Investment by Canadian companies in the technology (IT) sector is at its lowest level in six years, particularly due to inflation and labor shortages.

This drop in investments is causing a delay in digital transformation activities and slowing the hoped-for post-pandemic recovery, the NOVIPRO/Léger Group survey showed on Monday.

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

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

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

Although 54% of companies say they have achieved 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 it within the next two years, compared to 36 % in 2019.

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