Small and medium-sized businesses (SMBs) in Canada have a substantial opportunity to accelerate productivity by investing in artificial intelligence, according to Bank of Canada’s Senior Deputy Governor, Carolyn Rogers. At a recent conference in Toronto, Rogers advocated for broader AI adoption among these businesses as a means to unlock economic potential and increase competitiveness. By leveraging AI technology, these businesses can streamline operations and enhance their service offerings. This stance comes amid increasing discussions on how technology can be a catalyst for economic improvement.
What previous trends highlight about AI adoption among SMBs?
The dialogue around AI adoption isn’t new. Reports from 2025 showed that SMBs across the United States were integrating AI to level the playing field with larger enterprises. Adopt an AI-first business model was seen as a way for smaller companies to bypass older, rigid systems and rival larger competitors. Furthermore, technology’s role in reducing the number of middle managers by allowing AI to handle tasks such as project planning and feedback collection has been highlighted. These trends underline the growing influence of AI across different sectors and its potential to transform SMB operations.
How can SMB participation in AI impact the Canadian economy?
In Canada, large firms are leading the AI investment wave, yet they’re unlikely to provide widespread economic benefits compared to smaller firms. Rogers emphasized that concentrated gains in big businesses might not translate into broader economic progress. Therefore, SMBs’ involvement is crucial for a widespread economic uplift.
“If all of the gains are concentrated in big firms, they aren’t likely to translate to gains across the economy,”
said Rogers, suggesting the need for smaller businesses to engage in AI initiatives.
Current statistics from the Verizon Business 2025 State of Small Business Survey indicate that a significant portion of SMBs are already integrating AI into their operations. Areas such as marketing, social media, and customer service are seeing particular AI investment. By employing AI, SMBs can improve their agility and streamline their workflows, potentially leading to increased productivity and growth.
A report by PYMNTS indicates a surge in AI engagement for consumer tasks, demonstrating societal trust and reliance on these technologies. Such trends might encourage Canadian SMBs to follow suit, recognizing that AI has been embedded into routine personal and professional activities, which may help build confidence among these businesses to adopt AI solutions.
Rogers urged SMBs to consider AI adoption not merely as an opportunity but a necessity for sustained economic growth and resilience. AI’s role in simplifying processes and reducing operational costs can allow SMBs to compete more effectively on a wider scale.
“The involvement of SMBs in AI could indeed translate to more dispersed and equitable economic gains,”
she added.
Canadian SMBs are in a position to harness AI technologies more comprehensively for delivering improved services and products to their clientele. With AI providing a platform for innovation, these businesses could experience a transformation in their operations, resulting in an economic contribution that large firms alone cannot achieve. The narrative of AI adoption is evolving, and SMBs can play a pivotal role in this phase.
