Canadian companies outpace global peers in AI adoption for finance, says KPMG

Canadian companies are significantly ahead of their international counterparts in integrating artificial intelligence into critical financial activities, according to a comprehensive new survey conducted by KPMG International. As more organizations incorporate data-driven technologies to streamline everything from tax management to financial planning, Canada has emerged as a leading environment for AI adoption. Respondents to the survey reported seeing higher returns on their AI investments than their global peers, demonstrating that early integration and ongoing commitment to advanced technology may offer a powerful edge. With more than eight in 10 Canadian firms already piloting or using AI in their finance function, the country appears primed to remain at the forefront of innovation in this field.

Why Are Canadian Companies Surpassing Global Peers in AI Adoption?

Many observers believe the country’s proactive approach to technology, combined with strong support for research and development, has helped Canadian companies move quickly in integrating AI adoption into their finance function. In fact, the KPMG survey, which polled 2,900 organizations across 23 countries—100 of them from Canada—indicated that 82 percent of respondents in Canada have at least launched pilot programs for artificial intelligence. Globally, that figure reached just 71 percent. According to a finance transformation leader from KPMG in Canada, cited indirectly, organizations increasingly view AI tools as indispensable for timely decision-making, improved data accuracy, and advanced trend analysis. These factors enable them to reduce errors, manage risks more effectively, and forecast outcomes with greater precision.

How Is AI Transforming the Finance Function?

AI adoption is not limited to a single area within finance. Instead, it permeates various financial processes, allowing Canadian companies to automate repetitive tasks and free up valuable human resources for strategic decision-making. Experts in financial consulting suggest that routine accounting procedures, including invoice processing and reconciliation, benefit from machine learning algorithms that reduce manual workload and enhance precision. Another area where AI is making a noticeable impact is in financial planning, as predictive analytics provide deeper insights into market changes, consumer behavior, and emerging trends. Additionally, the technology offers a more robust approach to risk assessment by detecting anomalies and highlighting potential red flags in real time.

What Did the KPMG Survey Reveal About ROI and Competitive Advantages?

The survey unearthed a notable finding that nearly seven in 10 Canadian respondents feel the return on their AI investments meets or surpasses expectations, exceeding the global average by eight percentage points. Industry insiders see these positive outcomes as a compelling argument for deeper integration of AI adoption within the finance function. A specialist in innovation at KPMG in Canada indicated indirectly that higher adoption rates in areas like tax management and treasury management often correlate with greater ROI. For instance, while 34 percent of global organizations have begun employing AI in tax-related operations, 63 percent of Canadian companies reported either piloting or actively using AI for these functions. The higher adoption rate appears to come from a combination of early investment, strong data governance, and a willingness to align technology with organizational goals.

Which Challenges Do Companies Face, and How Are Leaders Overcoming Them?

Even though Canadian companies appear to be reaping the rewards of AI adoption in their finance function, several hurdles persist. One key challenge identified is the limited availability of skilled professionals who can develop, maintain, and refine AI systems. Another is the prevalence of legacy systems that may not integrate seamlessly with new AI-driven platforms. Experts also caution that data quality is paramount; flawed or inconsistent data can jeopardize the accuracy of AI insights. Despite these obstacles, companies that KPMG classifies as leaders—roughly 25 percent of Canadian respondents—are devoting more resources to mitigating these issues. Their commitment includes improving staff training, establishing specialized teams to handle data security and compliance, and making sure that AI tools are governed by robust policies and controls.

Are There Specific Advantages in Tax and Accounting?

Tax management is emerging as a notable strength for Canadian firms, with many placing particular emphasis on enhanced data analysis and automation to navigate complex tax regulations. One tax transformation leader at KPMG in Canada, speaking indirectly, suggested that AI tools can streamline compliance checks, fill out complex forms with fewer errors, and even forecast how future regulations might affect business decisions. While fewer than one in five global organizations has moved beyond pilot programs in the tax function, many Canadian companies are scaling up these solutions more decisively. In accounting, real-time anomaly detection tools offer the potential to spot irregularities, reduce fraud, and provide continuous monitoring of financial transactions, thereby boosting overall efficiency and public trust.

What Role Do Auditors and Assurance Services Play in Responsible AI Use?

As AI adoption becomes more prevalent, questions arise about oversight and transparency. Many Canadian companies are looking to their external auditors for assurance regarding their use of AI in everything from routine accounting to high-level financial modeling. One audit innovation leader at KPMG in Canada noted indirectly that clients are increasingly asking auditors to examine internal controls, assess governance maturity, and potentially validate third-party AI applications. However, there is still a relative lack of clear regulatory standards governing AI deployment in finance, underscoring the need for collaboration among auditors, organizations, and regulators. Given that advanced algorithms can significantly transform traditional auditing methods, real-time auditing powered by AI may soon become a standard practice, bolstering both efficiency and credibility.

Where Does the Future of AI in Canadian Finance Lead?

Although Canada is already emerging as a leader in AI adoption, experts insist that organizations have only scratched the surface of these technologies’ possibilities. Many see potential in expanding AI to other mission-critical areas of the finance function, such as procurement, investor relations, and enterprise risk management. As more data is collected and analyzed, predictive models should become increasingly sophisticated. A common view among industry observers is that success will hinge on ongoing investment, staff training, and close alignment of AI tools with corporate strategies. Canadian companies, which are already capitalizing on these trends, may well drive global best practices for how AI transforms modern finance.