Canada's next productivity gains will depend on leadership, not technology investment alone, BDO Canada finds

New report shows technology investment alone is not translating into productivity gains, with leadership and operating model redesign critical to progress.

TORONTO, Sept. 10, 2026 /CNW/ -- 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.

"Canadian businesses recognize the need to improve productivity and are investing in the technologies that can help them do it. Investing in technology alone, however, will not deliver the gains Canada needs," said Jeff Chapman, Managing Partner, Advisory, BDO Canada. "The bigger challenge is turning that investment into meaningful change. In an increasingly competitive and uncertain environment, leaders need to make deliberate choices about how their businesses operate, invest, and adapt."

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.

"Canada's productivity challenge is ultimately a leadership challenge. There is no single technology investment that will solve it. The organizations that move ahead will be those whose leaders are prepared to rethink how work gets done, build greater adaptability into their businesses and make difficult decisions in the face of uncertainty," said Chapman.

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.

About BDO

BDO helps businesses do more. We offer an integrated suite of accounting, assurance, tax and advisory services grounded in deep industry knowledge. With an understanding of domestic and global business needs, we work alongside our clients to help them turn complex problems into compelling results.

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

BDO is the brand name for the BDO network and for each of the BDO Member Firms.

About the Angus Reid Data

These findings are from a survey conducted by BDO Canada from March 31^st to April 3^rd, 2026, among a representative sample of n=520 online adult Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of ±4.30 percentage points, 19 times out of 20.

SOURCE BDO Canada

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