Microsoft´s latest Small and Medium-Sized Business Report signals a dramatic surge in artificial intelligence adoption across Canada’s SMB sector, with 71% of these companies now integrating artificial intelligence and generative technologies to enhance daily operations. Digital-native firms lead the charge with an impressive 90% adoption rate, showing that artificial intelligence-driven transformation has now expanded far beyond large enterprise circles and into the core fabric of Canadian commerce. The report also highlights how SMBs are using artificial intelligence for practical applications, including customer service chatbots, automated translation, task automation, and accelerating content creation—streamlining workloads and alleviating staffing and efficiency pressures.
The research shows this is not just an experimental phase: artificial intelligence has become central to business strategy. Sixty percent of Canadian SMBs now have a formal artificial intelligence strategy, and nearly half are actively rolling out solutions. Organizations report significant operational gains, with 70% citing improved efficiency and productivity, and 86% of decision-makers describing their artificial intelligence experience as positive. Further, 75% of surveyed SMBs plan to ramp up investments in artificial intelligence over the near term, and 63% are prioritizing generative artificial intelligence technologies—aligning local sentiment with global forecasts for explosive artificial intelligence spending. Despite this optimism, challenges remain, with 27% of respondents concerned about data privacy, cybersecurity, and the need for employee training. Uncertainty around regulatory and governance guidelines also poses obstacles, but a majority are addressing these issues through internal policy development and third-party collaboration, with Microsoft cited as the most common partner.
The sophistication of artificial intelligence adoption varies by business size and sector. Micro-businesses (fewer than 10 staff) focus on cost reduction and client acquisition, while medium-sized firms target cybersecurity, digital transformation, and advanced talent strategies. While 67% of SMBs are collaborating with technology providers and 60% believe their infrastructure is ready for artificial intelligence, half of respondents acknowledge that further shifts in company culture are necessary for full-scale implementation. Microsoft, alongside Canadian public and private stakeholders, continues to provide digital skills training, responsible artificial intelligence frameworks, and scalable infrastructure investment. Research for the report was conducted by Edelman through an online survey of 300 Canadian decision-makers across different industries and company sizes, providing insights into the drivers, hurdles, and real-world impact of artificial intelligence on the country’s SMB landscape.
