Canadian business leaders expect agentic AI to reshape the workforce

With more than half (52 per cent) of respondents saying they expect AI to match human level reasoning in the next three to five years, organizations are increasingly emphasizing creative thinking (46 per cent), problem-solving skills (44 per cent) and adaptability (43 per cent) when hiring entry-level talent.

“We’re moving into a phase where AI isn’t just supporting work in the background but is now actively shaping how organizations think about talent. That’s changing the way employers assess people, with more weight being placed on how individuals apply judgment, think critically and operate in environments where AI is embedded into day-to-day work,” says Lewis Curley, a Partner in the People and Change practice at KPMG Canada. “At the same time, it reinforces the importance of human skills. According to our survey data, 65 per cent of business leaders say social and interpersonal capabilities now matter more than technical expertise, which highlights that success will come from how effectively people combine those strengths with AI.”

Canadian businesses struggling with ROI more than their global counterparts

While 70 per cent of Canadian organizations say AI is delivering meaningful business value, only three per cent have achieved measurable returns on their AI investments. The primary obstacle respondents identified is a workforce skills gap. Globally, eight per cent of respondents have successfully realized a return on their AI investments.

Another hurdle business leaders are facing is uneven adoption of agentic AI in the workplace. In Canada, 31 per cent of employees show resistance to the technology, compared to 16 per cent globally. Over half (51 per cent) say trust and ethical concerns are to blame for employee hesitation, and nearly 40 per cent say it's due to job security worries or a lack of confidence in their AI skills and capabilities.

To close the gap, Mr. Curley says businesses need to do more than simply train employees to work with AI agents, they also need to be deliberate about how human-AI collaboration will drive value at their organization.

“When organizations are looking at upskilling their workforce, they must have a clear picture of how their people can use AI agents in ways that deliver meaningful impact on the business,” says Mr. Curley. “A skilled employee can build an agent to automate tasks and get work done faster, but if it’s not being used on work that produces results, companies won’t see the returns they’re looking for.”

As they prepare employees for a new way of working, leading organizations are establishing clear protocols for when and how to use AI agents. Other top actions include creating sandbox environments where employees can practice interacting with the tools and developing role-specific guidelines for effective collaboration and delegation.

“The technology isn’t the problem, it’s whether the workforce is equipped and confident enough to use it effectively. When people don’t understand how to work alongside these tools or don’t trust them, adoption stalls, and so does the return on investment,” says Mr. Curley. “Agentic AI is changing how we work, and in this new environment all employees become managers, responsible for overseeing and delegating work to agents. The organizations getting ahead are investing just as much in developing their workforce’s management abilities as in their AI literacy skills. Everyone now needs to know how to allocate work, assess quality and give effective feedback, because that’s what ultimately unlocks value.”

About the survey

KPMG International’s Global AI Pulse is a quarterly global study capturing the perspectives from 2,110 C-suite and business leaders representing organizations in 20 countries, territories and jurisdictions. The research was conducted between February 19 and March 27, 2026. Of the 306 Canadian respondents, 28 per cent reported annual revenues of $50 million to $99 million; 28 per cent reported revenues of $100 million to $499 million; 20 per cent reported revenues of $500 million to $999 million; 12 per cent reported revenues of $1 billion to $4.9 billion; eight per cent reported revenues of $5 billion to $19.9 billion and five per cent reported revenues of $20 billion or more.