Canadian business investment in the technology (IT) sector is at its lowest level in six years, partly due to inflation and labor shortages.

This drop in investment is delaying digital transformation activities and slowing hoped-for post-pandemic recovery, NOVIPRO/Léger Group’s survey showed on Monday.

Thus, according to the study, Quebec is the province lagging behind in the implementation of artificial intelligence and advanced data analytics, with 45% of companies having started the transition compared to 63% of companies. Ontario is the first in the country.

Only 76% of Canadian companies surveyed plan to invest in this space, compared to 92% in 2019, before the pandemic.

In order of importance, inflation is the first cause, followed by telecommuting, labor shortages, recession, environmental disasters and international tensions that are changing business decisions.

Although 54% of companies say they have had positive results from implementing advanced data analytics and artificial intelligence or are in the process of implementing them, only 13% of Canadian companies plan to invest in them within the next two years compared to 36% in 2019.

“The study shows that only 38% of companies believe that advanced data analytics and artificial intelligence will transform their business within two years. They underestimate the breathtaking development this technology will bring and the impact it will have on their growth,” said David Chamandy, CEO of Groupe NOVIPRO.