Canadian businesses lag in AI adoption despite personal use by executives
Only 8% of Canadian firms say they use AI significantly in core operations, even as two-thirds of business leaders report using AI tools in a typical week, according to the Bank of Canada’s December 2025 Business…
Source: Bank of Canada · August 24, 2026 at 11:01 PM · AI-assisted report
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KUALA LUMPUR, 25 AUGUST 2026 —
Canadian firms’ slow AI adoption may curb Malaysia’s tech push, survey shows
Market Impact
KUALA LUMPUR, Aug 25 – Canadian businesses are still in the early stages of adopting artificial intelligence (AI) despite growing individual use, a Bank of Canada survey shows, a trend that could temper Malaysia’s ambitions to become a regional AI hub.
The findings, drawn from the central bank’s December 2025 Business Leaders’ Pulse (BLP) survey, reveal that while 68% of Canadian business leaders use AI tools weekly, only 8% have integrated AI into core operations. Half report low or moderate adoption, while 28% have no plans to adopt AI in 2026, citing limited relevance to their work.
The survey distinguishes between individual AI use—often for drafting documents or data analysis—and broader operational adoption, which has yet to gain traction. Advanced applications like robotics and machine learning remain rare, though businesses plan to expand their use over the next three years.
Size, sector and location shape AI uptake AI adoption varies by company size, industry and region. Larger firms with 20 or more employees are more likely to expect job cuts due to AI over the next three years, while smaller businesses lag in both adoption and projected impact.
Capital spending tells a similar story. About 70% of firms see no material change in AI-related investments in 2026, but nearly 40% expect higher spending within three years—with one in eight anticipating a large increase. Sectors like manufacturing and agriculture, where AI-enabled machinery is emerging, are driving this shift.
Limited near-term impact on jobs, but risks loom
The survey suggests AI’s immediate effect on employment is minimal, with only 11% of firms expecting positive impacts and 23% foreseeing reductions over three years. Larger companies are more pessimistic, signaling potential labour market adjustments as automation spreads.
Bank of Canada researchers caution that while AI’s current footprint is small, its rapid evolution could accelerate adoption. “AI is being adopted at a much faster rate than the internet or personal computers were,” the report notes, warning that effects may emerge faster than historical tech cycles.
Regional implications for Malaysia’s digital economy Malaysia has positioned itself as a Southeast Asian leader in digital transformation, targeting AI and automation to boost productivity in manufacturing, services and agriculture. The Bank of Canada’s findings suggest that while individual Malaysian firms may experiment with AI tools, large-scale operational integration could take years—mirroring Canada’s experience.
Industry observers say Malaysia’s push for AI hinges on infrastructure, talent and incentives. “Adoption will depend on whether businesses see clear ROI,” said a Kuala Lumpur-based tech analyst. “Canada’s slow start shows that even awareness isn’t enough—execution matters.”
The survey’s insights come as Malaysia’s government rolls out initiatives like the Malaysia Digital Economy Blueprint and AI-focused grants. Yet, with only 8% of Canadian firms using AI in core operations, Malaysian policymakers may need to address gaps in digital literacy and access to advanced tools to avoid a similar lag.
Stakeholders weigh in on long-term outlook Bank of Canada researchers emphasize that AI’s economic impact is still unfolding. “The largest effects are likely to come from changes in how businesses operate and make employment and capital spending decisions,” they write, noting that productivity gains may materialize only as firms refine their AI strategies.
Canadian businesses themselves are divided. While some see AI as a productivity booster, others remain skeptical. “Many don’t see AI as relevant to their work,” the survey states, highlighting a cultural and operational barrier to adoption.
For Malaysia, the lesson may be twofold: invest in AI literacy and infrastructure now, but temper expectations for rapid transformation. The Bank of Canada’s data suggests that even in advanced economies, AI integration is a gradual process—one that requires patience, targeted investment and clear use cases.
Policy watch: AI’s role in inflation and growth
The Bank of Canada monitors AI adoption closely, as its economic effects could influence inflation and productivity. While current impacts appear limited, the central bank warns that rapid advancements could reshape labour markets and capital flows sooner than expected.
Malaysia’s central bank, Bank Negara Malaysia, has not released comparable data, but the parallels are clear. As AI adoption accelerates globally, policymakers in both countries face a balancing act: fostering innovation without overestimating its near-term effects.
For now, the message from Canada is cautionary. AI is here to stay, but its full potential remains untapped—both in advanced economies and in Malaysia’s emerging digital landscape.
Related: Bank Negara Malaysia · Kuala Lumpur