Canada’s AI readiness has dipped in 2024, with only 7% of organizations fully prepared to deploy AI, down from 9% last year, according to Cisco’s latest AI Readiness Index. While the urgency to adopt AI remains high, Canadian businesses face challenges in areas like infrastructure, governance, and data integration.
Cisco’s survey of 300 Canadian businesses reveals a paradox: 96% report increased urgency to adopt AI, driven largely by top executives, yet 67% of organizations are falling behind in readiness. Although 92% have an AI strategy or one in development—far above the global average of 61%—progress is hindered by siloed data, talent gaps, and cultural resistance.
Key findings show significant investment shifts, with nearly half of respondents planning to allocate 20%-50% of their IT budgets to AI within the next 4-5 years. Current AI spending is focused on cybersecurity, IT infrastructure, and customer experience. However, only 15% of organizations have the necessary GPUs to meet future AI demands, and 85% report data silos as a barrier to unlocking AI’s full potential.
Despite these challenges, optimism remains high: 84% of Canadian businesses believe AI will outperform expectations within five years. Companies must now focus on executing AI strategies, improving data management, and fostering a culture of innovation to maximize long-term benefits.
