'Much like exercising consistently to build muscle, technology training must happen regularly to make the workforce stronger and more agile'
With most employers (74%) believing artificial intelligence (AI) will solve their productivity problems, many appear to be skipping a necessary step to make that happen—providing the necessary training for workers, finds KPMG.
Specifically, although 89% of Canadian business leaders say they're investing in upskilling employees, 53% admit that they don’t invest enough in training and learning opportunities for employees.
With that, 56% say their organization lacks the internal resources and talent needed to implement and use technology effectively. And 63% say their employees aren't using new technologies effectively—and that’s holding back full returns on their tech spend, according to the report.
"Investing in new technology tools and platforms can do wonders for an organization's productivity by streamlining processes, workflows and tasks," says Stavros Demetriou, partner and national leader of KPMG in Canada's People and Change practice. "The latest [Statistics Canada] data shows Canada has made productivity gains in each of the last two quarters, but this increase still trails improvements in the U.S. over the same period.
AI upskilling has become a workplace necessity across industries, according to a previous report from Udemy.
Nearly 3 in 4 (74%) say they underestimated the challenges of digitalisation, finds KPMG’s survey of 250 business leaders in all industry sectors across Canada, conducted May 9-20, 2025.
About 9 in 10 (87%) say their company could do a better job of creating a culture that encourages people to share ideas and take risks, fostering innovation and creativity. And 88% say they need better processes to encourage workers to use technologies, including case studies and incentives.
Now, 86% say they hope that more digital savvy younger generations will help our company become more productive through the easier adoption of new technologies.
"There's a common belief that digitally transforming your company is primarily a technology upgrade exercise, but the reality is that technology implementation is just one part of a journey – digital transformation is just as much about advancing and elevating the workforce,” says Demetriou.
“It's a continuous, iterative process that, if done correctly, leads to higher productivity and innovation, and the ability to navigate the future more confidently.”
According to Randstad, the demand for AI skills is rapidly growing, and employers must urgently address the skills gap.
“To meet this rising demand, employers must invest in comprehensive solutions, prioritising training that is accessible to all employees, regardless of age, gender, or background. Investing in training programmes that cater to specific needs, providing opportunities for continuous learning, and fostering a culture of innovation and adaptation will be critical to bridging the AI skills gap.”
Randstad notes that his includes:
Recently, Google Canada announced it is investing $13 million to help upskill Canadians in the field of AI.
Also, Megan Jones, National HR and Workforce Transformation lead at KPMG in Canada, notes that nearly 9 in 10 respondents say they need better processes in place to encourage their workers to use technologies, including case studies and incentives.
She recommends organizations provide incentives for employees to experiment with technology and explore new use cases for it. "Regular workshops or dedicated 'days' where employees are encouraged to play around with AI and develop new solutions can go a long way in sparking innovation. Also, showcasing wins by employees in one area of the business could help spark new ideas in other parts of the organization," she says.
She adds that when organisations implement new tools and technologies, they often “don’t completely understand or appreciate the full capabilities of these investments.”
“As a result, employees are simply not adequately prepared to maximise the benefits these can bring to their jobs or customers. In some cases, organisations provide full training, but it's too technical or poorly delivered.
“Effective training and upskilling need to be targeted, relevant, engaging, and frequent. Much like exercising consistently to build muscle, technology training must happen regularly to make the workforce stronger and more agile,” she says.
Two in 5 Canadian workers feel pressured to adopt AI for their job, according to a previous report from Robert Half.
