New research shows Canadian businesses are investing in AI, but data quality, governance, workforce readiness and transformation challenges are limiting impact
TORONTO, July 21, 2026 /CNW/ -- RSM Canada LLP ("RSM") – a leading global provider of consulting, tax and assurance services – today released the RSM Middle Market AI Survey 2026: U.S. and Canada, finding that Canadian companies continue to trail U.S. counterparts in AI integration, transformation and investment returns, despite high levels of investment.
The survey of 1,030 senior business leaders across Canada and the U.S. found that AI adoption is accelerating among Canadian firms with annual revenues of $30 million to $1 billion. Across the full survey sample, 86 per cent of Canadian and U.S. organizations have partially or fully integrated AI into their operations, while 97 per cent report satisfaction with their AI investments. More than half, 54 per cent, say AI investments have exceeded ROI expectations, and 84 per cent expect AI spending to increase next year.
However, the Canadian findings point to a more cautious and less mature AI landscape. While 69 per cent of Canadian organizations report partially or fully integrating AI into operations, this trails the 89 per cent of U.S. firms reporting similar levels of integration, illustrating that Canadian organizations are still earlier in the AI adoption curve.
The findings come as the federal government accelerates its focus on AI adoption, trust and sovereignty through the recently announced 'AI for All' strategy, which prioritizes helping businesses move from AI experimentation to scalable, responsible execution.
"Canadian businesses recognize that AI has quickly become a non-negotiable core business capability," said Sonya King, management consulting director at RSM Canada. "But the data shows many organizations are still working through the foundational issues that determine whether their organization is set up for AI to create real value: data quality, governance, workforce readiness and the ability to measure ROI. The opportunity for Canada is significant, but companies need to move from isolated use cases to disciplined, enterprise-wide transformation."
AI spending and ROI are promising, but U.S. firms are further ahead
Though 84 per cent of respondents expect their AI spending to increase next year, findings suggest U.S. firms are further ahead in translating AI investments into measurable returns, with 57 per cent reporting their investments have so far exceeded expectations, compared to just 43 per cent in Canada.
Canadian firms also appear more cautious in how they are scaling AI, particularly when it comes to moving beyond pilots and establishing the infrastructure required for repeatable returns. Notably, 62 per cent of U.S. respondents said their firms would be investing $1 million or more in AI in the current fiscal year, compared to 41 per cent of Canadian respondents.
For Canadian companies, the findings point to a critical next phase: improving measurement, strengthening data foundations and ensuring AI investments are aligned to clear business outcomes.
Canadian firms trail U.S. peers in AI integration and transformation
The survey suggests Canadian companies are not standing still on AI, but rather are taking a more measured path than U.S. organizations. Canadian firms are more likely to be in earlier stages of adoption, while U.S. firms report higher levels of full or partial integration.
Canadian respondents are also less likely than U.S. respondents to describe their AI strategies as transformational. Instead, many Canadian organizations remain focused on near-term business value and incremental improvements.
Key findings include:
- 15 per cent of Canadian respondents describe their AI approach as transformational across the enterprise, compared to 18 per cent of U.S. respondents.
- 69 per cent of Canadian organizations report partially or fully integrating AI into operations, approximately 20 percentage points lower than U.S. respondents.
- 43 per cent of Canadian respondents say their organization is focused on implementing AI where it delivers clear value today.
The findings suggest Canadian organizations are prioritizing practical use cases, but may be slower to redesign operating models, workflows, customer experiences and workforce structures around AI.
"Canadian companies are taking a pragmatic approach to AI, and that can be a strength if it is paired with clear strategy and strong governance," added King. "The risk is that a focus on incremental gains alone may leave organizations behind as competitors begin using AI to reshape entire functions and business models."
AI passed the Test. The Enterprise Needs to Scale the Rest
While adoption is widespread, organizations continue to face challenges of scaling AI initiatives across the enterprise. The survey suggests that the biggest barriers are no longer about whether to invest in AI, but whether organizations are operationally ready to make AI work at scale.
