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Canada’s Tech Workforce Grows Despite Slow AI Adoption

Canada’s technology sector continues to expand even though many companies hesitate to adopt cutting-edge tools like artificial intelligence. The country is balancing skilled employment growth with innovation challenges.
updated 1 week ago
Artificial Intelligence - Photo: Havard Graduate School of Education
Artificial Intelligence - Photo: Havard Graduate School of Education

Tech Workforce on the Rise

According to a recent report by CompTIA, net tech employment in Canada reached about 1,445,188 workers in 2024. That represents approximately a 1.9 % year-over-year increase. The report forecasts growth of 1.4 % in 2025.

The tech industry now accounts for roughly 5.8 % of Canada’s economic output, or about CAD $131.6 billion. Large provinces such as Ontario and Quebec lead employment concentration in technology. Meanwhile, the professional services, financial services and public administration sectors absorb many tech professionals.

Innovation Agenda and Emerging Technologies

Canada positions itself as a hub for innovation in key technology domains. According to Invest in Canada the country is active in artificial intelligence, cybersecurity and ocean technology.

In “clean-tech” and marine technology, Canada leverages its extensive coastline and renewable resources. The national AI strategy links research centres with commercialization efforts.

A recent review outlines five major themes reshaping Canada’s tech scene: AI reaching an inflection point, automation accelerating, digital infrastructure becoming central, clean energy integration, and rising global competitiveness.

AI Adoption Lags Despite Promise

Despite strong innovation ambitions, many Canadian firms are slow to adopt AI. One article notes that only a small portion of businesses have integrated AI into their operations.

The gap stems from barriers like legacy technology, skill shortages, and high implementation costs. Meanwhile, smaller firms may struggle with resource constraints or unclear benefits. The trend signals that growth will depend not just on invention, but on practical deployment.

Supporting Innovation: Clusters and Programs

To address these challenges, Canada deploys federal and provincial support programs. The Global Innovation Clusters initiative allows business-led clusters to receive up to CAD $950 million for innovation projects.

The Canadian International Innovation Program (CIIP) supports SMEs in technology commercialization, particularly those exploring global markets.

These efforts aim to bridge the gap between research and commercial success — a widely-acknowledged weakness in Canada’s ecosystem. One analysis stated that Canada has more than 130 innovation programs but lacks a cohesive system.

What It Means for Stakeholders

For job-seekers: Opportunities in tech roles are increasing, but skills in AI, cybersecurity and data are especially in demand. For companies: Investment in digital transformation may be essential to remain competitive.

For policymakers: The challenge is to align innovation funding, workforce development and industry needs.

Outlook

Looking forward, Canada’s tech sector appears poised for steady growth. Workforce expansion continues, and major domains like AI, clean tech and cybersecurity offer strong potential.

However, the real test will come with the effective implementation of these technologies across firms and the commercialization of innovation. If Canada succeeds, it could move from being a research leader to a tech deployment leader.

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