Forced to trim spending due to fallout from trade war as AI and quantum pose growing risks, a new KPMG survey finds
TORONTO, Oct. 29, 2025 /CNW/ - Canadian business leaders are calling for governments to establish "cyber firefighting teams" to help them combat increasingly complex cyberattacks that are now being powered by artificial intelligence and will likely be amplified by quantum computing in near future, finds new KPMG in Canada research.
Nearly nine in 10 named cyberattacks the greatest threat to their three-year growth plans, with 83 per cent concerned that they can't withstand current or next generation cyberattacks.
"As Canada becomes more reliant on digital infrastructure, the risks posed by cyberattacks are now just as serious as natural disasters like wildfires, floods, and tornados," says Hartaj Nijjar, National Leader of Risk Services and Cybersecurity at KPMG in Canada. "These attacks can come fast and without warning, often overwhelming even the best-prepared organizations. It only takes one major cyber incident to destabilize essential services, disrupt the economy, and erode public trust. For that reason, we need to prioritize collaboration between public and private sectors to build the right rapid-response capabilities and strengthen national resilience before the next crisis hits."
Key survey findings:
- 89 per cent of 501 Canadian business leaders want governments to create "cyber firefighting teams" to respond to incidents
- 86 per cent of business leaders believe the risk of cyberattacks is the greatest threat to their company's three-year growth plans
- 83 per cent worry about their ability to withstand both current and next generation cyberattacks
- 88 per cent are concerned nation-state actors are stockpiling encrypted data, using a 'harvest now, decrypt later' strategy, and will retroactively decrypt corporate, medical or defence data, including everything passed through AI models today, once quantum machines become powerful enough
Cyber firefighters
Even though over nine in 10 (91 per cent) business leaders are putting more money and resources into their ability to bounce back and resume normal operations after a cyberattack, the survey found most realize additional investment will be required. "Yet nearly three-quarters (74 per cent) are being forced to trim their planned investments due to higher costs arising from the ongoing trade war with the U.S., the survey finds. This leaves them exposed to the constantly evolving and relentless cyber risks, underscoring the need for coordinated support networks, shared intelligence, and joint response strategies within the business community," says Mr. Nijjar.
Nearly nine in 10 (89 per cent) business leaders believe that governments need to create cyber fire departments to help combat cybercrime in both the public and private sector, the poll findings show. Further, as many as 94 per cent expect the federal government to establish cybersecurity standards and guidelines and want all levels of government to make cybersecurity a top priority.
"The call for cyber first responders isn't just theoretical, it reflects a growing consensus that we need to act now," says Imraan Bashir, Partner and National Public Sector Cyber Leader at KPMG in Canada. "Business leaders see cyber risk as the biggest barrier to growth, and many worry about their ability to withstand the next wave of attacks. AI and quantum will redefine the threat landscape, but with the right investment in rapid response and resilience, we can turn fear into confidence and keep our digital economy thriving."
Better staff training needed
Business leaders are concerned their employees are susceptible to attacks and data breaches, with 84 per cent saying that cybersecurity is still a 'tick-the-box exercise' in staff training and not as fully embedded as it could be. This is up significantly from 71 per cent in 2024.
"Good cyber hygiene is the first line of defence against any type of breach or attack so it's crucial that this training is engrained among all employees," says Mr. Nijjar. "With attacks becoming more sophisticated, leaders need to embed cyber awareness into everyday culture, not just annual compliance. This means making training continuous, practical, and relevant so employees become the first line of defence, and not the weakest link."
To tackle concerns about the future cybersecurity risks, leaders are doing what they can to prepare by adopting digital keys resistant to AI and near-term quantum attacks, running annual cyber tabletop exercises and regular system audits. They are also increasingly using AI as a cybersecurity tool, with 89 per cent agreeing that it has been a game changer for their company.
Additional survey highlights:
- 91 per cent say they are investing more money and resources in cybersecurity and digital risks resilience, for example, their ability to bounce back and resume normal operations after a cyberattack
- 74 per cent say that due to increased costs related to tariffs, their company has reduced its cybersecurity budget
- 94 per cent expect the federal government to establish cybersecurity standards and guidelines
- 94 per cent expect all levels of government to make cybersecurity a top priority
- 88 per cent say their organization is extremely worried about cybercrime and cyber insecurity, that is, where employees or systems are susceptible to cyberattacks and data breaches
- 84 per cent agree that cybersecurity is a 'tick-box' in staff training and not as fully embedded as it could be, up from 71 per cent in 2024
- 91 per cent use AI as a cybersecurity tool
- 89 per cent agree that AI has been a game changer in cybersecurity for their company
About the KPMG Private Enterprise™ Business Survey
KPMG in Canada surveyed 501 business owners or executive level C-suite decision makers at Canadian companies between September 11 and October 2, 2025, using Sago's premier business research panel. Thirty-five per cent helm companies with more than C$500 million and less than C$1 billion in annual revenue, 23 per cent have between C$1 billion and C$20 billion, a quarter have more than C$300 million and less than $500 million in annual revenue and 15 per cent have between C$50 million and C$300 million in annual revenue.
About KPMG in Canada
KPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country.
The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see kpmg.com/ca.
For media inquiries:
Alannah Page
National Communications and Media Relations
KPMG in Canada
(306) 934-6255
[email protected]
SOURCE KPMG LLP
Share this article