The IT Nerd

Canadian organizations are investing in AI, automation, and digital transformation, but many are still struggling to translate those investments into meaningful productivity gains, according to new research from BDO Canada.

BDO Canada’s Productivity Paradox 2026: How leadership will determine Canada’s future productivity gains finds that 45% of Canadian organizations are experimenting with AI without achieving meaningful ROI, while only 18% are actively embedding AI into workflows and operations.

Economic uncertainty is adding to the challenge. Nearly one-third (29%) of organizations report delaying major investments as leaders contend with rising costs, revenue volatility, workforce pressures, regulatory complexity, and other business risks.

Based on a survey of 520 Canadian business leaders conducted by Angus Reid, the report finds that Canada’s next productivity gains will depend less on how much organizations invest in technology and more on how effectively leaders redesign how work gets done.

Technology investment is accelerating, but transformation is lagging

The report identifies a widening gap between technology experimentation and organization-wide transformation.

While AI and other digital tools can help employees complete individual tasks more efficiently, those gains do not automatically translate into stronger organizational productivity. Legacy operating models, including layered approvals, fragmented ownership, siloed functions, and slow decision-making, can limit the benefits of new technology, and create operational friction.

BDO says organizations need to shift the productivity conversation from technology adoption to operating model redesign, with a greater focus on measurable business outcomes.

The report explores how economic uncertainty is reinforcing a more cautious approach to transformation, with some organizations waiting for clearer returns or more stable conditions before committing to significant change.

It also highlights that, rather than waiting for uncertainty to subside, organizations can use this period to simplify processes, modernize decision-making, and build more adaptable operating models.

Moving from activity to productivity

BDO’s report outlines several priorities for leaders seeking measurable productivity improvements, including identifying high-friction workflows, redesigning processes from first principles, reallocating resources toward higher-value activities, improving access to data and operational intelligence, and building greater adaptability across the organization.

It also examines how these productivity challenges are playing out across manufacturing and distribution, financial services, real estate and construction, and private equity, where organizations face different business pressures but a common need to move beyond isolated technology initiatives toward practical operational change.

From awareness to action

Productivity has moved higher on the agenda for Canadian businesses as economic uncertainty, workforce pressures, rising costs, regulatory complexity, and accelerating AI adoption reshape the competitive environment.

BDO says awareness is no longer the primary challenge. Most organizations understand the importance of modernization and the risks of standing still. The challenge is translating that understanding into organizational change quickly enough to create an advantage.

The organizations best positioned for the next era of productivity will not necessarily be those that invest the most in technology, but those that most effectively redesign work, empower their people and adapt as conditions change.

Read Productivity Paradox 2026: How leadership will determine Canada’s future productivity gains.

BDO Canada today announced a partnership with Workday, Inc. (NASDAQ: WDAY), the enterprise AI platform for HR, finance, and IT. As a Workday Sales and Services Partner, BDO will combine its business advisory and Human Resources Technology & Transformation expertise with Workday’s leading platform to help organizations modernize HR, finance and planning, accelerate digital transformation, and create greater business value.

Organizations are navigating increasing operational complexity, evolving workforce expectations and growing demand for better business insights. Together, BDO and Workday will help organizations simplify operations, improve decision-making and build a stronger foundation for long-term growth.

Through its Human Resources Technology & Transformation practice, together with specialists across finance, technology, and advisory, BDO provides end-to-end support across the transformation journey, from strategy and roadmap development through implementation, optimization and ongoing advisory services. The partnership further strengthens BDO’s growing ecosystem of strategic technology alliances, helping clients access integrated solutions that connect technology with business strategy.

Through the partnership, organizations can access advisory, implementation and optimization services across Workday Human Capital Management (HCM), Financial Management and Adaptive Planning, helping connect people, finance and planning to improve visibility, strengthen decision-making and support long-term growth.

For more information about BDO’s Workday services, see here.

As Canada moves to close its national AI adoption gap, new research from BDO Canada finds nearly half (46%) of Canadian business leaders are experimenting with AI without achieving meaningful ROI.

Only 18% are actively embedding AI into workflows and operations, according to BDO Canada’s AI Vision Report: Past the pilot to the agentic future of work. BDO says the findings point to a second-stage challenge for Canadian organizations: identifying the readiness gaps that limit value, then building the governance, workforce capability and operating discipline needed to scale AI responsibly. For business leaders, this is a movement away from number of pilots, to whether those efforts are improving decisions, managing risk and creating measurable value.

AI Vision Report: Past the pilot to the agentic future of work explores how organizations can move beyond isolated AI pilots toward governed, enterprise-wide adoption. It outlines how leaders can connect AI initiatives to clear business outcomes, accountable decision-making, and measurable value as AI moves from stand-alone productivity tools into more integrated, multi-step workflows.

