Almost half of adopters reported full integration of generative AI across core operations and workflows, outpacing the national average
MONTREAL, Oct. 30, 2024 /CNW/ - More than three quarters of Quebec organizations have implemented generative artificial intelligence into their operations, with nearly half of adopters achieving full integration, new KPMG research shows.
In a recent KPMG in Canada survey of 123 Quebec-based organizations, 76 per cent said they have adopted generative AI – higher than the national adoption rate of 61 per cent and the highest rate in Canada.
Quebec organizations also reported a higher level of integration of generative AI compared to respondents across the country. Almost half (46 per cent) of Quebec adopters strongly agreed that their organization has fully integrated generative AI across core operations and workflows – significantly higher than the national average of 36 per cent.
Nine in 10 (92 per cent) Quebec respondents described the technology as extremely or very important to their competitive advantage (vs. 89 per cent nationally).
"The rapid adoption of generative AI among Quebec businesses is impressive, and the fact that the technology is being used more widely within organizations is a testament to the province's bold business leadership, as well as a vibrant and supportive AI ecosystem," says David Marotte, KPMG in Canada's Leader of Data and Artificial Intelligence in Quebec.
Half of Quebec respondents said their organizations are using generative AI to monitor and ensure compliance with regulations – the most frequently cited use case. Other common uses include automating employee tasks through copilots (37 per cent) and generating marketing materials (30 per cent).
Just over seven in 10 (72 per cent) of Quebec organizations said generative AI is a top investment priority for their organization, slightly lower than the national average of 75 per cent, but Mr. Marotte says that's likely because more Quebec organizations have already made investments in the technology than peers across the country.
"Quebec organizations recognize the transformative potential of generative AI on their organizations, and they're prioritizing investments in the technology because they want a competitive edge," he says.
"But it's not enough to simply adopt generative AI – organizations need to understand its full capabilities and have a comprehensive strategy for how to apply those capabilities across their operations effectively. That's how businesses will get the most bang for their buck from their generative AI investments."
Just over one quarter (28 per cent) of Quebec respondents agreed strongly that their organization has a clear understanding on the value that generative AI will bring to their business, and they know how to realize that value, while 51 per cent agreed somewhat (compared to the national average of 26 per cent and 51 per cent, respectively).
"There's still a lot of potential value for Quebec organizations to tap into when it comes to generative AI, so organizations need to make sure they have the right skilled talent and resources to help support that," Mr. Marotte notes.
Measuring ROI
When it comes to measuring their return on investment in generative AI, half of Quebec organizations said improved profitability is their preferred ROI measure, followed by increased productivity (41 per cent). Nationally, the trend is reversed, with 51 per cent of respondents across Canada citing improved productivity as their preferred ROI measure, followed by improved profitability (47 per cent).
Six in ten Quebec respondents said information technology (IT) is the top functional area they're planning generative AI investments in the next three to five years (vs. 55 per cent nationally), while almost nine in 10 (86 per cent) expect a return on their generative AI investments within the next five years (vs. 88 per cent nationally).
Key survey highlights:
- 86 per cent of Quebec respondents expect to see a return on their generative AI investments within the next five years (vs. 88 per cent nationally)
- 38 per cent expect ROI in 1-3 years (38 per cent)
- 20 per cent said 6 months-1 year (28 per cent)
- 28 per cent said 3-5 years (22 per cent)
- 60 per cent of Quebec organizations said information technology (IT) is the top functional area they're planning generative AI investments in the next three to five years (vs. 55 per cent nationally)
- 47 per cent said research and development (44 per cent nationally)
- 37 per cent said engineering (25 per cent)
- 30 per cent said strategy (26 per cent)
Top challenges
One of the biggest challenges in implementing generative AI is understanding and adoption among employees - something 78 per cent of Quebec respondents cited as very, mostly or somewhat challenging – four percentage points higher than the national average.
Ethical challenges ranked second, with three quarters of Quebec respondents citing issues such as biased data sets, privacy, accountability, transparency, intellectual property and misinformation concerns as challenging their AI implementations (vs. 76 per cent nationally).
Mr. Marotte recommends the following strategies for organizations to overcome workforce and ethical challenges:
- Designing and implementing robust employee education, training and upskilling programs that are flexible and agile enough to keep pace with advances in generative AI
- Tighter alignment between technology and C-suite leaders, board directors, employees and even third-party vendors to ensure AI strategies are executed effectively
- Implementing a strong risk management framework and guardrails with clearly defined 'do's' and 'don'ts' to prevent misuse
- Constant education, experimentation, innovation, collaboration and communication among all stakeholders within the organization
About the KPMG in Canada Generative AI Business Survey
KPMG in Canada surveyed 123 Quebec—based business owners and executives between August 15 and September 26, 2024, using Sago's premier business research panel. Of the total respondents, 76 per cent had adopted generative AI at their organization. Sixty-seven per cent of respondents identified as CEO, President, Chairperson or C-Level executives such as CFO or COO; 16 per cent identified as senior level vice president or director. Thirty-two per cent helm companies with $500 million to $699 million in annual revenue; 13 per cent have between $700 million to $999 million; and 22 per cent have $1 billion or more. 53 per cent were from privately held companies and 47 per cent were publicly traded.
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:
Roula Meditskos
National Communications and Media Relations
KPMG in Canada
(416) 549-7982
[email protected]
SOURCE KPMG LLP
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