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The ongoing U.S. tariffs situation is widely covered in economic and political headlines, but one of its less-discussed casualties is the human resources (HR) department.

 

Although HR teams are not directly involved in trade negotiations or tariff enforcement, the consequences of tariff changes are creating an unexpected wave of challenges, from workforce disruptions to morale issues and talent management headaches.

 

It’s a situation, says Brad Ratz, Director of Growth Strategy and Customer Experience at H2R Business Solutions, has not gone unnoticed by companies like his that provide support to small and mid-sized businesses.

 

“It definitely shifts you from a proactive stance to a reactive stance as an organization,” says Brad, referring to the ongoing impact of tariffs and how businesses have had to adapt. “But I think in the last few weeks there has been some more stability.”

 

Tariffs, essentially taxes on imported goods, often lead to higher costs for raw materials, components, and finished products. For industries like manufacturing, automotive, electronics, agriculture, and retail, this has created enormous financial pressure. While executives and supply chain managers scramble to adjust pricing, sourcing, and operations, HR departments are left to manage the human side of the fallout.

 

Companies facing shrinking profit margins often respond with hiring freezes, layoffs, or restructuring. This leaves HR teams tasked with managing reductions in force, handling severance, conducting difficult conversations, and navigating legal risks—all while maintaining morale among the remaining workforce.

 

Assessment key for businesses

 

However, Brad says on the other end of the ‘doom and gloom’ side of the situation there has been an uptake in hiring as many companies capitalize on the ‘buy Canadian’ movement.

 

“As many companies are being impacted and may be modeling out some worst-case scenarios, we've got on the other side clients that say, ‘How do we even keep up with the amount of work that's being directed to us right now?’” says Brad, adding organizations must really start to think strategically when it comes to planning. “How do we navigate this uptick? Because the question then is how long is this sustainable?”

 

For companies forced to shift their strategies—such as relocating manufacturing out of tariff-affected countries—HR faces the complex task of redeploying talent. This might involve reskilling workers for new roles, managing transfers, or negotiating with unions. Retraining programs, once seen as long-term development initiatives, have become urgent necessities to keep pace with rapidly changing business needs.

 

Assessment, says Brad, is key when companies are faced with rapid changes.

 

“Take that pause and ask some questions and assess the landscape and what's happening. Once you've assessed, then it's time to start planning. What's best case scenario and what's worst case scenario?” he says. “I love the assessment piece because you’re acting off of real data and you're kind of eliminating some of that emotional stuff that's going to come in if you don't stop and do the assessment.”

 

 

Managers require support

 

Another hidden cost of the tariffs situation is employee anxiety. News of supply chain disruptions, rising costs, or customer losses spreads quickly through the workforce. Employees fear for their jobs, speculate about layoffs, and worry about the company’s future. Even if no cuts are made, morale can take a hit, leading to drops in productivity and engagement.

 

HR teams must invest time in internal communication to reassure employees, manage rumours, and maintain trust. They also need to support managers in having transparent conversations with their teams. In some cases, HR may introduce stress management programs or offer additional mental health resources to help employees cope.

 

“We've had a significant increase from a training and development side trying to equip leaders to help navigate the changes that are coming through this and support their teams,” says Brad, adding some smaller organizations may already have tools in place to assist. “If you do feel like your team is going to be affected in many different ways, what systems or tools do you already have access and available that can support our staff through this?”

 

Moving forward, companies need to recognize HR’s critical role in times of economic disruption. This means ensuring that HR leaders have a seat at the table during strategic planning, providing resources for employee support programs, and investing in workforce planning and training. Without this, the toll on morale, retention, and performance may far outlast the tariff wars themselves.

 

Speaking on a personal note, Brad says despite any shifts caused by tariffs, he is optimistic for the what the economic future holds.

 

“Canada is one of the largest economies in the world. On a global scale, we’re not small and there's lots of opportunity out there,” he says. “Typically, after any time of crisis, and I would classify this as crisis, that's usually when the largest level of innovation happens.”

 

 

Challenges faced by HR departments include:

 

Job security and layoffs

Tariffs can lead to declining demand in certain industries, potentially causing layoffs and hiring freezes. HR must develop strategies for managing workforce reductions while maintaining employee morale.

 

Reskilling and upskilling

As businesses adapt to changing market conditions, including tariff-related shifts in supply chains, HR may need to focus on reskilling employees for new roles.

 

Employee morale

The uncertainty surrounding tariff policies and their potential impact on jobs and the economy can negatively affect employee morale, leading to decreased productivity and engagement.

 

Compensation and benefits

Rising material costs due to tariffs can put pressure on company budgets, potentially requiring HR to adjust compensation structures and benefits packages to remain competitive.

 

Transparency and communication

HR leaders need to be transparent with employees about how tariffs may impact the business and provide support programs to help them navigate the changes.

 

 

Impact on healthcare costs

Tariffs could also lead to rising pharmaceutical costs, adding to the challenges already faced by HR in managing healthcare inflation, according to Businessolver.

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The collective strength of the Ontario Chamber network to advocate for businesses during one of the most turbulent economic junctions in Canadian history became a unifying theme at the recent Ontario Chamber of Chamber of Commerce AGM in Windsor.

 

The event – held April 24-26 and hosted by the Windsor Essex, Amherstburg and Leamington District Chambers of Commerce - brought together approximately 150 delegates representing 60 chambers provincewide to network, hear from economic leaders, and to debate policies that can create evidence-based solutions to benefit the business community and province’s economic growth.

 

“The annual AGM is a great opportunity for Chamber leaders to not only share ideas and best practices, but to find ways to navigate current economic upheavals created by U.S. President Donald Trump’s continued trade threats,” says Cambridge Chamber of Commerce President and CEO Greg Durocher, who attend the AGM accompanied by Board Chair Murray Smith. “Having a unified voice is pivotal, especially now, in helping to create the certainty businesses need.”

 

Drop in business confidence

 

It was a sentiment echoed by Ontario Chamber of Commerce President and CEO Daniel Tisch during his opening remarks at the conference, entitled Bridges, Not Barriers

 

He spoke about the immense stress business leaders are under due to staffing concerns and rising prices and referenced the OCC’s ninth annual Ontario Economic Report (OER) released earlier this year which showed a significant rise in business confidence over the course of 2024, climbing from a historic low of 13 per cent to 26 per cent by year’s end.

 

However, despite this improvement, confidence remains historically low and fragile, with 48 per cent of businesses expressing a lack of confidence in the economy. When U.S. tariff threats are on the table, business confidence dropped dramatically to just 15 per cent, almost erasing the last year’s gains, according to the OCC’s separate tariff survey in early February.

