Quebec outpaces other provinces in generative AI adoption and integration

Tashi Farmilo

Quebec is rapidly emerging as a leader in the adoption of generative artificial intelligence (AI), with 76% of local organizations integrating this technology into their operations. This rate is well above the Canadian average of 61%, and Quebec doesn't just lead in adoption—it also excels in how deeply AI is embedded into business functions. Nearly half (46%) of Quebec businesses have fully integrated AI into their core operations, significantly outpacing the national average of 36%.

Generative AI, which allows machines to create new content such as text, images, and music, is transforming various sectors in Quebec. From monitoring compliance (50% of organizations) to automating tasks with AI-powered copilots (37%) and generating marketing materials (30%), AI is becoming an essential tool for improving productivity and efficiency. This growing reliance on AI is reshaping how businesses operate, reflecting its potential to streamline processes and fuel innovation.

David Marotte, KPMG's Leader of Data and Artificial Intelligence in Quebec, highlights the rapid pace of AI adoption: "The rapid adoption of generative AI among Quebec businesses is impressive, and the fact that the technology is being used more widely within organizations is a testament to the province’s bold business leadership, as well as to a vibrant and supportive AI ecosystem."

The potential for AI to transform Quebec’s economy is clear. An impressive 92% of organizations in the province view AI as critical to their competitive advantage, a slight increase over the national figure of 89%. Businesses are quickly recognizing that AI is not just a tool for automating tasks but a strategic asset that can drive long-term growth.

However, the adoption of AI is not without its challenges. The KPMG survey found that 78% of Quebec businesses struggle with ensuring that employees understand and are prepared to adopt AI, a rate higher than the national average. Concerns about ethical issues such as data bias, privacy, accountability, and misinformation remain significant. As noted in the report, "ethical challenges ranked second, with three-quarters of Quebec respondents citing issues such as biased data sets, privacy, accountability, transparency, intellectual property and misinformation concerns as challenging their AI implementations."

Despite these challenges, Quebec businesses are not slowing down. The survey reveals that 72% of organizations in Quebec see AI as a top investment priority, just below the national average of 75%. This may be because many Quebec companies have already made substantial investments in AI, reducing the immediate need for additional funding compared to businesses elsewhere in the country.

Marotte emphasized that adopting AI is just the first step: "But it’s not enough to simply adopt generative AI—organizations need to understand its full capabilities and have a comprehensive strategy for how to apply those capabilities across their operations effectively."

Along with AI adoption, Quebec is focusing on developing a regulatory framework to ensure that AI is used responsibly. The Quebec Innovation Council has called for a careful balance between encouraging innovation and addressing ethical concerns as AI becomes more prevalent.

As Quebec continues to lead the way in AI, its proactive approach to technology and governance could serve as a model for other regions grappling with the rapid growth of AI. With AI poised to shape the future of industries, Quebec's experience will likely influence broader discussions on how to harness its power while safeguarding privacy, fairness, and democratic values.

As David Marotte puts it, "AI is not just about improving efficiency, it's about transforming how we work and think. Embracing it with a clear strategy and ethical oversight will shape a future where technology works for everyone, not just for a few."