Amid continuing concerns about an uncertain economic climate, how are Canadian companies managing their investments in tech? Keeping up and benefiting from it almost feels like a gamble.

A recent KPMG report surveyed 2,100 business leaders in 21 countries about their digital strategies – what technology transformations the companies have undergone and what role those investments play into their business targets. Over 50% of the participants were C-suite executives from across nine different industries: energy, education, financial services, government, healthcare, industrial manufacturing, life sciences, tech, retail and consumer packaged goods. And what the data highlighted about Canada is compelling.

Through the 150 Canadian respondents, the KPMG Global Tech Report 2023 revealed that a majority of the country’s organizations haven’t caught up with others around the world, with regards to implementing the use of artificial intelligence, machine learning, robotics, cloud, 5G, augmented reality, virtual reality, edge computing, cybersecurity and web3 technologies. Most, however, have plans to adopt those solutions by 2026.

The challenge Canadian leaders are facing today is not lack of will, but lack of investment. Seventy-six percent expressed that they were expected to do more in this space with less, an uptick from 67% who felt that way last year. But, as opposed to last year’s biggest obstacle – employee reskilling – this year sees governance buy-in as lagging.

Kathy Penner, a KPMG in Canada partner and national leader in technology enterprise solutions, said in a company press release, “Our survey found the main reason Canadian organizations are prioritizing certain technologies is to keep pace with market leaders that have already adopted them, but technology investments should never be made ‘because others are doing it’ – they need to be intentional, especially in an uncertain economic climate.” In other words, technology investments must be a part of the organizational strategy and directed at specific outcomes. Potential results to focus on, according to Penner, can include competitive advantage opportunities, cost containment, improving efficiency, advancing environmental, ESG agendas and improving cybersecurity.

When it comes to which type of technology is top-of-mind for Canadian C-suite professionals, 55% of respondents said that artificial intelligence and machine learning technologies remain the most important to their organizations for meeting short-term business goals (robotics came in second, and edge computing third). While that may be true, 31% lament that they can describe their company’s culture as risk-adverse. And a staggering 81% are convinced that they still need to help the board understand the potential of emerging technologies.

But a key insight that further promotes the business case is that while 57% of tech executives are feeling less confidant about investing in new technology due to economic uncertainty, 37% of Canadian leaders overall who committed to it in the last two years, are seeing an increase in profit – up 6% – due to digital transformations like data, analytics, AI and automation. These findings support Penners urging that to truly benefit from the capabilities of technological advances, organizations need to make sure their approach is sound and clear, and that their investment has specific targets.

How best to move forward then? KPMG says to outline possible technology investments against business priorities and what the company truly needs. Support seamless organizational collaboration instead of functional silos. Address foundational security frameworks as a way to cement trust with customers and clients when it comes to their data. Set up a comprehensive policy on the use of artificial intelligence and train employees. Have a clear understanding and a policy on how company data interacts with AI programs. And, most importantly, prioritize cross-organizational communication and transparency.