 

Tisch said business leaders are looking for assistance and guidance, noting the Chamber network is the best organization to take on that leadership role.

 

Trade clarity will come

 

“We can provide that platform and provide the clarity and collaboration and continuity they need to be successful, and that they deserve because we need them to help build our province and to create jobs and economic opportunity and the growth that we all want,” he said, adding Canada will eventually achieve some level of clarity when it comes to U.S. trade. “We don’t exactly know when, but we know that it’s going to be fragile and as long as the president (Trump) is in office there is no guarantee he will respect any (trade) deal that he signs because he didn’t respect the last one. We can’t put all our eggs in that basket anymore and have to diversify as a trading nation.”

 

Competitiveness was the underlying theme of two sessions at the AGM featuring a panel of experts, including Windsor Essex Chamber of Commerce President and CEO Ryan Donally, who spoke about the long-standing trading relationship between the U.S. and Canada. It was noted that 25% (approximately $320 to $390 million) of all trade between the two countries crosses the Ambassador Bridge daily.

 

Long-term strategies needed

 

“You can’t unscramble this egg since cross-border trade has been around for at least a century,” he said, adding Trump’s tariffs will cost thousands of jobs on both sides of the border before stressing the need for trade diversification and long-term strategies.

 

It was a sentiment shared by Luke Polcyn, Senior Executive, Development and Economic Transformation for the City of Detroit, who outlined the vibrant trading relationship between the two cities and the opportunity for cross-border partnerships in terms of innovation assets.

 

“This disruption (tariffs) is being done in our name but ask any SMEs on the U.S. side and they would tell you the system could be tweaked but not blown up,” he said.

 

A second panel of experts which focused on Ontario’s ‘competitive edge’ offered insights on how key sectors can navigate policy changes, and how the province can build on its future competitiveness.


“Our responsibility at the moment is to think long-term,” said panelist Jaipaul Massey-Singh, CEO of the Brampton Board of Trade, adding more could be done to commercialize innovation. “Let’s not let this crisis go to waste. It’s not all doom and gloom but a wakeup call.”

 

He stressed the need to hold decision-makers accountable to push for change, an opinion shared by a fellow panelist, Sueling Ching, President and CEO of the Ottawa Board of Trade.

 

“We must demand a continued collaboration of strategies,” she said. “Our new normal is change.”

 

Policies will help businesses

 

In effort to make changes, this year 36 policies were approved by the delegates covering a wide variety of issues that can directly affect businesses. These included  policies relating to education, healthcare, homelessness, mental health and addictions, transportation, infrastructure, and manufacturing. These policies now become entrenched in the Ontario Chamber of Commerce’s policy ‘play book’ to guide its ongoing advocacy work at Queen’s Park.

 

 

The Cambridge Chamber co-sponsored three policies which received support from delegates:

 

Create and Implement a Provincial Strategy to Address Homelessness, Mental Health and Addictions

  • This policy outlines several recommendations for the Province, including ensuring social services outreach teams are available as partners to police throughout Ontario to support marginalized individuals and improve province wide data collection and access for frontline services to enable better decision-making. Also, prioritize funding, program, and policy changes to better support those with complex mental health conditions that may pose a risk to themselves and others, and incentivize municipalities to develop more low barrier supportive housing solutions.

 

Cutting Administration for Ontario Physicians

  • This policy sets out several recommendations, including encouraging the Province to collaborate with physicians, healthcare administrators and stakeholders to set key performance indicators for administrative workloads and set targets based on industry benchmarks to ensure improvements in physician efficiency. It also calls for the prioritization of secure digital technology to reduce administrative burdens, and collaboration with the Ontario Medical Association and other healthcare organizations to implement proven strategies that reduce physicians’ workloads.

 

Ontario Government Assistance on Employment Land Assembly

  • This policy calls for the Province to financially assist municipalities with the purchase of land for major industrial and economic development projects. It also recommends funding support be provided for necessary infrastructure, such as roads, utilities, and servicing, to enhance the viability of potential employment lands to attract investors. As well, it recommends the need for regional partnerships and engagement with the private sector to optimize both existing and new employment land uses to ensure the land assembly efforts integrate with broader economic strategies. 

 

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A website is one of the most critical tools for attracting and retaining customers and is often the first point of contact when it comes to developing relationships between your business and potential clients. 

 

However, as technology and consumer expectations evolve, a website that was once cutting-edge can quickly become outdated. As a result, if your website looks like it was designed a decade ago, visitors may assume your business is outdated as well so a ‘reboot’ may be in order, says Aneesh Janardhanan, who operates White Space Studio Inc. which serves many clients in Waterloo Region.

 

“It’s one of the major mistakes many small businesses make. They think just having a website will give them customers,” says Aneesh. “But that’s not the real story since the internet is filled with millions of websites.”

 

Running a company that specializes in web design and SEO has given him invaluable insight creating sites that utilize the latest practices when it comes search engine results.

 

Search engine algorithms change frequently, and a website that isn’t optimized for modern SEO techniques—such as fast loading times, relevant keywords, and high-quality content—won’t perform well. Regular updates can help maintain or improve those rankings.

 

Keep tabs on competitors

 

“Google cannot read images, so putting as much text on your site as possible will be much easier for Google to read,” says Aneesh, who also recommends creating a Google business profile. “That’s where people are going to check initially when they have a requirement. For example, if I’m new to Cambridge and I need an electrician or a plumber, where should I go? I’ll just ask Google for plumbers near me, or I will use other key words to search.”

 

He also stresses the need to look towards what a business’ competitor is doing with their website.  If they look more modern, load faster, or provide a better user experience, potential customers may choose them over you so keeping your website updated ensures you remain competitive in your industry.

 

“Anybody can create a website, but at the end of the day, you have to think about ‘What am I doing with this? Why am I creating this website?’” says Aneesh. “When creating a website, make sure you do your research regarding what’s going on around your locality.”

 

He also recommends when designing or updating your website, a business should try to maximize the amount of information it can have on the site.

 

“I always say put as much information as you can on the website, but it should be categorized in a way people can easily find it,” says Aneesh. “For example, if you're posting reviews, create a page for reviews. If you are posting your services, create a particular page for those services. That’s how people can easily, or even Google, see that your business is providing these services because you have a page explaining everything.”

 

Comprehensive experience is key

 

He says giving customers a comprehensive experience online is key since the majority no longer will take the time to reach out via an email, let alone a phone call.

“Nowadays, nobody goes out to a business ahead of time without knowing what they provide, or what exactly they offer,” says Aneesh.

 

When it comes to updating a website, if it requires calling a developer every time you need to make a small change, it could be time to switch to a modern content management system (CMS). Platforms like WordPress, Shopify, and Wix make it easy for business owners to update their sites without technical expertise.

