KPMG in Canada's Generative AI Adoption Index shows the tools drive both quality and productivity gains

TORONTO, Nov. 30, 2023 /CNW/ - Canadians are increasingly using generative artificial intelligence (AI) tools at work, with nearly a quarter (22 per cent) saying they now use the technology to help them do their jobs, finds new research from KPMG in Canada.

KPMG's latest Generative AI Adoption survey of 4,515 Canadians found that not only are the number of Canadians using the tool growing, but those who use it are doing so more frequently than just six months ago. More than six in 10 (61 per cent) generative AI users now use the technology multiple times a week for work purposes, up from five in 10 (52 per cent) in May. One in five Canadians are using generative AI daily.

"The incredible speed of adoption after just one year of being introduced to the general public shows how generative AI has not only revolutionized the way people work, but it's supercharged the speed of technology innovation as well, with breakthroughs happening at a much faster rate," says Seamus Blackmore, a partner at KPMG in Canada and Toronto-based product leader in Lighthouse, the firm's emerging technology practice.

"Many generative AI systems have already evolved from large language models to being multi-modal systems, meaning they create content from photos or voice commands rather than just text prompts. For business leaders, it's imperative to keep up with this rapidly evolving technology, understand how it could affect their business, and adapt their strategies accordingly if they want to compete."

Mr. Blackmore notes that adoption of the tool in the workplace is growing at an annualized growth rate of 32 per cent, which suggests that half of all Canadian workers could be using it within three years.

"When the tool first became available, workers were experimenting with it to see what it could do and if it could help them work smarter. Our survey clearly shows that generative AI has become a key resource for many Canadian professionals, with more than nine in 10 users saying it improves their work, and seven in 10 saying it's essential to managing their workload," Mr. Blackmore notes.  

KPMG created Canada's first-ever Generative AI Adoption Index to measure the intensity by which Canadians are using generative AI tools in the workplace, with the goal of understanding and analyzing the risks and benefits of the technology to organizations and society.

The Index now stands at 14.6, reflecting a 28 per cent growth rate since May 2023, when KPMG introduced the metric. A score of 100 indicates mass adoption.

With generative AI uptake among Canada's labour force growing over the past six months, trends are emerging on how employees are using the technology at work. Users are more diligent about checking the accuracy of content generated by AI, and they're more transparent with their employers about their use of the tools.

• 20 per cent of generative AI users are using the technology daily (up from 18 per cent in May)
  
  • 41 per cent say they use it a few times a week (up from 34 per cent)
• 77 per cent say their employers know they use generative AI at work, (up from 64 per cent)
• 55 per cent say they always check the accuracy of information produced by generative AI (up from 49 per cent)
• 90 per cent say generative AI tools have enhanced the quality of their professional work (up from 84 per cent)
• 72 per cent say using generative AI is essential to addressing their workload (up from 65 per cent)
• 76 per cent say using generative AI tools has allowed them to take on additional work that they would not have had the capacity to take on (up from 67 per cent)

The survey found that that employees using generative AI at work are experiencing higher productivity gains than first reported months ago. Nearly six in 10 (58 per cent) users say generative AI helps them save between one to five hours of work per week, up from 55 per cent in May.

Mr. Blackmore says that as generative AI matures, more users are learning how to harness its benefits, leading to increased productivity. "Since generative AI was introduced to the general public one year ago with the release ChatGPT, users have become more knowledgeable about how to make effective prompts, which in turn yields better results more quickly - and they probably have an edge at work because they're saving more time as a result," he says.

More than three-quarters of users (76 per cent) rely on publicly available generative AI tools to help with their work tasks, while the other quarter (24 per cent) use private generative AI tools built exclusively by their employers.

Interestingly, employees using private AI platforms for work are experiencing higher productivity gains than those using publicly available tools. Just over half (51 per cent) of users who rely on private tools save more than three hours of work each week, compared to 40 per cent using publicly available platforms.

Marc Low, a Vancouver-based director at KPMG Ignition, the firm's innovation lab, says the recent proliferation of bespoke enterprise generative AI platforms is making it easier for organizations to implement their own systems as they become more accessible, cheaper and more powerful.  

"We're likely to see more organizations adopting private generative AI systems as access to customizable tools continues to expand - and the more employees use these tools, the more they will reap the benefits."

Mr. Low says many organizations are interested in adopting private generative AI systems but hesitate to jump in because they are overwhelmed by the number of new tools entering the market, frequent technology updates and the constantly changing dynamics of the market.

"There's a lot of noise around generative AI. For business leaders, it can lead to serious FOMO (fear of missing out) and the desire to jump in quickly in an effort to keep up with competitors, but that can lead to poor decisions and wasted investments," Mr. Low says.

He suggests organizations do a thorough assessment of how generative AI will impact their operations, and then identify a part of the business where they can experiment and test the technology in a structured way. He also recommends organizations explore a range of generative AI tools and use cases to test and validate impact, value and uptake.

"Adopting generative AI because it's the latest trend or because everyone else is doing it is not a sound business strategy. Organizations need to be intentional about generative AI; define why it's needed, where it will have the greatest impact, and how to measure improvements in productivity and competitiveness to ensure return on investment," Mr. Low says.

Mr. Low says it's noteworthy that of the respondents who aren't using generative AI tools for work, more than one-quarter (27 per cent) don't see the benefits of using the technology in their roles, and nearly the same proportion find them too complicated or don't have the proper training on how to use them. "This suggests that more education is needed for employers and employees to fully understand how transformative generative AI can be if integrated and deployed effectively," he adds.

KPMG in Canada and Microsoft Canada recently launched the Operational Risk Skills Development Centre, a co-developed initiative in Quebec that offers free hands-on French training courses on generative AI for C-Suite and board members. For more information, visit info.kpmgeducation.ca

The Generative AI Adoption Index measures the use of generative AI tools among the Canadian population and is weighted on frequency of use, with a score of 100 indicating mass adoption. The Index is based on a KPMG in Canada survey of 4,515 Canadians conducted from October 20 to November 6, 2023, using Sago's Methodify online research platform. Of the total surveyed, 1,004 respondents said they use generative AI tools. The margin of error is +/- 3 percentage points, with a confidence level of 95 per cent.

KPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country. 

The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see kpmg.com/ca

SOURCE KPMG LLP