Canada’s AI Moment: Building Productivity with Responsibility

This blog was provided by Deb Pimentel, President and General Manager, Technology, IBM Canada.

Imagine a bank launching a new digital platform without security checks. Customers might enjoy faster service—but at the cost of trust and compliance. The same principle applies to generative AI. It promises efficiency and innovation, but without responsible adoption, the risks can outweigh the rewards. Just as trust is foundational in banking, it must be central to how we adopt generative AI—especially as we seek to unlock new levels of productivity.

For Canadian businesses, this technology is a rare opportunity to address one of our most persistent challenges: productivity. As adoption accelerates, the question isn’t whether we use AI—it’s how we use AI responsibly, ensuring governance and trust keep pace with innovation.

According to the Conference Board of Canada, AI integration across sectors could boost labour productivity by 17.1% and generate up to $185 billion in economic value over the next two decades. That’s a transformative opportunity—provided we deploy AI with care and foresight.

Realizing this potential depends on how AI is being used in Canadian workplaces today. A recent IBM Canada study shows 79% of Canadian office workers use AI tools at work, yet only 25% rely on enterprise‑grade solutions. The rest rely on a mix of personal and employer tools (33%) or entirely on personal apps (21%). This growing use of AI tools without formal approval or oversight — known as Shadow AI —introduce serious  risks, including data leaks, compliance breaches, and loss of control over sensitive information. In fact, the 2025 IBM Cost of a Data Breach Report found that shadow AI added nearly CA$308,000 per breach in the past year.

While most office workers say AI boosts productivity, unsanctioned tools can undermine security and trust.

Across industries, Canadian organizations are proving what responsible AI adoption looks like. In financial services, AI-powered virtual assistants are handling millions of customer inquiries annually while maintaining strict compliance controls. In telecom, AI-driven testing tools have cut quality assurance cycles from hours to minutes. In retail, AI assistants are boosting consumer engagement and freeing staff for higher-value work, all under robust governance frameworks.

IBM itself serves as “Client Zero”, a strategic initiative to adopt its own technologies and AI solutions for internal transformation, before deploying externally. For example, IBM’s AskHR digital assistant has handled over 10 million interactions, automated 765,000 tasks, and resolved 94% of HR inquiries while reducing operating costs and creating new roles. This model shows AI’s potential to increase productivity and the role of governance in ensuring it is used securely and responsibly.

These examples show that AI can deliver measurable impact—when paired with strong governance.

To succeed, responsible AI practices must be embedded from day one.

• Transparency and explainability—Clearly communicate how AI systems make decisions and what data they use.
• Bias mitigation and data governance—Train AI models on clean, representative data and audit them regularly for fairness.
• Security and privacy safeguards— Protect consumer and business data at all times.

For small and medium‑sized enterprises, which represent the majority of Canadian businesses — adoption doesn’t have to be overwhelming. Starting small, such as automating a single process or using secure, cloud‑based AI services, can deliver quick wins while building governance into the foundation.

Another critical area is workforce readiness. AI isn’t about replacing human talent — it’s about augmenting it. Equipping employees with AI literacy and responsible decision‑making skills will position Canadian companies to attract and retain top talent.

Generative AI is a powerful tool—but only if deployed responsibly. Canada has the opportunity to build an AI-powered economy that is productive, inclusive, and trusted. The future is here. Let’s shape it together.