Most Canadian businesses are investing heavily in new technology to boost productivity but failing to properly train their employees to use it effectively, according to new research from KPMG.
A survey of 250 business leaders found that 63 per cent say their employees aren’t using new technologies effectively, limiting returns on technology spending despite recent productivity gains.
The findings come as Canada recorded productivity improvements in the last two quarters, though still trailing gains made in the United States over the same period.
Training gaps hold back tech benefits
Nearly nine in 10 companies surveyed say they’re investing in employee training, but more than half admit they don’t spend enough on workshops or continuous learning opportunities. Another 56 per cent say they lack the internal resources needed to implement technology effectively.
“Investing in new technology tools and platforms can do wonders for an organization’s productivity by streamlining processes, workflows and tasks,” said Stavros Demetriou, partner and national leader of KPMG in Canada’s People and Change practice. “Unless Canadian organizations undertake effective employee education and adoption plans, their people will barely scratch the surface on what the technology can do to make them more productive, and our gap to the U.S. and others will continue to widen.”
The survey was conducted in response to ongoing trade tensions with the United States, as Canadian companies seek ways to improve efficiency and competitiveness.
AI expectations vs. implementation challenges
Three-quarters of respondents believe artificial intelligence will solve their productivity challenges, but the same proportion admit they underestimated the difficulties of implementing new technologies like AI.
“There’s a common belief that digitally transforming your company is primarily a technology upgrade exercise, but the reality is that technology implementation is just one part of a journey,” Demetriou said. “Digital transformation is just as much about advancing and elevating the workforce.”
Nearly 88 per cent of business leaders say they need better processes to encourage workers to use new technologies, including case studies and incentives.
Poor training methods limit results
Organizations often don’t understand the full capabilities of their technology investments, leaving employees unprepared to maximize benefits, according to Megan Jones, national HR and workforce transformation lead at KPMG in Canada.
“In some cases, organizations provide full training, but it’s too technical or poorly delivered,” Jones said. “Effective training and upskilling need to be targeted, relevant, engaging, and frequent. Much like exercising consistently to build muscle, technology training must happen regularly to make the workforce stronger and more agile.”
Cultural barriers to innovation
Almost 87 per cent of respondents acknowledged their companies could do better at creating cultures that encourage employees to share ideas and take risks.
Jones recommends providing incentives for employees to experiment with technology and explore new applications. She suggests regular workshops where employees can explore AI tools and develop solutions.
Generational divide in tech adoption
Most respondents (86 per cent) hope younger, more digitally-savvy employees will help their companies adopt new technologies more easily, including AI, data analytics, and quantum computing.
However, Lewis Curley, a partner in KPMG’s People and Change practice, warns against excluding older workers from digital transformation efforts.
“If an organization is looking to implement AI, they must engage the entire workforce right from the beginning,” Curley said. “If some employees don’t feel like they are part of the journey, they might disengage from the process, lose trust in AI, or worry that the technology will replace them.”
Survey methodology
KPMG surveyed 250 business leaders across all industry sectors between May 9 and May 20, 2025. Companies ranged from $10 million to over $1 billion in annual revenue, with 52 per cent privately held and 28 per cent owned by private equity firms.
The research focused on actions companies are taking to improve operations amid ongoing trade tensions with the United States.