 

However, for any major redesigns, Aneesh recommends using the services of a professional, recognizing that costs are always at the forefront of decision-making for smaller businesses.

 

“But e-commerce is so important, which is something businesses learned going through the pandemic,” he says, noting the introduction of AI is also drastically changing the way people search online. “The possibilities are infinite nowadays and technology is evolving every day.”

 

 

Signs that your website needs a reboot:

 

Outdated Design and Aesthetics

Trends in web design evolve, and a modern, visually appealing site creates a positive first impression. Flat design, bold typography, and interactive elements are now standard. If your site still features cluttered layouts, outdated fonts, or excessive animations, it may be driving potential customers away.

 

Poor Mobile Responsiveness

More than half of web traffic comes from mobile devices, so a website that isn’t mobile-friendly is a major drawback. If users must zoom in, scroll excessively, or struggle with unclickable buttons, they’re likely to leave. A responsive website automatically adjusts to different screen sizes, ensuring a seamless experience across devices.

 

Slow Loading Speeds

If your website takes longer than a few seconds to load, visitors may leave before it even loads. Slow loading speeds can be caused by unoptimized images, outdated coding practices, or a lack of proper hosting. Regularly testing speed and making necessary improvements can enhance user experience and boost search engine rankings.

 

Low Search Engine Rankings

If your website isn’t ranking well on search engines, it may be due to outdated SEO practices. Updating your website with modern SEO techniques, such as optimized content, meta tags, and mobile responsiveness, can help improve visibility.

 

Security Vulnerabilities

If your site is still running on an old CMS version, lacks SSL encryption, or doesn’t follow security best practices, hackers may exploit it. Regular security updates and a secure hosting provider can protect sensitive customer data and maintain trust.

 

High Bounce Rate and Low Engagement

If your website analytics show that visitors are leaving quickly without interacting, it may indicate a poor user experience. This could be due to confusing navigation, slow load times, or unappealing content. Analyzing user behaviour and making necessary updates can help keep visitors engaged and encourage conversions.

 

Difficult Content Management

A modern CMS makes it easier to edit pages, publish blog posts, and update product listings without needing technical expertise. A well-maintained and dynamic website keeps customers informed and engaged.

 

Incompatibility with New Technologies

With evolving technology, older websites may not support new features such as chatbots, e-commerce integrations, or interactive elements. If your website can’t keep up with current digital trends, you might be missing out on valuable opportunities to enhance customer experience and streamline operations.

 

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The high cost of living, inflation, housing affordability, and rising operational costs top the lists of concerns for Ontario businesses, according to the Ontario Chamber of Commerce’s (OCC) most recent Ontario Economic Report (OER)

 

The report shows a significant rise in business confidence over the course of 2024, climbing from a historic low of 13% to 26% by year’s end. Despite this improvement, confidence remains historically low and fragile, with 48% of businesses expressing a lack of confidence in the economy. Affordability and the cost of living continue to be the most pressing concerns for businesses.

 

The survey, conducted between October 15 and December 2, 2024, gathered insights from 1,714 respondents representing a diverse range of industries, regions, and organizations.

 

The results show that when U.S. tariff threats are on the table, business confidence drops dramatically to just 15%, almost erasing the last year’s gains, according to the OCC’s separate tariff survey in early February. This recent research also shows that with tariffs in play, six in ten (60%) business decision makers would lack confidence in Ontario’s economic outlook.

 

“I may not use the word fragile describing the confidence level and instead use the word tempered,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “People's optimism for the future of business in the short term is tempered by the impact of Trump’s tariffs. I think most people in business realize that the impact of any decision is probably going to be short term. Whether or not tariffs are long term isn't the issue, it’s the impact of tariffs. So, after a period time, the marketplace settles down and people get used to whatever is the new reality.”

 

Ontario’s economic outlook varies

 

Confidence in Ontario’s economic outlook varies significantly across industries, with the information and cultural industries sector reporting the lowest level of optimism at just 17%.  Businesses in this sector cite high operational costs, shifting consumer behaviour, declining advertising revenues, and mounting pressures from technological disruption, global competition, and regulatory challenges as key drivers of their pessimism.

 

The retail (18%), non-profit (20%), utilities (21%), and accommodation and food services (22%) sectors follow closely, reflecting the impact of declining consumer spending amid heightened cost-of-living pressures.

 

The agriculture sector, while showing a slight improvement over last year, also remains among the least confident sectors (22%). Concerns in this sector centre on extreme weather events, trade and supply chain barriers, and growing labour gaps and succession planning challenges as a significant portion of the workforce approaches retirement.

 

By contrast, confidence is strongest in the mining (56%), finance and insurance (40%), and administrative and waste management services (40%) sectors. This could be explained by the strong demand for critical minerals supported by Ontario’s Critical Minerals Strategy, rising sustainability initiatives the finance sector’s ongoing resilience, and growth driven by fintech advancements. These sectors demonstrate adaptability and the ability to capitalize on emerging opportunities.

 

Survey respondents remain optimistic

 

Regionally, most of Ontario’s regions outside the GTA saw a significant reduction in confidence compared to the previous year.

 

Confidence is lowest in Stratford-Bruce Peninsula (19%), Northeast Ontario (21%), and the Greater Ottawa Area (21%), where in addition to concerns surrounding high costs and housing affordability, businesses are disproportionately sensitive to government policies and investments and have suffered more extreme weather events than other regions.

 

Confidence is highest in the Greater London Area (34%), a significant rebound from last year (9%). This resurgence is likely fueled by strong consumer demand, and domestic manufacturing capacity and supply chains, including the announcement of the Volkswagen EV battery plant in St. Thomas.

 

Despite the challenges, respondents report relative optimism about their own business growth prospects. Nearly half (49%) express confidence in their own future, citing factors such as strong consumer demand, innovation, and improved inflation management, something that doesn’t surprise Greg.

 

“I think that you'll find that there's going to be a growth and optimism because many sectors in Canada are going to strengthen as a result,” he says. “We’ve never been the ‘buy Canadian’ kind of a nation and the U.S. has always had buy American programs in place because we’ve always understood we were a player in the global market.”

 

He says there are initiatives created by the Provincial and Federal governments to encourage Canadian businesses to look at other, more reliable markets, rather than depending on the American market.

 

European Union agreement key

 

“Why we perceive the U.S. market to be unreliable right now is because anything that the American government does that impacts the trade with their nation is exponential in our case because 80 per cent of our GDP goes to the United States,” says Greg. “So, we're vulnerable to every whim of the U.S. government. For us to get more reliable sources, we need to diversify so we need to have relationships in the European Union.”

