Technology executive Yanik Guillemette said Saturday that a growing AI productivity gap is the most significant threat to the survival of Canadian small and medium enterprises.

This disparity threatens the long-term competitiveness of Canada's business landscape, particularly as firms in the U.S. accelerate their adoption of automation and machine learning.

Guillemette released a national study in April 2026 [4] focusing on AI adoption within the SME sector. The findings indicate that only about 30% [1] of Canadian SMEs are currently utilizing AI. However, those businesses that have integrated the technology are roughly 24% more productive [2] than those that have not.

Speaking from Montréal, Guillemette said the divide between early adopters and laggards is creating a precarious environment for the majority of domestic firms. He said that the ability to scale operations and maintain efficiency is now tied directly to technological integration.

"If you don’t innovate, you’ll evaporate," Guillemette said.

The executive said that the productivity gap is not merely a technical hurdle but a systemic risk. He said the AI productivity gap is the biggest threat facing Canadian SMEs today.

To address these shortcomings, the Business Development Bank of Canada has launched the LIFT program. This initiative provides $500 million [3] in funding to help Canadian businesses integrate new technologies and close the efficiency gap.

Guillemette said the urgency for this transition cannot be overstated, as the window for SMEs to catch up to international competitors is closing. He said that the 24% productivity advantage [2] enjoyed by AI-enabled firms creates a compounding lead that makes it harder for non-users to compete on price and speed.

“"If you don’t innovate, you’ll evaporate."”

The disparity in AI adoption suggests a bifurcated economy where a small minority of tech-forward SMEs may consolidate market share while the majority struggle with stagnant productivity. The launch of the $500 million LIFT program indicates that the Canadian government and financial institutions view this technological lag as a critical economic vulnerability that requires direct capital intervention to solve.