KPMG launches eight execution imperatives for Canadian tech leaders

Canadian technology leaders have entered 2026 with a sharper focus on execution as organisations seek stronger returns from significant investments in artificial intelligence, data and cloud platforms.

KPMG Canada has released "The 8 execution imperatives for Canadian tech leaders," advising on how to take digital strategies to the next level. 

Informed by a sample size of 150 Canadian executives across eight industries, the imperatives set out eight priorities expected to shape performance in 2026. Ninety per cent of respondents work at organisations with revenues between CAD $1 billion and CAD $10 billion. Thirty per cent are members of the C-suite, reflecting a strategic focus rather than a purely operational one. The findings suggest that while investment remains strong, many organisations are struggling to scale projects and deliver consistent returns.

Treating data as a product

Canadian organisations report high levels of maturity in enterprise data management. Ninety-two per cent say they have optimised their data management capabilities, while 68 per cent report that their data and analytics strategy is funded and scaling. Seventy-seven per cent plan to increase data and analytics budgets.

Despite this investment, stronger foundations have not consistently translated into new sources of commercial value. The survey highlights the need to treat data as a product rather than a back-office asset in order to generate new revenue streams and customer-facing services.

The report suggests that "true data-driven culture" requires universal access to relevant data, including eliminating internal data silos and putting forth investment into architectures that allow data to flow across organisations.

"Canadian organizations are starting to realize they need to address their data in order to be successful with AI. They have worked on data foundations, governance, controls, and management for the last 10 years, and now with all the AI use cases they are running, they recognize they have to go back to that foundation and look at it with a new mindset," said Ven Adamov, Partner, National Leader, Data and Analytics Risk Services, KPMG Canada.

Scaling AI for enterprise

AI remains central to future competitiveness. Fifty-six per cent of respondents have made strategic AI investments, with active use cases delivering value, yet only 31 per cent are deploying AI at scale across the enterprise.

While 58 per cent say their AI and automation strategy is funded and scaling, and 81 per cent plan to increase their budgets, more than half struggle to demonstrate or communicate the value of AI  to stakeholders.

The gap between pilot projects and enterprise deployment remains a key constraint on returns. KPMG Canada reports that pilots will need stronger AI governance and clearer, more disciplined processes for expanding operations. Additionally, scaling will require strategic investment and shared accountability between the technology and business teams to embed AI into business operations.

"To transform the organization not only from a productivity perspective but also a revenue perspective, you need to make commensurate investments in data quality, data strategy, and data governance. Emphasize focus on right-sizing data investments that align to ambition, and do not cut corners," said Sanjay Pathak, Partner and National Leader, Technology Strategy and Digital Transformation Services, KPMG Canada.

Cloud environment for agility and efficiency

Cloud adoption is widespread. Eighty-nine per cent report high maturity in optimising network and cloud infrastructure, and 75 per cent plan to increase budgets for XaaS and cloud technologies.

However, 53 per cent acknowledge that efforts to maximise speed or cost efficiency have led to trade-offs that negatively affect areas such as security or scalability.

Hybrid cloud environments often include on-premises legacy systems that absorb resources and limit agility. Providers are introducing more flexible pricing models, creating opportunities to modernise legacy systems and manage technology debt more effectively.

KPMG recommends designing hybrid and multi-cloud models with specific intent, using AI to optimise cloud performance and costs, retiring or refactoring legacy systems to reduce tech debt, and establishing financial operations practices that link cost to performance.

"Cloud providers are becoming more innovative in how they offer their pricing structures, giving Canadian organizations the chance to modernize their legacy systems and manage their technology debt more efficiently. It requires strong discipline to review systems regularly and ensure they are running as efficiently and cost effectively as possible to drive ROI," said Amardeep Johar, Partner, National Leader, Enterprise Solutions, KPMG Canada.

Cyber resiliency and digital sovereignty

Geopolitical instability and advances in AI-enabled fraud are reshaping the risk landscape. Security and digital sovereignty are moving up the executive agenda.

Only 61 per cent say their cybersecurity strategy is fully funded and scaling today, although that rises to 95 per cent over the next year. Thirty per cent cite cyberattacks as a leading AI-related concern, and 28 per cent identify deepfakes or synthetic content.

The report lists setting practical goals for digital sovereignty, prioritising selected coverage over complete coverage and working with external partners to speed up execution among its recommended actions.

"We have come to a point where technology can accomplish things that were science fiction only a few years ago, but without the right guardrails, the risks multiply just as quickly. Strong governance and strong security practices are no longer optional. They are essential for building resilience and maintaining trust," said Kareem Sadek, Partner, Advisory, National Tech Risk Leader, Trusted AI/ Digital Assets & Cryptoassets CoE Leader, KPMG Canada.

Workforce impact

Technology returns increasingly depend on workforce capability.

More than 30 per cent of full-time equivalent capacity is expected to come from the digital workforce, including AI agents and automation, within two years.

KPMG Canada recommends investing in employee upskilling and creating environments that foster AI experimentation and empower workers to deliver high-value work to the business.

"We all know and have experienced how enterprise change is hard, but AI offers the greatest opportunity we've seen in decades to build a culture of experimentation. When leaders give their people permission to test, learn, and iterate, you transform AI from a source of uncertainty into a powerful engine for curiosity, creativity, and long term competitiveness," said Safdar Mahmood, Chief Technology Officer and Partner, Advisory, KPMG Canada.

Innovation governance

Just over a quarter of Canadian respondents identified themselves as innovators or early adopters, while 59 per cent considered themselves fast followers and 13 per cent as slow followers. 

Additionally, 91 per cent of respondents said investing in advanced technologies will be the primary driver of competitive advantage over the next three years, while 85 per cent believe they will need to take more risks with emerging technologies to remain industry-relevant.

KPMG Canada recommends clear governance, proactive innovation planning, and structured criteria, while balancing risk with experimentation.

Shift short-term metrics to long-term ROI

Canada is lagging behind in return on investment (ROI) compared to global peers, but  that might be an advantage. The firm says that lower short-term ROI reflects a more strategic AI approach to prioritising long-term outcomes.

"There is a significant opportunity to monetize, or non-financially recognize, the benefits that accrue from investments and innovation. These benefits may not offer an immediate financial payoff, but if they shift culture or reshape how people approach problem solving, they can create a new wave of competitiveness," said Pathak.

These sentiments were echoed by survey respondents, with 95 per cent saying they take a long-term,  innovation-led approach to investing in technology.

Expanding multi-party partnerships

KPMG recommends that Canadian technology leaders transition from vendor engagement partnerships to a new model based on multi-party innovation ecosystems, in which partners collaborate on shared goals and build  solutions with other organisations.

97 per cent of respondents said they plan to expand their tech ecosystems and partnerships to gain meaningful experience necessary to grow.
   

  "If businesses and government collaborate and partner on innovation with discipline and based on shared values, we can achieve our goals and share in each other's success," said Adamov.   

The insight report concluded that technology itself cannot create value, but rather serves as a tool to enable it. The full whitepaper can be found here.