 

He notes the Canada-European Union Comprehensive Economic and Trade Agreement, which Canada signed in the fall of 2016, has been underutilized. 

 

“I think it stands to reason that we have not served ourselves well by not really looking seriously at the European Union for economic trade,” says Greg, noting this happened primarily because of our expectation the U.S. would always remain a reliable trading partner.

 

“We need to understand what the reality of this is going to be going forward and whether we do get aggressive when it comes to find other trading partners.  And if Canadians continue to buy Canadian that will really impact the U.S. exponentially because we do consume a lot of American products.”

 

Click here to read the report.

 

Report highlights: 

 

  • Business confidence in Ontario’s economy has doubled in the past year, rising from 13% to 26%, but a majority of respondents (48%) lack confidence in the economy. 
  • High costs remain the top concern for businesses, with 78% citing the cost of living, followed by inflation (62%), housing affordability (57%), and rising operational costs (51%).
  • Simplifying or reducing business taxes (42%) is the most frequently cited policy solution to improve economic conditions, followed by affordable housing (32%), health system capacity (30%) and workforce development to solve labour shortages (29%).
  • While businesses recognize the economic importance of technology adoption, environmental sustainability, diversity and inclusion and Indigenous reconciliation, businesses report a need for support and guidance in seizing these opportunities.
  • Businesses report being ill-equipped to support workers and communities through mental health and addictions challenges. For example, while 71% of businesses recognize the importance of mental health and well-being to their success, only 41% have formal mental health strategies.
  • Business leaders are confident in their ability to adapt to ongoing trade tensions between the U.S. and Canada with nearly half (48%) reporting confidence, while 32% are neutral and only 15% expressing a lack of confidence. 
  • Ontario’s post-pandemic recovery faces significant headwinds, including potential U.S. tariff threats, geopolitical instability, lagging productivity, affordability challenges, and rising unemployment.
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Corporate social responsibility (CSR) has become a critical aspect of modern business strategy, transcending the traditional goal of profit maximization. It represents a company's commitment to ethical practices, environmental stewardship, and positive contributions to society. 

 

In an increasingly interconnected world, stakeholders—from consumers to investors and employees—are placing higher expectations on businesses to operate responsibly.

 

“In today’s world, social responsibility continues to play a bigger role in consumers’ decision making of where and who they want to shop from or work with,” says Brittany Silveira, Marketing Manager at Grosche International Inc. “However, for some organizations, social responsibility remains a checkbox rather than a core value.”

 

For more than a dozen years the Cambridge-based kitchenware company which has operated as a social enterprise not only offers quality products but has provided thousands of people worldwide with clean drinking water through its Safe Water Project. 

 

“Businesses that integrate social responsibility into their DNA—like Grosche does—see long-term benefits. It's about creating shared value and using your business as a force for good: positively impacting society while fostering brand loyalty and resilience,” says Brittany, who shared some of her insights at our annual Small Business Summit held this past fall at The Tap Room in Tapestry Hall.

 

Workers seek purpose-driven employment

 

It’s a mindset that has become more prevalent for many businesses.

 

Some do it, according to Daniel Waeger, Associate Professor, Canada Research Chair in Corporate Governance at Lazaridis School of Business and Economics Policy, because they are a consumer facing business and realize it’s important to their clientele, and others see it as a way to charge a higher price.

 

“Often times it’s also just the values of the leadership,” he says, adding employees themselves are also a driving force for many businesses to become more socially responsible.

 

Today's workforce values purpose-driven employment. Employees, particularly younger generations, prefer to work for organizations that align with their values. CSR initiatives, such as community engagement programs or efforts to promote diversity and inclusion, create a sense of pride and belonging among employees.

 

Moreover, companies that demonstrate social responsibility often experience higher retention rates, as employees are more likely to stay with employers who contribute to the greater good.

 

“I would say over the last five to ten years, it has shifted quite a bit more to the employee side,” says Daniel, noting employees are also willing to hold a business accountable when it comes to upholding their CSR commitments even more so than the public. “As you soon as you make commitments towards your employees, they know what’s going on inside the firm, so they are in a better position than the media to hold you to your words and to hold you accountable to a certain extent.”

 

CSR strategies attract investors

 

While CSR requires investment, it often leads to long-term financial benefits.

 

Studies have shown that socially responsible companies tend to perform better financially over time. Ethical practices reduce risks, such as legal issues or reputational damage, which can be costly.

 

Additionally, CSR initiatives can open new revenue streams, such as eco-friendly product lines or partnerships with like-minded organizations. Investors also favour companies with robust CSR strategies, as these are seen as more sustainable and resilient in the long run.

 

For the next generation of business leaders, Daniel says he has seen a difference in the attitude among the people he instructs when it comes to putting CSR at the forefront of their business ambitions.

 

“People used to go to business school to become rich,” he says. “I think the considerations of the public good or of the common good are more central today than they were before. And I do think that it’s overall a good thing if there is a civic attitude.”

 

Brittany agrees and believes the notion of social responsibility is not a foreign concept anymore, but that its implementation still widely varies.

 

“The challenge lies in shifting it from an afterthought to a strategic priority,” she says. “I believe this transition is crucial for businesses aiming to stay relevant and meaningful.”

 

Reflect on company values

 

In terms of taking that first step to CSR, Brittany says a business must reflect on its values and the values of its consumers.

 

“Basically, what do you want to stand for beyond profitability? Brainstorm and identify causes that align with your mission and resonate with your team and customers,” she says. “From there it’s about creating a plan, starting small and measuring your efforts. Begin with one or two meaningful projects rather than spreading yourself too thin. Whether it’s reducing waste in your operations, launching a give-back program, or volunteering in your community, ensure your efforts are manageable and measurable.”

 

From there, Brittany says a company can then embed these values into its business model and share its efforts with the community both internally and externally.

 

For some businesses, like Grosche, becoming a Certified B Corporation may become the next logical step. Being one signals a business's commitment to balancing purpose and profit. B Corps are companies verified to meet high standards of social and environmental performance, accountability, and transparency.

 

“This certification assures employees, customers and stakeholders that you’re not just talking the talk. You’re actually making a real difference,” says Brittany. “This credibility and the give back component to your business is a great competitive advantage that can also attract top talent and increase customer loyalty.”

 

 

10 ways a business can actively embrace CSR:

 

Promote Environmental Sustainability

Reduce waste through recycling programs and sustainable packaging.

Transition to renewable energy sources and improve energy efficiency.

Implement water conservation initiatives and reduce carbon emissions.

 

Practice Ethical Sourcing

Ensure suppliers follow fair labor practices and humane working conditions.

Source raw materials sustainably to avoid environmental degradation.