Among organizations reporting moderate or limited pilot success, the leading barriers to scaling AI include:
- Data quality issues (53 per cent)
- Integration challenges (47 per cent)
- Unclear ROI (33 per cent)
- Security and compliance concerns (33 per cent)
Across all respondents, data quality and availability issues remain the top inhibitor to AI deployment (34 per cent), followed by security and privacy concerns (30 per cent), legacy systems integration (28 per cent), and talent and skills gaps (28 per cent).
The survey also points to a growing disconnect between leadership ambition and organizational readiness. Eighty-five percent of respondents agree that executive leadership is more enthusiastic about AI than employees, while 88 per cent believe their workforce size and composition will look fundamentally different within the next two to three years because of AI. At the same time, 91 per cent expect humans and AI systems to work together as integrated teams during that timeframe.
Those findings suggest that AI transformation will require more than technology deployment. It will require sustained change management, clearer workforce strategies, and stronger alignment between leadership expectations and employee readiness.
While 67 per cent of organizations say they apply AI governance controls before pilot or production stages, the findings indicate that governance will become increasingly important as AI moves from isolated use cases into core business processes. Organizations that strengthen governance early will be better positioned to manage risk, build trust and scale AI responsibly
The Next Deduction: Tax Shows AI Progress
For the first time, the survey examined AI adoption within organizational tax functions. Among respondents:
- 83 per cent say their tax function currently uses AI tools.
- 45 per cent are pursuing AI-enabled tax planning and optimization use cases.
- 45 per cent are using or planning AI for tax compliance monitoring and reporting.
- 41 per cent are applying AI to tax data extraction and validation.
- 98 per cent expect AI to affect the nature of tax work within the next two to three years.
The findings suggest tax leaders increasingly view AI as both an efficiency tool and a strategic capability that can enhance decision-making, improve compliance processes and help teams focus on higher-impact activities.
"AI is reshaping how tax departments operate, creating opportunities to improve efficiency, enhance insights and allow professionals to focus on more strategic work," said King. "Realizing that value requires more than adopting AI tools. Tax functions need reliable data, integrated systems and professionals who can apply both technical tax judgment and AI-enabled insight. Ultimately, the next phase of adoption of AI will be defined by how effectively organizations embed AI into the functions, workflows and decisions that drive business performance."
Full report
For more details on the survey's findings, the full report can be found here.
Survey methodology
The RSM Middle Market AI Survey 2026: U.S. and Canada was conducted from March 5 to 16, 2026, among 1,030 respondents, including 827 in the U.S. and 203 in Canada, from a sample provided by Big Village Insights.
Respondents were mid-level managers or higher who have at least some influence over technology investment decisions at middle market organizations, defined as those with annual revenue of $30 million to $10 billion in the U.S. or $30 million to $1 billion in Canada, excluding government and nonprofit organizations, or U.S. financial institutions with $500 million to $500 billion in assets under management.
All participants represented organizations that currently use AI, with adoption ranging from piloting to full AI integration. The margin of error is ±3.1 percentage points at the 95 per cent confidence level. Totals may not sum to 100 per cent due to rounding and multi-select questions.
About RSM Canada
RSM empowers middle market companies worldwide to take charge of change. The clients we serve are the engine of global commerce and economic growth. Our unique middle market perspective makes RSM the natural choice for growth-oriented, internationally active organizations seeking relevant insights and tailored, innovative solutions for a complex and changing world. With a global reach spanning more than 120 countries, we instill confidence in a world of change by bringing the full power of RSM to make a lasting impact on our clients, colleagues and communities.
RSM Canada LLP provides public accounting services and is the Canadian member firm of RSM International, a global network of independent assurance, tax and consulting firms. RSM Canada Consulting LP provides consulting services and is an affiliate of RSM US LLP, a member firm of RSM International. For more information visit rsmcanada.com, like us on Facebook and/or connect with us on LinkedIn.
SOURCE RSM Canada

FleishmanHillard on behalf of RSM Canada, Guinevere O'Coin, 226-203-5884, [email protected]
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