Inside Canada: What Business Leaders Are Seeing Right Now

Why It Matters

The discussion underscores structural challenges and growth levers that will shape Canada’s competitiveness, influencing investment decisions and cross‑border strategies for U.S. and global firms.

Key Takeaways

• Over 80% of Canada’s trade is with the U.S., prompting diversification
• Only 29% of Canadian firms use AI at scale, lagging global average
• GDP growth hovers around 1%, with inflation just above 2%
• Talent gaps and succession planning top CEO concerns amid remote‑work shift
• Energy sector contributes ~10% of GDP; higher oil prices boost revenues

Pulse Analysis

Canada’s economic landscape is at a crossroads. While GDP growth steadies near 1% and inflation eases above the 2% target, the country’s trade profile remains heavily weighted toward the United States—over 80% of total commerce. Executives see this concentration as a risk, especially amid unpredictable geopolitical "gray‑swan" events, and are urging policymakers to accelerate diversification into Asian and European markets. At the same time, Canada’s status as the world’s fourth‑largest oil producer means rising global oil prices translate into a direct boost for a sector that contributes roughly 10% of national GDP, offering a buffer against broader volatility.

Talent and technology emerge as the twin pillars of future productivity. CEOs report that skill gaps, succession planning and the cultural shift to hybrid or remote work dominate boardroom agendas. Despite a highly educated workforce—about 65% hold university degrees—only 29% of Canadian firms have scaled artificial‑intelligence solutions, compared with roughly 45% globally. This lag hampers efficiency gains and underscores the urgency of upskilling programs that position AI as a collaborative "copilot" rather than a replacement. Regulatory red tape and inter‑provincial trade barriers further constrain infrastructure investment, prompting calls for streamlined project offices and clearer federal‑provincial coordination.

Looking ahead, the consensus is that Canada can leverage its abundant resources, strong banking governance and a culture of innovation to become both an energy superpower and a technology leader. The Conference Board’s role as a neutral convening platform is critical, offering CEOs peer insights on AI adoption, talent development and cross‑border opportunities. By fostering collaboration across sectors and borders, Canadian firms are positioned to boost productivity, attract global talent, and reinforce the country’s standing as a resilient middle power in the evolving global economy.