Partner with vendors who share the company’s ethical standards.

 

Encourage Diversity and Inclusion

Establish equitable hiring practices to foster a diverse workforce.

Support underrepresented groups through mentorship or leadership programs.

Create a workplace culture that celebrates inclusivity and equity.

 

Support Community Initiatives

Sponsor local events or donate to community programs.

Encourage employees to volunteer by providing paid time off for service.

Partner with non-profit organizations to address local social issues.

 

Invest in Employee Well-being

Offer competitive wages, comprehensive benefits, and work-life balance initiatives.

Provide professional development and training opportunities.

Prioritize mental health through access to resources and support systems.

 

Champion Ethical Business Practices

Adopt anti-corruption policies and ensure transparency in operations.

Uphold consumer rights by delivering honest advertising and high-quality products.

Maintain strict compliance with labor and safety regulations.

 

Educate and Raise Awareness

Create campaigns to educate employees and customers about social or environmental issues. Collaborate with schools and universities to promote sustainability or ethics education. Use social media to amplify causes aligned with the company’s CSR goals.

 

Develop Sustainable Products and Services

Innovate products that are environmentally friendly or socially beneficial.

Reduce the environmental impact of production processes. Offer services that address societal challenges, such as renewable energy solutions.

 

Engage in Fair Trade Practices

Support fair trade-certified products and suppliers. Promote economic growth in developing regions by purchasing goods directly from small-scale producers.

Ensure fair compensation throughout the supply chain.

 

Measure and Report CSR Impact

Regularly assess the effectiveness of CSR initiatives using KPIs. Share progress and achievements through transparent reports. Use feedback to continuously improve CSR strategies.

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As businesses navigate an era of rapid technological evolution, shifting workplace dynamics, and global interconnectedness, preparing your workforce for 2025 demands strategic foresight. 

 

The key to success lies in fostering adaptability, embracing technological advancements, cultivating a culture of continuous learning, and prioritizing employee well-being.

 

“Whether it's the benefits program, whether it's salaries, the expectations of employees have gone up and I think also to the expectation of the business culture,” says Frank Newman, owner of Newman Human Resources Consulting. “I think people are making more and more decisions based on workplace culture.”

 

He says since the pandemic, the continuing trend of creating a strong workplace will become even more apparent in 2025 and beyond as potential employees look for reasons why they should work for a particular company.

 

Strong communication

 

“If a business owner can't answer positively what it's like to work there, then that’s going to be a problem,” says Frank. “As an employer, you have to look at your internal culture and determine what is it like. Are we behaving as we say we are? What are our values? And because it's still a competitive world out there, how do we differentiate ourselves?”

 

Ensuring your company brand is on target is key when it comes to navigating the current hiring environment, which he believes has become less civil since the pandemic in terms of the way some potential employees disrespect a company’s time, in some cases by not even showing up for a scheduled interview.

 

“I think as people we've got used to a little bit lower standard. So, as an organization, if you want to be the preferred employer or even the preferred partner to work with as a business partner, you need to up your game a bit because that's going to put you in good stead for the long run,” says Frank, adding sending a ‘thank you’ response to potential candidates just for applying is one way to make a positive impression.

 

“You want to make sure you increase your communication standards because everything is now subject to online reviews. The whole review concept is important - whether it's employee reviews or whether it's customer reviews – and to be aware and make sure you check them monthly because you don't know what people are going to say about your business.”

 

Safe environment needed

 

Good communication with employees also remains key, he says, noting in wake of the pandemic mental health issues continue to be an ongoing issue for many companies.

 

“The latest trend now is to make sure you have an employee assistance plan that can help with mental health and other counseling needs people have,” says Frank. “We live in an age of stress. It’s about having some tools for people to access, such as mental health professionals, or even just making sure that employees feel comfortable sharing.”

 

Creating a psychologically safe environment is a big part of developing a mental health strategy that works, taking into consideration the various pressures employees are under at work and at home.

 

Frank recommends conducting a pulse survey as a way to quickly collect feedback from employees to gauge their impressions of where the company stands at the moment. Depending on the size of your workforce, he says sitting down for a coffee and an informal chat can also be just as effective. 

 

“It’s about keeping an ear to the ground in terms of what your employees are feeling and facing,” he says. “We don’t want tone deaf business owners; that’s not going to cut it these days and I think people are looking for more humanity from their business leaders.”

 

A continued trends towards hybrid work situations could also play into that sense of humanity as employers look for ways to engage with their online workforce.

 

“You’ve got to make sure you are finding ways to leverage that and build those connections when people are isolated at home,” says Frank, noting that many employers continue to see a surge in potential applicants when it comes to offering hybrid work. “Managers must think about that and what it does to their recruiting.”

 

Investing in leaders

 

He says trusting your employees promotes growth and productivity, and that mistrust erodes confidence.

 

“What companies should be thinking of now is really investing in leaders. So, it’s important to make sure your leaders are connecting with their people and being authentic,” says Frank. “Most people leave an organization not because of work, but because of the boss.”

 

He says trust also works in both directions, especially when it comes to companies maneuvering through the current economic and political turmoil facing businesses in North America.

 

“It’s really about planning ahead and also letting your employees know that you’re taking things seriously and have plans in place to deal with these issues, because sometimes they are not aware of what management is doing and that may create some uncertainty,” says Frank, noting when it comes to the future, a strong AI strategy to assist employees boost their productivity is also a key consideration. “Companies should be leveraging that as much as possible.”

 

 

How businesses can prepare their workforce for the challenges of the near future:

 

1. Embrace Technological Integration

The workforce of 2025 will operate in a tech-driven environment. Businesses should:

 

  • Invest in Training: Equip employees with skills in artificial intelligence (AI), data analytics, and automation to remain competitive.
  • Encourage Digital Literacy: Ensure that all employees, regardless of their role, are comfortable using digital tools.
  • Leverage Collaboration Platforms: Utilize tools like Slack, Microsoft Teams, and project management software to streamline communication and project execution.

 

2.  Prioritize Employee Well-Being

The pandemic highlighted the importance of mental health and well-being. A healthy workforce is a productive workforce. Companies should:

 

  • Implement Flexible Work Models: Offer remote, hybrid, or flexible hours to enhance work-life balance.
  • Provide Mental Health Resources: Offer counseling services, wellness programs, and stress management workshops.
  • Encourage Inclusion: Build a diverse and inclusive culture where employees feel valued and respected.

 

 3. Focus on Reskilling and Upskilling

As technology advances, certain skills will become obsolete while others gain prominence. To stay ahead:

 

  • Identify Skill Gaps: Use skills assessments and workforce analytics to pinpoint areas for improvement.
  • Offer Continuous Learning: Provide access to online courses, certifications, and on-the-job training. 
  • Promote Leadership Development: Groom employees for future leadership roles through mentorship and coaching.

