Nearly nine out of ten Canadian organizations have adopted generative AI tools, making it the top IT spending priority for 2025, according to a new report by Amazon Web Services (AWS) and Access Partnership. But while interest is high, a lack of skilled professionals is slowing the move from pilot projects to full-scale deployment.

The report, based on a survey of 424 IT decision-makers in Canada, shows 42% of organizations now rank generative AI as their top budget focus—surpassing even security tools, which came in at 34%. Most organizations have already started experimenting: 85% ran AI experiments in 2024, but only 39% of those are expected to reach production this year.

“Generative AI and security tools are emerging as the primary focus areas in organizations’ 2025 IT budgets,” the report notes.

One of the biggest barriers is the talent gap. Just over two-thirds (68%) of organizations plan to train existing employees in AI skills, and 87% plan to hire new staff with generative AI experience. Still, limited budgets, unclear training needs, and implementation challenges are slowing progress. Only 50% of organizations have a formal training plan in place today.

To address the leadership and strategy needed for AI transformation, 52% of organizations have already appointed a Chief AI Officer (CAIO), and another 23% plan to do so by 2026. Meanwhile, most organizations are taking a hybrid approach to deploying generative AI tools—combining internal capabilities with third-party vendors. Just 21% plan to build in-house models from scratch, while 71% will rely at least partially on external providers.

The study suggests that Canadian organizations are embracing AI quickly, but translating enthusiasm into enterprise value will require more than investment—it will take leadership, strategy, and skills development at scale.

AWS Canada: From Experimentation to Integration: Canadian Organizations Embrace Generative AI as a Priority