Canadian organizations facing critical readiness gap in trusted AI adoption

Hollow governance and uneven implementation threaten to stall the competitive potential of Canadian businesses: PwC Canada’s Trust in AI Report

• 72% of organizations name responsible AI a top priority, yet 36% still have no dedicated governance function to manage risks.
• Nearly one-third of Canadian organizations plan to spend $10M or more over the next three years and dedicate 26+ staff to responsible AI.
• Strategic hurdles persist, with 65% of leaders citing unclear ownership, difficulty inventorying existing AI systems, and fears that responsible AI will slow innovation as the top barriers to capturing AI’s full potential.
• 71% of leaders anticipate positive financial outcomes from trustworthy AI, viewing it as a value driver rather than a cost centre.

Toronto, ON, February 3, 2026 – While Canadian businesses are moving aggressively to adopt artificial intelligence, a significant “readiness gap” is emerging between their strategic ambitions and their operational governance, according to PwC Canada’s Trust in AI report.

The report reveals that while most organizations recognize AI as the foundational technology of our era, many are operating in a “dangerous comfort zone” of partial implementation. Without dedicated governance structures and rigorous AI lifecycle controls, AI risks can become fragmented, making accountability, risk management, and incident response increasingly difficult.

The report highlights a widening divide between organizations that treat AI governance as a strategic priority and those still experimenting with limited implementation. Leaders who invest in upskilling and view it not as a financial burden but as a necessary enabler—while embedding rigorous controls throughout the AI lifecycle—will be best positioned to unlock the full value of their AI investments. Achieving this requires a deliberate commitment to both spending and skills development to turn policy into practice.

Actions for Canadian Leaders:

• Elevate responsible AI to the C-suite and board: Ensure governance structures match the strategic importance of AI, with clear, cross-functional accountability.
• Know what AI you have: You can't govern what you can't see. Conduct a comprehensive inventory of all AI systems to understand their purpose, owners, and data sources.
• Move beyond “partially implemented”: Set clear timelines to complete foundational capabilities like risk tiering, model validation, and continuous testing.
• Close the skills gap now: Invest in upskilling existing risk, compliance, privacy, security and data governance teams who already understand governance frameworks.

The report concludes that 2026 will be a transition year for Canadian industry. Leaders will be those who move beyond planning mode to elevate responsible AI and its associated spend and staffing to a C-suite and board-level priority.

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