 

 4. Foster Agility and Innovation

The ability to adapt to change and innovate will be critical in 2025. Encourage:

 

  • Agile Mindsets: Train employees to thrive in uncertain and dynamic environments.
  • Collaborative Problem-Solving: Create cross-functional teams to foster diverse perspectives and solutions. 
  • Employee Empowerment: Give employees autonomy and a voice in decision-making processes.

 

 5. Leverage Workforce Analytics

Data-driven decisions can significantly enhance workforce management. Businesses should:

 

  • Monitor Performance Metrics: Use analytics to track productivity, engagement, and retention.
  • Predict Trends: Anticipate future workforce needs based on current data. 
  • Customize Experiences: Tailor learning and development initiatives to individual employee needs.

 

 6. Commit to Sustainability

The workforce increasingly values companies that prioritize environmental and social responsibility. Businesses should:

 

  • Integrate ESG Goals: Align corporate strategies with environmental, social, and governance (ESG) principles.
  • Engage Employees: Involve the workforce in sustainability initiatives and green practices.

 

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The following column by Cambridge Chamber President and CEO Greg Durocher appears in the fall edition of our INSIGHT Magazine

 

I’m not sure you are with me on this, but I am perplexed and concerned about the anger and vitriol commentary coming from not only politicians, but more so these days from the voting public. 

 

I recall the early days of the environmental movement and the efforts made to get politicians to believe it should be a concern for everyone, especially now considering the mild winters we’ve been experiencing.  Many blamed politicians for not acting fast enough. However, in all fairness to them, it was the voters who put “climate” further down the list of priorities of what they wanted their government to do for them.

 

However, it did ignite the creation of the Green Party, and while their optimism and frustration often appeared to be on high volume, back then there wasn’t much name calling, lying, fabricating and conspiracy theories surrounding this issue.

 

In the 1980s, the Free Trade Agreement (FTA) was the big issue, and the Progressive Conservative Party led by Brian Mulroney won a majority government by making it the focus of the campaign. However, while the Liberals, led by John Turner, and the NDP, led by Ed Broadbent, vigorously campaigned hard against the FTA, there were no stones being thrown, literally or figuratively. 

 

Today, every social media stream is filled with vitriol commentary aimed not at the ideas, but rather at the people behind them. There appears to be a feeling that we need to beat people down because it’s believed this is the only way to get them to change their minds, or the only way we can convince others to think the same way. 

While Canada’s national election campaign hasn’t started (officially), we’ve seen this scenario play out in the United States’ election race as actual policies have taken a backseat to insults and taunts. 

 

Democratic process remains

 

What has changed in politics? Certainly not the process since we live in a democracy that provides us with the opportunity to make, hopefully, an informed a choice every four years after following election campaigns covered by the media. 

 

Sure, there are some mainstream media (MSM) outlets that have a bias, some more noteworthy than others, but at the core there are facts being reported. Sure, they edit and can pick out the worst of the worst, but it’s not like they are reporting things that didn’t occur.

 

I remember when John Tory, while vying to be Ontario Premier, supported universal government funding for all schools. Frankly, that wasn’t the whole story, but nonetheless, the MSM reported it and he fell off the cliff in terms of support.

 

Communication is important and can derail or rev up a campaign.

 

But today’s election campaigns have turned on the MSM, calling them “fake news”, calling out their reporters, vilifying the industry in favour of… you guessed it, their own made-up reporting on social media. 

 

Right after the 2015 federal election where Prime Minister Justin Trudeau moved from third place to first place with a majority government, The Globe and Mail published a story stating that former PM Stephen Harper was the most bullied politician in Canadian history. Today, he wouldn’t even be in the top 1,000 and comparatively got off easy because Facebook and X (formerly Twitter) weren’t in the public domain until after he was elected. 

 

It took a few years for people to understand how easy it was to hide behind a keyboard and say anything they liked.

 

Social media posts creating chaos

 

Don’t get me wrong, I love seeing photos online of family and friends living their lives, but there seem to be less of that compared to all the other trash which seems to fill our social media feeds. Someone really needs to figure out how many posts are valid compared to the amount which are strictly someone’s opinion or false. 

 

I read a tweet recently by someone with 1.2 million followers, a supporter of former U.S. President Donald Trump, who posted that VP Kamala Harris was not eligible to run for President because she wasn’t born in the U.S. Well, despite that some Republicans don’t want to believe California is even in the U.S., she was in fact born in Oakland, CA.

 

But the problem is, potentially 1.2 million followers of this person may now believe that tweet. I also read a post where a U.S. senator has promised that if the Republicans win the Senate, he is going to reopen the case on former U.S. President Barack Obama’s birth certificate. 

 

Stupid posts like these create the chaos we are experiencing and now that the horse is out of the barn, there is no putting it back in.  If the executives of these social media giants get a kick out of the chaos they’ve created, they will never do anything to clean it up. Elon Musk has been using his social media platform ‘X’ to campaign for Trump and when he comes across conspiracy commentary, he generally hasn’t rebuked it, instead he retweets it with a “I wonder” attached. 

 

Is it any wonder that we are having difficulty finding good candidates these days? Who wants to be the target of some tyrannical rage of baseless unvetted information? 

 

Ignore conspiracy theorists

 

I have had my battles with the MSM in the past, but I’ll take them over any social media feed because at least there are guidelines and rules they must follow. On social media, it seems the more outrageous the better and it’s bound to only get worse since many major MSM outlets continue to restructure resulting in layoffs.

 

The light at the end of the tunnel appears to be growing even more dim for many mainstream media outlets. But I leave you with a very important question: Where will you get the REAL news when the MSM disappears? Will it be X or Facebook, Instagram, or even TikTok? 

 

I think we all need to understand that what we see today is minor compared to what we will see just a few years down the road. 

 

The next time we go to the polls, maybe, just maybe try to ignore the conspiracy theorists and crazies and instead read a newspaper (print or online) or listen to the radio - preferably 570 News Radio at noon on Sunday - or watch your favourite newscast on TV because you might just learn something factual about the candidates and their policies.

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Small to medium-sized businesses generate big returns for the Canadian economy.

 

Defined as businesses with fewer than 100 employees, SMEs constitute about 98% of all businesses in Canada providing employment opportunities to millions of Canadians and make up 48% of our gross domestic product.

 

According to Statistics Canada, businesses with one to 19 employees provide employment for nearly 30% of the country’s working population and three out of four Canadian businesses have less than 10 employees.  Locally, 70% of the workforce in Cambridge is employed by small businesses with less than 10 employees, according to the City of Cambridge website. 

