New research from the IBM Institute for Business Value (IBV) reveals that Canadian organizations are accelerating AI adoption, but governance, workforce readiness and accountability are struggling to keep pace. The findings, based on two global studies surveying 2,000 CEOs and 2,000 C-suite technology leaders, highlight a growing disconnect between AI ambition and organizational foundations.
AI Adoption Outpacing Governance
While 90% of Canadian CEOs report embedding AI across multiple workflows and 80% believe they are deploying AI at the pace needed to achieve business objectives, only 43% of AI initiatives have delivered their expected return on investment over the past two years.
“Canadian organizations are still figuring out how to scale AI responsibly,” said Manav Gupta, Vice President and CTO of IBM Canada. “What we’re seeing is a growing gap between the speed of adoption and the governance, operating models and workforce readiness needed to support it. Closing that gap will be critical to realizing AI’s full value and staying competitive.”
AI Agents Set to Surge
Canadian C-suite technology leaders expect an average of 1,189 AI agents to be deployed by 2027, a 36% increase from today. This rapid shift from experimentation to daily operations underscores the urgency of building proper oversight.
Yet only 9% of Canadian tech leaders feel fully prepared for this coming wave of AI deployment. More than two-thirds (68%) say they are accountable for AI systems they do not fully control, while nearly three-quarters (73%) report that AI adoption is outpacing their IT governance capabilities. Half (50%) of Canadian CIOs and CTOs now cite security and compliance concerns as their primary barriers to scaling AI effectively.
Workforce Readiness a Critical Challenge
The CEO research points to a human challenge as AI use expands. 80% of Canadian CEOs agree that AI success hinges more on employee adoption than the technology itself. By 2028, CEOs anticipate that over half (53%) of their workforce will require upskilling for current roles, and nearly a third (29%) will need to be entirely reskilled for new roles.
Scaling AI Responsibly
Some Canadian organizations are already adapting their technology foundations to support rapid AI innovation. “We design modular architectures so components can evolve as technology advances, without breaking the overall system,” said Boris Alexandre, CIO North America, Airbus, Canada. “That approach allows us to absorb rapid innovation while supporting products with decades-long lifecycles.”
The IBM studies underscore that while Canadian CEOs are pushing ahead with AI, the lack of governance, security, and workforce planning could undermine returns and competitiveness.
