Canadian small businesses are harnessing the power of AI to drive operational efficiency and accelerate growth. New data from the Intuit QuickBooks Small Business Insights Survey, which surveyed 1,031 small business owners and decision-makers across Canada, highlight a substantial surge in AI adoption.

AI adoption spikes, boosting Canadian small business productivity and driving growth

Data reveals a large upswing in AI adoption among Canadian small businesses. Six in 10 (62%) respondents report they now use AI at least monthly. This marks a significant leap from 51% in January 2025, signaling a growing recognition of AI's potential benefits. The most common functions supported by AI include marketing (43%), customer service (35%), and administrative tasks (32%), reflecting how its adoption is propelling core business operations.  

AI usage varies from daily to monthly frequencies, but a consistent theme is its impact on productivity which has seen a substantial uptick. Nearly 3 in 4 (72%) small businesses leveraging AI report enhanced productivity (up from 50% in January). This productivity boost is accompanied by a shortening of workdays (29%). Revenue growth is another key outcome, as small businesses using AI were 16x more likely to report growth (32%) than decline (2%).

Just as AI is playing a pivotal role in small businesses’ ability to punch above their weight, a wider swath of digital tools is helping small businesses wear many hats. Respondents report their most useful digital tools have helped save time (69%), improve efficiency (67%), reduce operational costs (38%), and facilitate getting paid faster (26%).

Navigating challenges: Inflation, cash flow, and global markets for Canadian small businesses

While technology continues to contribute to small business success, challenges persist. Inflation stands out as a chief concern, with 47% of respondents identifying it as their most significant obstacle and causing anxiety for 62% of those who cite it as a challenge. These economic pressures are deepened by cash flow issues affecting nearly half (48%) of small businesses surveyed. At the same time, with 49% of these businesses relying on international markets like the US (36%) and China (18%) for procurement, the instability of external economic fluctuations can create vulnerabilities. 

Sustained, strong financial health for a majority of Canadian small businesses 

Despite the challenge of rising costs, this marks the fourth consecutive quarter where at least 80% of Canadian small businesses have reported good financial health. This consistent stability creates an environment ripe for scaling efforts. Accordingly, 3 in 4 (75%) respondents report their business is hungry for steady or fast growth, aligning with the trend of 40% of respondents planning to expand their workforce over the next quarter. 

Keep reading

Get all the data from the Intuit QuickBooks Small Business Insights Survey, updated every three months.