The report also found that 27% of Canadian business leaders believe AI will have minimal impact on their organization over the next four years–a finding BDO says may point to a visibility gap as AI becomes increasingly embedded into enterprise software, workflows and decision-support systems.

From adoption to responsible scale

BDO says organizations need to scale AI in a way that creates measurable value, manages risk and helps people adapt to new ways of working.

The findings come as businesses begin preparing for agentic AI systems that can support multi-step work, coordinate information across platforms and move teams toward more integrated workflows.

As these capabilities become more common, BDO says organizations will need to treat AI as an operating-model change, not simply a technology deployment. Scaling safely and effectively will require clear governance, ownership, workforce enablement, adoption planning and measurement tied to business outcomes.

According to Gartner, by 2028, one-third of enterprise software applications are expected to include agentic AI capabilities, up from less than 1% in 2024. BDO says this shift will put greater pressure on organizations to build the foundations for responsible scale now, including governance, workforce fluency, workflow integration, and measurement tied to business outcomes.

Informed by BDO’s own AI adoption journey

BDO’s perspective is informed by its own AI adoption journey across its national firm, including the firm’s Client Zero approach to testing, learning, and scaling AI responsibly within its own operations. Through investment in workforce enablement, governed experimentation, workflow integration, and responsible AI practices, BDO has developed practical lessons that inform its work with clients.  

Read BDO Canada’s AI Vision Report: Past the pilot to the agentic future of work.

About the report
AI Vision Report: Past the pilot to the agentic future of work is a BDO Canada report examining how Canadian organizations can move from AI experimentation to responsible, enterprise-wide adoption. The report draws on survey of 520 Canadian business leaders who are members of the Angus Reid Forum commissioned by BDO Canada, along with BDO’s experience helping clients connect AI initiatives to business outcomes, governance, workforce readiness and measurable value.

Today, BDO Canada announced the launch of its Defence Cyber Readiness Accelerator, a new advisory service designed to help businesses navigate the Canadian Program for Cyber Security Certification (CPCSC). 

As the CPCSC, a new federal cybersecurity framework for defence procurement, introduces baseline cybersecurity requirements for organizations handling sensitive but unclassified defence information, BDO Canada’s Defence Cyber Readiness Accelerator is designed to help organizations prepare.

The offering supports businesses in assessing readiness, identifying compliance gaps, and building practical pathways toward certification and long-term procurement eligibility. As part of BDO Canada’s broader defence-sector offering spanning compliance, capability, and capital, the Accelerator is intended to help strengthen supply chain trust and support wider participation in Canada’s growing defence industry.

A narrowing window for Canadian suppliers

As the federal government begins integrating CPCSC requirements into upcoming defence procurement opportunities, organizations across the supply chain are facing increasing pressure to prepare. Companies that are unable to demonstrate the appropriate level of cybersecurity readiness may risk losing access to future contract opportunities and could face challenges maintaining eligibility for existing defence-related work.

Built on BDO’s defence sector experience

BDO Canada already serves more than 250 clients across the Canadian defence ecosystem, including aerospace manufacturers, robotics innovators, infrastructure firms, logistics providers, and technology suppliers. The firm’s defence industry team brings together cross-functional expertise across cybersecurity, regulatory compliance, government incentives, deal advisory, manufacturing, infrastructure, and public sector, giving businesses access to a single team that understands the full defence-entry lifecycle.

Today, BDO Canada is proud to be named as a Major Player in the IDC MarketScape: Canadian AI services 2025 Vendor Assessment (doc #CA51802124, September 2025).

BDO believes this recognition reflects the firm’s strong industry knowledge and proven track record of delivering AI solutions that are scalable and tailored to the needs of Canadian businesses. The IDC MarketScape report for Canadian AI services provides both a quantitative and qualitative look at how vendors perform in the market, helping technology buyers choose the right partners for AI-driven transformation.

With over 80 offices and more than 4,500 professionals across Canada, BDO combines industry knowledge in areas like manufacturing, financial services, energy, and infrastructure with hands-on experience to deliver AI solutions that create real impact for clients, including many of the country’s Fortune 100 companies.

BDO accelerates AI adoption for its clients through proprietary tools, strong partnerships, and sector-focused solutions. Backed by alliances with Microsoft, AWS, Google Cloud, Salesforce, Snowflake, and Databricks, and supported by a global network spanning 160+ countries, BDO Canada provides end-to-end AI services that combine technical expertise with practical, client-focused outcomes.

To learn more about BDO Canada’s Practical AI solutions, visit: Practical AI solutions to drive ROI growth.