It’s not enough for businesses to say “we use AI” as a catch-all meant to solve every industry challenge or simply to keep up with the competition.
Integrating artificial intelligence into a company’s operations and services, in some form or another, is becoming a baseline need as Canada enters a new era of AI.
This doesn’t necessarily mean creating new systems from whole cloth—or rather, code. Many businesses in the technology sector aren’t fully leveraging the AI tools currently available to make their offerings more efficient for customers.
Being intentional with AI systems—and subsequently articulating that differentiation—is critical as tech companies look to maximize their financial resources and spend thoughtfully in a competitive market with limited available funding.
Shifting sentiments, new opportunities
Despite a year of economic challenges in many sectors, Canadian business confidence is growing as sentiment improves in sectors like tech and financial services.
This window could see more businesses in these sectors start to shift focus from plugging short-term holes to establishing fulsome longer-term strategies.
That’s where leveraging AI can be the most beneficial. However, the funding landscape remains tenuous for tech companies, and most businesses that had to streamline operations aren’t likely to go on a sudden hiring spree.
It’s critical for Canadian tech companies to understand what AI systems can and can’t solve. From an operational perspective, they can be helpful in ensuring internal efficiency and making the most out of available capital.
The notion of AI replacing jobs is being eclipsed by the concept that jobs can be repurposed to maximize the technology’s use. That approach signals a shift from viewing AI as a short-term stopgap to integrating it as part of a holistic, future-focused approach to a company’s strategy.
Meeting customers’ high expectations is another opportunity to thoughtfully implement AI systems. Consumer sentiment can be fickle, so leveraging these systems in a way that appeals to clients’ needs is essential.
Redefining value
Then there are the systems themselves. Simply adding a chatbot and touting AI use is insufficient, trite and increases the risk of relying on a short-term solution at the expense of thoughtful technological exploration.
But before weighing the costs of developing their own AI system, businesses may find that browsing the shelves is a better option—particularly as capital efficiency remains a priority.
It remains quite expensive to create and train a model from scratch for most businesses. Using readily available services or partnering with AI-specific developers is a more thoughtful approach—as long as businesses clearly define how these systems can support their efficiency and profitability goals.
When it comes to profitability, the long-standing measurement of revenue per employee is undergoing a shift for tech companies. Many companies are looking to downsize teams or have already done so—which can place undue pressure on employees. But incorporating AI systems with intentionality can help relieve that pressure and redefine value.
This shift in focus from selling more to increasing efficiency can be a fundamental step in ensuring a company’s overall growth. Employing this approach can also allow tech businesses to deal with internal redundancies while justifying longer-term strategic efforts.
A more nuanced market
The notion of intentionality extends beyond internal strategy amid a growing shift in external capital contribution.
Canadian venture capital firms are increasingly investigating the tech sector for opportunities, while international firms are exploring investment in Canadian businesses based on the country’s burgeoning reputation as a leader in AI innovation.
While this may lead to more targeted investments for higher value, it won’t necessarily equate to more deals overall. Dry powder may be ample at the moment, but its deployment will likely still hew toward a judicious approach amid wider economic tensions.
Canadian companies should embrace the notion of differentiation by definition—articulating how you leverage AI systems can help set you apart in a highly competitive market.
The takeaway
At this stage in AI’s adoption cycle, nearly every business has its own take on the use of these systems. For businesses that don’t, the question of why is becoming more challenging to answer.
For Canadian tech companies, defining how and why they are leveraging AI is essential to long-term strategic stability. That attention to detail can also serve as a competitive advantage for tech companies, as intentionality can minimize unnecessary spending at a time when profitability is critical in the sector.
Like AI itself, intentionality can be misconstrued as a buzzword to appeal to a discerning clientele. For tech businesses to succeed, leaders must be cognizant of the internal and external opportunities available to maximize the use of available funds and deliver on a clearly defined approach to achieving their goals.
