AI powering Canadian employers’ confidence in 2026

Canadian employers are heading into 2026 with strong confidence in their own performance despite concerns about the global economy, underpinned by accelerating investment in artificial intelligence (AI), according to new research from the IBM Institute for Business Value (IBV).

A Canada‑specific readout of IBM’s global report, 5 trends for 2026: Capture fleeting opportunities with confidence, shows that while only 42% of Canadian executives are optimistic about the global economy, 84% are confident about their organisation’s performance this year. The same share – 84% – believe ongoing economic and geopolitical volatility will create new business opportunities.

Globally, IBM IBV found a similar pattern: only one‑third of executives are optimistic about the world economy, but 84% have a positive outlook on their own organisation’s performance and 80% are optimistic about their ability “to rapidly identify and capitalize on market opportunities.”

The report argues that with organisations moving at the speed of AI and, soon, quantum computing, “seeking out stable ground becomes an exercise in futility.” Instead, leaders need to “develop an appetite for ambiguity” and “chart a path forward while the map is still being drawn.”

Rob Wilmot, General Manager, IBM Consulting Canada, says Canadian companies are confident because they are making deliberate bets on AI as a growth engine.

“Canadian organizations are entering 2026 with confidence – not because the economy is predictable, but because leaders are betting on AI as a long‑term growth engine,” Wilmot says. “The priority now is to move beyond experimentation and embed AI into core decision‑making, operations and client engagement in a way that strengthens trust and transparency.”

He added: “What we are seeing this year is the early arc of a broader shift. The choices leaders make in 2026 will shape how competitive they are through the end of the decade.”

Canadian firms are banking on AI to boost efficiency while they try to manage tariff‑driven cost pressures, according to a previous report.

Real‑time decisions and agentic AI

The IBM IBV report highlights a rapid shift toward real‑time decision‑making powered by “agentic AI” – AI agents that can take semi‑autonomous actions.

Globally, 90% of executives say their organisation will lose its edge if it cannot operate in real time. More than four in five say agentic AI is already helping them make better, faster decisions and reallocate resources during disruption, and one in four reported AI agents taking independent action in 2025. Seven in ten expect that capability by the end of 2026.

In Canada, 72% of executives caution that organisations unable to move at real‑time speed will fall behind. IBM says 86% of Canadian respondents already use agentic AI to improve decision speed and quality, and 68% expect AI agents to take independent action in their organisations by the end of 2026.

The report finds that “agentic AI is helping our organization make better, faster decisions to capture opportunities amid disruption.”

A previous study warned that workforce planning in the AI era is changing, but many leaders still lack the right metrics to understand team productivity — even as organizations with strong people analytics pull ahead on performance and innovation. 

Employees open to AI, wary of AI bosses

On the workforce side, IBM identifies a perception gap: executives worry about transformation fatigue, while employees are generally more positive about AI.

Globally, the report notes that “at least twice as many workers across age groups say they would embrace—rather than resist—greater use of AI by their employers in 2026.” It also finds that “81% of employees are confident they’ll be able to keep up with future advances in technology in the workplace,” although 61% expect their job role to change significantly in 2026 and almost half fear their role could be obsolete by 2030.

“For many employees, AI isn’t the enemy—it’s an escape hatch. 61% say AI makes their job less mundane and more strategic,” IBM IBV reports.

In Canada, 57% of employees say AI is transforming corporate culture and 54% are comfortable collaborating with AI. However, only 36% say they are willing to be managed by AI, below the global average of 48%, signalling resistance to fully automated people management.

Executives globally expect substantial reskilling: IBM IBV finds 56% of the workforce will require reskilling due to AI‑driven automation by the end of 2026. The report concludes that “the most valuable employees will do what AI cannot—exercise judgment, build relationships, navigate ambiguity, advance innovation.”

Trust, transparency and AI sovereignty

Trust and transparency emerge as central themes. IBM says 95% of executives believe consumer trust in their AI will define the success of new products and services.

Consumers, the report finds, want clarity on how AI uses their data. “Easy‑to‑understand explanations of how AI is using their data is what makes consumers most comfortable engaging with it,” the study states. Four in five consumers say they would trust a brand less if it intentionally concealed AI’s involvement, and two‑thirds say they would switch brands.

In Canada, 82% of consumers say they would trust a brand less if it deliberately hid its use of AI. On the executive side, 96% of Canadian leaders believe consumer trust in their AI will be critical to product and service success.

IBM also stresses the importance of AI sovereignty – “an organization’s ability to control and govern its AI systems, data, and infrastructure at all times.” Globally, 93% of executives say they must factor AI sovereignty into their 2026 strategy, and 71% say where their data physically resides will be more important this year than in the past two years. In Canada, 92% of executives say AI sovereignty must be built into strategy, reflecting concerns about over‑dependence on compute resources in certain regions and evolving data regulations.

Public confidence in organisations that deploy AI is trailing far behind everyday use of the technology, according to a previous report from TELUS.

How can Canada achieve sovereign AI?

Developing sovereign AI requires multifaceted, co‑ordinated and sustainable efforts across several key areas, says Muath Alduhishy, General Manager of Research and Innovation at the Saudi Information Technology Company (SITE). Here are the six strategic pillars that can help the Canadian federal government — the largest employer in Canada — and nations achieve sovereign AI, according to the article:

Digital infrastructure

• Build robust national digital infrastructure with modern data centres and high‑performance computing.

• Enforce data localisation so data generated domestically is stored and processed locally, strengthening data sovereignty, security and resilience for AI deployment.

Workforce development

• Invest heavily in STEM and AI education across all levels, updating curricula to include AI and machine learning.

• Expand vocational training and lifelong learning so workers can move into AI‑related roles and sustain a competitive national talent pool.

Research, development and innovation (RDI)

• Fund both foundational and applied AI research, along with commercialisation of innovations.

• Build an open innovation ecosystem linking start‑ups, large enterprises, universities, research institutes, government bodies and investors to drive collaboration and breakthroughs.

Regulatory and ethical framework

• Establish clear, comprehensive rules for AI development and use, covering privacy, transparency, data protection, cybersecurity and ethical standards.

• Create oversight and accountability mechanisms to ensure AI is deployed responsibly and in the public interest.

Stimulating the AI industry

• Use incentives such as tax breaks, grants and streamlined IP processes to support AI‑driven firms in sectors like energy, healthcare, finance, transport and manufacturing.

• Lead with public sector AI adoption and structured public‑private partnerships to de‑risk innovation and demonstrate impact at scale.

International cooperation

• Participate in global forums and partnerships to shape AI standards, enable trusted cross‑border data flows and tackle shared risks.

• Co‑develop international AI projects to pool resources and expertise while preserving national control over critical capabilities.

“The journey towards sovereign AI is complex and requires thoughtful and long‑term strategic planning and implementation on the national level,” says Alduhishy. “As nations embark on this path, the goal is not to self‑isolate but to ensure that they are not left behind in the rapidly advancing global digital race, all while safeguarding their interests and securing a competitive edge on the international stage.”