Canadian CEOs turning AI gains into growth

Canadian business leaders have mostly accepted that artificial intelligence produces tangible outcomes. Now, their focus is on ensuring these outcomes are lasting.

According to a recent EY-Parthenon Canada survey, 82 per cent of Canadian CEOs say they can now assess AI return on investment with reasonable or greater confidence. This signals that the technology has moved from an experiment to an enterprise priority.

A survey conducted between August and September 2026 gathered insights from 50 Canadian CEOs in financial services, industrials, consumer health, and technology. Half of these executives are channeling AI-driven productivity gains into future growth, innovation, or transformation, while 22 percent are allocating these gains to workforce reskilling and capability development.

“The challenge is no longer whether AI can increase productivity,” said Shane Dunn, managing partner of EY-Parthenon Canada. “It’s how effectively organizations can hold on to those gains and use them to reinvest in the next wave of Canadian business growth.”

Productivity Gains Are Real, But Not Always Captured

For 40 percent of the surveyed CEOs, the most evident sign of productivity improvement is increased output without additional staff or capital investment.

Over the past year, 46 percent of CEOs identified process redesign and automation as the primary drivers of productivity gains, slightly ahead of AI-enabled tools and applications, which 44 percent cited as key contributors.

However, 22 percent of respondents noted that their productivity gains are being absorbed by organizational complexity, regulatory demands, or new work requirements, preventing them from translating into tangible value.

Legacy technology and outdated operating models were the most significant barrier, with 36 percent of CEOs pointing to them as the main obstacle to turning efficiency into measurable business performance.

This issue is particularly pressing in Canada’s wealth management and financial services sectors, which are among the most exposed to AI globally. The pressure to convert AI ambition into operational results has intensified considerably in 2026.

EY-Parthenon’s findings align with broader research, including a June 2026 CGI report. This report revealed that enterprise AI readiness trails adoption rates, with 52 percent of executives citing talent shortages as a major hindrance to program delivery and execution.

Growth Strategy Shifts Toward Partnerships

The survey highlights a shift in Canadian executives’ growth strategies. While 48 percent still consider mergers and acquisitions in the next 12 months, this interest has dropped from 62 percent in May 2026, a 14 percentage point decline.

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In its place, appetite for strategic alliances has surged. It grew from 32 per cent to 62 per cent over the same period. Joint venture interest climbed 12 percentage points to 44 per cent.

AI Is Underpinning Transaction Decisions

AI is increasingly used in deal-making. Among CEOs applying the technology to transactions, 60 per cent use it for market and competitive intelligence. 50 per cent use it for risk assessment and compliance reviews. 48 per cent use it for financial analysis and valuation.

Despite this, 46 per cent of surveyed companies remain in the piloting phase of AI adoption for transaction evaluation. This suggests that the integration of AI into deal-making is still maturing.

Looking ahead, 68 per cent of CEOs believe that within three years, skills shortages will represent a larger barrier to growth than access to capital. Another 58 per cent expect AI to have a greater impact on employees’ roles and how work is organised than on reducing the overall workforce size.

The EY-Parthenon Canada CEO Outlook Survey fall 2026 is based on responses from 50 Canadian CEOs surveyed in August and September 2026.