 

Taking this into consideration it is fitting that Oct. 20-26 has been deemed Small Business Week to coincide with Small Business Month, providing the Cambridge Chamber of Commerce the chance to not only celebrate SMEs but offer them a unique learning opportunity thanks to our Small Business Summit: Embracing Transformation for Future Success

 

“Local SMEs play such a significant role in the economic fabric of our community and this summit is a great way to provide their operators with actionable insights and strategies to create even more success,” says Cambridge Chamber President and CEO Greg Durocher. “The summit will focus on embracing transformation which is something all businesses need to consider given the current economic climate.”

 

The Small Business Summit – being held Oct. 23 at Tapestry Hall - features three expert speakers who will explore a variety of topics, including AI and automation, diversification strategies, as well as community engagement and corporate social responsibility.

 

Also featured is a 90-minute virtual experience entitled ‘Spark’ that outlines for viewers the stages surrounding transforming an idea into action.

 

Summit speakers and topics include:

 

Building a Resilient Business Model:  Diversification strategies to withstand market fluctuations

Yohaan Tommy, MNP partner, will share his knowledge surrounding delivering measurable financial results, revenue growth and sales, and supply chain management as well as how to conduct business process reviews to improve operations.

 

Adopting AI and Automation: Practical applications of AI in small business operations and automation tools to streamline workflows

Atif Khan, Vice President, AI & Data Science at Messagepoint, has extensive experience in cutting edge AI research and big data technologies regarding solving challenges and will share his expertise on AI, information systems as well as data privacy and security.

 

Community Engagement and Corporate Social Responsibility: Building a business that gives back to the community 

Brittany Silveira, Marketing Manager at Grosche International Inc., will share her insights on this topic and the impact of CSR on brand reputation and customer loyalty. 

 

'Spark’

Spark is a 90-minute virtual experience that will highlight for participants the five stages of transforming an idea into action, including a critical component that is the difference between failure and success on a new goal. The presentation features teaching and interactive exercises that will serve participants’ newest goal or project.

 

Click here to attend our Small Business Summit: Embracing Transformation for Future Success. The summit runs from 9 a.m. to 2 p.m. Wednesday, Oct. 23 at Tapestry Hall.

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Assisting small and medium-sized manufacturers is critical for several reasons, including economic growth, innovation, job creation, and regional development. 

 

By investing in their success, governments, industry leaders, and policymakers can help create a more inclusive, dynamic, and sustainable manufacturing sector that benefits not only individual businesses but also the broader economy and society at large.

 

According to the City of Cambridge’s website, the manufacturing sector accounts for approximately 22% of the city’s labour force and includes more than 500 businesses and employs more than 15,000 people. In Waterloo Region, more than 17.5% of residents in total are employed in the sector making it the fourth largest manufacturing centre in Canada.

 

The Cambridge Chamber of Commerce has long since recognized the vital role these SMEs play in our community and as an organization that champions momentum to spark economic growth has developed a new program in partnership with Toyota Motor Manufacturing Canada (TMMC) to assist them. 

 

Entitled Manufacturing SkillUp for SMEs, this six-part learning opportunity led by a team of industry experts focuses on a variety of topics important to small and medium-sized manufacturers.

 

These include AI integration, supply chain dynamics, mastering customer service, bridging cultures in the workplace, precision advancement, and developing a Kaizen strategy. 

 

Productivity lagging in Canada

 

The program is available to both Cambridge Chamber members and non-members throughout Waterloo Region.

 

Cambridge Chamber of Commerce President and CEO Greg Durocher said the launch of the program comes at the right moment considering Canada’s productivity continues to lag.

 

According to a recent Financial Post article referencing Statistics Canada data, labour productivity at Canadian businesses has declined for two consecutive quarters, after a 0.3 per cent drop in the first quarter of 2024, with 11 of the 16 main industries recording declines. At an annual rate, productivity in Canada – which has been lagging for decades - fell by 0.7 per cent and since 2019 has declined 0.5 per cent. 

 

“We thought it would be a good idea for us to develop a program for small and medium-sized manufacturers and advanced manufacturing firms so they are able to learn leading edge technologies and leading-edge performances that can make them a better and stronger player in the international market,” says Greg, noting the Chamber provides a variety of programming to find the path towards successful solutions. “Through the pandemic we found a lot of SMEs were turning to the Chamber for advice, direction and guidance.”

 

Manufacturing SkillUp for SMEs begins in October with a session at the TMMC facility on Fountain Street North entitled ‘Crafting a Kaizen Strategy’ and features a tour of the plant. The remaining five sessions will run monthly into March of 2025.

 

Click here to learn more. 

 

 

Series Topics

 

October - Crafting a Kaizen Strategy: Embracing Continuous Improvement for Lasting Success (Includes a Toyota Tour)

 

November - Integrating AI into Daily Operations: Transforming the Future of Work

 

December - Mastering Customer Service Excellence: Elevating Standards for Business Success

 

January, 2025 - Bridging Cultures: Mastering Intercultural Communication in the Manufacturing Workplace

 

February, 2025 - Mastering Supply Chain Dynamics: Insights from TPS and TMMC Practices

 

March, 2025 - Advancing Precision: Upskilling Employees in Cutting-Edge CNC Machining Techniques.

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A large majority of Canadian businesses are sluggish when it comes to the adoption of Generative Artificial Intelligence (Gen AI), according to the results of a recent report by the Canadian Chamber of Commerce’s Business Data Lab (BDL).

 

The 38-page report details how a multitude of barriers, along with a lack of trust in the new technology, could impede the adoption levels needed to improve Canada’s economic growth.

 

Locally, the report shows that 11% of businesses in Kitchener-Waterloo and Cambridge are "using", or "planning to use" Gen AI, compared to 18% in Toronto or 15% in Ottawa. 

 

The report, Prompting Productivity: Generative AI Adoption by Canadian Businesses, underscores how Gen AI (referring to Large Language Models bases and the practical applications built on top of them) can help tackle one of the most significant economic challenges facing Canadian prosperity and standard of life — low productivity — while also exploring what is holding Canadian businesses back from adopting AI technologies.

 

The results detailed in the report, compiled from a survey of 13,327 businesses in January and February of this year, shows that larger businesses are nearly twice as likely to adopt Gen AI compared to smaller businesses. Overall, the data shows that one in seven businesses (roughly 14%) – mostly larger businesses and industries with highly educated workers – are Gen AI adopters. 

 

Patrick Gill, BDL's Senior Director of Operations and Partnerships, and the report's lead author, says he's surprised more small businesses haven't been embracing this new technology. 

