deployment and workforce readiness, organizations risk inconsistent outcomes and stalled productivity gains. Supporting your workforce through transformation is at the heart of successful AI adoption and the quest to maximize productivity.

This is where AI literacy becomes essential. AI literacy refers to the ability of employees to understand, interact with, and effectively use AI tools and concepts in their roles. Among those using AI at work, 83% believe they need to improve their skills to use AI effectively (2025 Generative AI Adoption Index), underscoring the growing urgency for structured, role-aligned learning. When employees grasp how AI can enhance their work and feel confident using these technologies, they become active participants in transformation rather than passive recipients of change.

As organizations move from experimentation to strategic implementation, AI literacy becomes the connective tissue that links technology investments to real productivity gains. In Canada, where trust and literacy in AI lag behind global peers, with the country ranking 44th out of 47 countries for AI literacy and training (KPMG International), progress will only come when organizations intentionally build the skills, mindsets, and support systems their people need to thrive in an AI enabled workplace. Read on to uncover what might be holding your organization back and how to chart the way forward.

What’s hindering impact

Canadian businesses face several persistent barriers to building true AI literacy across their workforce. For one, many are still operating with legacy mindsets and processes, digitizing existing workflows without fundamentally reimagining how AI can transform work. This limits the potential for employees to learn, experiment, and integrate AI meaningfully into their roles.

Another major challenge is the disconnect between leadership expectations and the realities faced by staff. Leaders may expect rapid, transformative results, but frontline teams and middle managers often lack the time, support, or clarity needed to adapt and meet those expectations. Training is frequently generic and not tailored to specific roles or business contexts, leaving employees unsure how AI applies to their day-to-day work. In fact, fewer than half (48%) of Canadian employees who identify as AI users say their organization offers sufficient training on how to use AI effectively in their roles.

Generational divides also persist. Some employees trust AI too much, while others remain skeptical, and few receive guidance on how to use these tools responsibly and effectively. Without clear communication, targeted upskilling and robust governance organizations may face slow adoption of AI systems and processes, uneven progress, additional risk exposure, and missed opportunities to unlock productivity gains.

Where to start

Before launching AI literacy initiatives, organizations need to step back and clarify their strategic intent. The most effective efforts begin with a deep understanding of business priorities, workforce dynamics, and readiness for change. Leaders should ask:

What specific business outcomes do we expect AI to drive, and how will we measure success?
Which roles and functions stand to benefit most from AI, and where are the greatest risks or resistance?
How prepared is our organization culturally and operationally to embrace new ways of working?
What existing processes, data, and systems might need to be reimagined (not just digitized) to unlock AI’s full potential?
Where do gaps exist in trust, skills, or understanding, and what barriers could slow adoption?
What governance, ethical, and compliance considerations must be addressed to ensure responsible use of AI?

By considering these questions up front, organizations can avoid common pitfalls, prioritize the right investments, and ensure that subsequent actions, such as training, piloting, and scaling are aligned with their broader strategy and workforce needs.

What you can do – A productivity blueprint

Once you’ve clarified your strategic priorities, mapped out where AI can deliver the most value, and identified readiness gaps, you can move forward with targeted actions to build AI literacy and drive productivity:

Design role-specific learning journeys: Develop training programs that reflect the unique needs and opportunities of different teams and functions, ensuring relevance and immediate applicability
Launch pilot projects in priority areas: Start with use cases that align with your business goals and have strong leadership support, allowing teams to experiment and demonstrate tangible benefits
Empower champions and early adopters: Identify and support individuals who can model effective AI use, share practical insights, and help build momentum across the organization
Integrate AI into daily workflows: Move beyond theory by embedding AI tools into routine processes, making adoption seamless and reinforcing new skills through real work
Establish feedback and measurement loops: Track progress against your defined outcomes, gather input from employees, and use data to refine your approach and scale what works
Reinforce governance and communication: Maintain transparency about how AI is used, address ethical and compliance concerns, and keep the focus on business impact and workforce empowerment.

By connecting these actions directly to your strategic groundwork, you ensure that AI literacy initiatives are purposeful, sustainable, and positioned to deliver value.

What NOT to do

Don’t make AI the objective. Link its adoption to desired business outcomes
Don’t rely on generic, one-size-fits-all training
Don’t neglect ongoing change management
Don’t ignore the need to meet employees where they are in their AI journey.

In summary

AI literacy is the linchpin for unlocking productivity in today’s workplace. Which is why organizations that invest in tailored training, agile change management, and establish robust governance frameworks are better positioned to realize the full value of AI. The journey requires intentional strategy, cross-functional collaboration, and a commitment to supporting employees at every stage.

Megan Jones

Partner, National Workforce Transformation Leader 

KPMG Canada

mail
call

How KPMG can help

KPMG Canada has extensive experience helping clients with workforce transformation, change management and technology adoption strategies. We work closely with organizations to develop tailored AI literacy programs aligned with business goals and workforce needs. Our specialized teams facilitate cross-functional engagement, design governance frameworks, and guide process redesign to unlock the full potential of AI.

With ongoing support and resources for continuous learning, KPMG Canada helps clients navigate the complexities of AI adoption, build trust, and maximize productivity. Whether you’re just starting your AI journey or looking to scale adoption, KPMG Canada is ready to help you realize the full value of AI in your organization.