Canadian Business Leaders Planning to Double Down on AI Investments in 2025: IBM Study
- 83% of IT decision-makers across Canada reported progress on their AI strategies in 2024
- More than half of Canadian respondents (56%) plan to increase AI investment in 2025
- Despite limited return on investment (ROI) so far, Canadian organizations are betting on AI in the long term, prioritizing innovation and productivity gains over traditional financial savings
Toronto, ON (Jan. 15, 2025) – Canadian companies surveyed are investing in AI for the long term, with a growing interest in using open-source tools to drive ROI and innovation going forward, according to a new study commissioned by IBM.
The study of more than 2,400 IT decision makers (ITDMs), conducted by Morning Consult and developed in collaboration with Lopez Research, revealed that 83% of Canadian respondents report making progress in executing their 2024 AI strategy, with 42% already seeing positive ROI from their AI investments. The data reveals that Canadian businesses are using a combination of buying or leasing AI tools from vendors (65%), using an open-source ecosystem (57%) as compared to in-house development (42%).
“This is a crucial year to pivot on AI adoption in Canadian organizations and our success hinges on strategic investments across models, platforms and supporting our people,” said Deb Pimentel, President, IBM Canada and General Manager, IBM Technology Canada. “This study underscores the importance of open-source platforms, high-quality data, and a well-defined AI strategy to enhance productivity. We’re committed to partnering with clients and partners to accelerate their AI strategies.”
More than half (56%) of Canadian respondents indicate they will increase their AI investments in 2025, while planning to leverage open-source ecosystems (41%), hire specialized talent (41%), evaluate models (43%) and use cloud managed services (49%) to optimize AI implementation.
“As organizations begin to implement AI at scale, many are placing greater stock in success metrics such as productivity gains, in part because traditional hard-dollar ROI have yet to show up on the balance sheets,” said Maribel Lopez of Lopez Research. “Yet, they continue to rapidly advance their AI strategies, with no sign of slowing down. Companies seem to now recognize the value of defining specific use cases and optimizing AI projects. They are leveraging hybrid cloud strategies and open source to drive AI innovation and deliver financial returns.”
Key Canadian findings include:
Companies are betting on AI for the long term
- 83% of Canadian ITDMs surveyed reported that their company has made progress in executing its AI strategy.
- 42% Canada respondents reported positive ROI from AI investments compared to the global average of 47%.
- ROI is not necessarily the primary driver of AI investments at Canadian organizations and the lack of short-term ROI is not discouraging companies. 39% of Canada respondents reported that AI investment was equally innovation-driven and ROI-driven, with only 7% reporting their strategy was exclusively ROI-driven.
- 25% of Canadian respondents identified ‘more rapid innovation’ as the most important metric, followed by ‘productivity time savings’ and ‘faster software development’ with 21% each. While monetary savings (16%) and short time to trouble shoot issues (17%) are considered less important ROI measurements.
- In Canada, companies are planning to use more cloud managed services (49%), evaluating models (43%) and using more open source (41%) and hiring specialized talent (41%).
Organizations remain committed to expanding their AI investment, with open-source emerging as a key priority for 2025
- 2025 will kick off with at least half of of AI pilots fully launched for organizations in Canada. 31% Canadian ITDMs responded 41 to60% of their AI pilots would have fully launched by the end of 2024.
- 46% Canadian ITDMs indicated their organizations started between 11 and 20 AI pilots in 2024 compared to 51% globally
- Open source is becoming a key priority in Canada , with close to 47% of Canadian ITDMs stating that 25 to 49% of their company’s current AI solutions or platforms are based on open-source.
Data quality and integration are the most common obstacles for organizations implementing AI.
- ‘Data quality and availability’ is identified as the most common obstacles for Canadian organizations (49%) moving from AI pilots to full launch. This is followed by scalability issues (47%) and integration with existing systems (44%).
- Additionally, when implementing AI, the biggest challenges for Canadian organization are technology integration (27%), lack of AI expertise (27%) and lack of AI governance (25%).
To access the full study, click here.
Study Methodology
Morning Consult conducted a survey from October 30 to November 13, 2024, among a total sample of 2,413 IT Decision Makers (ITDMs) in the US, Canada, Mexico, Brazil, UK, France, Germany, Spain, India, Singapore, Indonesia, and South Korea. The interviews were conducted online, and the data is unweighted. Respondents are employed at companies with 101 employees or more, serving in director-level or higher roles within a technology role, with decision-making authority over at least one of the following: management of business consultants/consulting services, purchasing for IT products, or purchasing for business consulting services.
About IBM
IBM (NYSE: IBM) is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
Source: IBM