 

“I’ve never run into a small business owner who wasn’t run off their feet and wearing multiple hats or wish they could replicate themselves,” he says. “But that’s the nice thing about this tool. With little or at no cost a small business owner or team can leverage this to fill in some of their existing skills gaps.”

 

According to the report, the top three industries adopting AI includes information & culture (31%), professional services (28%), and finance and insurance (23%). The two lowest to adopt are agriculture, forestry, and fishing (8%) and construction (7%).

 

Building trust an issue

 

Patrick says historically, larger businesses usually face more barriers adopting new technologies due to the fact their operations are more complicated and often have technology ‘stacked’ on top of each other.

 

“Smaller businesses usually face less of a challenge,” he says. “Their biggest challenge has usually been ‘Do I have the money right now to invest in a new technology?.”

 

Besides potential costs, trust is also a key issue.

 

“Public trust and the perception of AI will definitely play a crucial role in the adoption of the technology going forward,” says Patrick, noting a survey released last year indicated that Canada was the third most pessimistic country in the world and that only 38% of Canadians view AI in a positive light, slightly ahead of those in the U.S. and France.

 

Patrick says the Business Data Lab report also indicates that people are nervous about what the adoption of Gen AI will mean for their jobs and notes most agree change will come in the way they conduct their jobs, versus losing them outright.

 

“Right now, the technology is predominantly being used to augment workers’ abilities and not to replace them entirely,” he says, adding many are looking at Gen AI as a tool that can accelerate production and improve quality and services in effort to reduce costs. “That’s incredibly important during this time of a high-cost operating environment.”

 

From a global perspective as interest in Gen AI continues to grow, the report indicates that Canadian businesses need to move fast to gain a competitive advantage over global competitors. Low productivity and business investment puts Canadians’ prosperity and living standards at risk and its GDP per capita is now significantly below the U.S. and the OECD (Organisation for Economic Co-operation and Development) average.

 

Businesses must ‘innovate or die’

 

“Gen AI is a generational opportunity to boost Canadian productivity at a time when our performance is steadily headed in the wrong direction. The time to prompt productivity and act is now. Canadian businesses must innovate or die, and that means embracing Gen AI,” says Patrick. “While adoption has begun in every industry, it’s likely not fast enough for Canada to be competitive on the global stage, especially since three in four Canadian businesses still haven’t tried Gen AI yet.”

 

Based on two adoption scenarios (“fast” and “slow”), the Canadian Chamber of Commerce’s BDL projects that Gen AI adoption by Canadian businesses will reach a tipping point of 50% in the next three to six years.  This may seem fast but is probably not fast enough to keep pace with global leaders. Businesses in the U.S., China and several European countries are investing heavily in AI, likely outpacing Canadian investment.

 

“Those who move first basically set the standards and capture the largest market share,” says Patrick. “And everyone else is perennially playing catch up.”

 

He hopes the findings in the BDL report may gently ‘nudge’ businesses into more experimentation when it comes to adopting Gen AI. 

 

“There are so many low costs and no cost options available, so experiment and give it a try,” says Patrick, explaining how AI can assist with creating emails, marketing, and promotional content, and well as new visuals. “Use and test it and eventually you’ll find a way.”

 

Click here to the read the report.

 

 

Key findings from the report

 

  • Roughly 1 in 7 Canadian businesses (14%) are early Gen AI adopters. They are found within every Canadian industry and region, but are more likely to be exporters, larger businesses, industries with highly educated workers or emerging enterprises.
  • Larger businesses are nearly twice as likely to use Gen AI than small businesses.
  • 18% of Ontario businesses are ‘already using’ or ‘plan to use’ Gen AI (Toronto rate was 18%, while KW-Cambridge was 11%).
  • On its current trajectory, Gen AI adoption by Canadian businesses could reach a tipping in the next 3 to 6 years — likely too slow to keep pace with global competitors.
  • Depending on the rate of adoption, Gen AI could grow Canada’s productivity between 1% and 6% over the next decade.
  • The factor of “trust” will be important for future adoption, with public interest and acceptance of AI likely being positively correlated with countries’ business adoption rates. Global IPSOS surveys reveal that Canadians are less knowledgeable and more nervous about AI than citizens of most other countries.
  • Most businesses using Gen AI are predominately looking to accelerate content creation (69%) and automate work without job cuts (46%).
  • Interestingly, replacing workers is not the primary driver of adoption, with only 1 in 8 businesses (13%) that use Gen AI cite its value for replacing employees. 
  • Roughly 3 in 10 businesses cite hiring skilled employees and access to finance as top challenges to adopting new technologies.
  • Almost 3 in 4 Canadian businesses (73%) have not even considered using Gen AI yet.
  • Public interest and perception of the technology are likely additional major barriers to adoption by businesses. 
  • It is recommended that Canadian businesses move fast to adopt Gen AI to gain a competitive advantage over global competitors. This means starting with small-scale pilot projects to validate the feasibility and impact of Gen AI before gradually expand to larger initiatives based on successful proofs of concept, all while training and preparing employees for its adoption.
  • For its part, government can support Gen AI adoption by upskilling workers, setting adoption targets, tapping the private sector, and among other actions, ensuring regulation is proportionate and risk based.

 

Recommendations for business

 

Innovate or die: Canadian businesses need to move fast to gain a competitive advantage over global competitors. With Gen AI so accessible and applicable for every type of business, there is little excuse for Canadian businesses to sit on the sidelines. 

 

Pilot projects that measure uplift: Start with small pilot projects to validate the feasibility and impact of Gen AI. Compare metrics (e.g., efficiency, costs savings and revenue generation) before and after its implementation.

 

Change management and employee training: Prepare employees for the adoption of Gen AI. Provide training sessions, workshops, and resources to help them understand the technology and develop new workflows. 

 

Strategic alignment: Align Gen AI adoption with overall strategic goals. Identify where Gen AI can enhance existing processes, improve customer experience, or drive innovation. 

 

Data infrastructure and governance: Invest in robust data infrastructure and governance practices. High-quality data is essential for training Gen AI models. Ensure data privacy, security, and compliance. 

 

Talent acquisition and retention: Attract and retain talent skilled in Gen AI. Recruit data scientists, machine learning engineers and domain experts who can develop and deploy Gen AI solutions. 

 

Investment in cloud infrastructure: Leverage cloud platforms for scalable computing power. Cloud services facilitate model training, deployment, and maintenance, allowing businesses to experiment and iterate efficiently. 

 

Leverage public resources: Move faster by basing policies on the federal government’s Guide on the use of Gen AI or tapping available funding, such as the NRC’s (National Research Council of Canada) IRAP AI Assist Program.

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