Canadian businesses are moving quickly to adopt agentic artificial intelligence, but most say they lack the data, processes, skills and governance needed to deploy the technology effectively, according to new research from SAP SE and Oxford Economics.
The study found that 66 per cent of Canadian organizations are already piloting agentic AI, which uses autonomous agents to execute complex business tasks, while 97 per cent said they are not fully prepared to deploy and govern the technology.
AI investment expected to deliver higher returns
The findings point to a disconnect between the pace of AI investment and the readiness of businesses to support it. The average Canadian organization surveyed expects to spend CA$39.4 million on AI this year and anticipates a 20 per cent return on that investment, with the projected return rising to 38 per cent within two years.
The research estimates that the increase could unlock an additional CA$20.2 million in value per company over two years, largely driven by expectations around agentic AI. The study also found that 82 per cent of the 200 Canadian businesses surveyed believe agentic AI has moderate to high potential.
"The technology is ready. The challenge is getting the business ready for the technology. Getting measurable value from AI requires a different approach," said Cathy Tough, Country Manager, SAP Canada. "AI that lacks business context creates activity without outcomes, and at worst introduces risk. Businesses in Canada, large and small, need to connect AI directly to the core data and processes that run their organizations and make sure it has the context and governance to drive trusted results. That's what we call the Autonomous Enterprise, where agents, processes, and people work as one, backed by trusted governance, to achieve real outcomes."
Businesses already using agentic AI reported several implementation problems. Sixty-four per cent cited higher-than-expected integration effort, while 54 per cent reported reliability or quality issues as usage increased. Nearly half, or 48 per cent, said agents had taken incorrect actions, and 44 per cent experienced inconsistent outcomes when carrying out the same process.
The research also found that 70 per cent of Canadian business leaders either agreed or were unsure that they were deploying AI agents faster than their governance capabilities could keep pace. Nearly half, or 46 per cent, said they did not have a human-in-the-loop process for autonomous workflows.
Data and governance remain challenges
The study identified broader organizational issues behind the readiness gap, including fragmented AI strategies, inconsistent data and a shortage of skills needed to manage the technology.
Only 18 per cent of Canadian companies said they take a centralized, strategic approach to AI. By comparison, 39 per cent rely on department-led strategies and 35 per cent use piecemeal approaches, according to the research.
Data was another concern. While 65 per cent of businesses said they believe they are data-ready, 73 per cent acknowledged struggling with incomplete or inconsistent data. Seventy-one per cent said they experience rework and delays because of low-quality AI outputs.
The research also points to challenges in keeping employee skills aligned with the rapid development of AI. Seventy-eight per cent of business leaders said they were not convinced their upskilling efforts were keeping pace with the technology's evolution, while 56 per cent said unauthorized or so-called shadow AI use occurs at least occasionally.
Governance was identified as another significant weakness, with fewer than one in five respondents saying their internal skills and processes were fully ready for AI governance. Only 17 per cent said their internal skills were fully prepared, while 16 per cent said their processes were fully ready.
SAP promotes enterprise-wide AI approach
The findings suggest businesses will need to focus on the organizational foundations supporting AI rather than simply increasing the number of AI tools they deploy, the study said.
"The path to value isn't just more AI, it's smarter AI operating within a trusted framework. SAP's model for the Autonomous Enterprise is simple: humans direct, assistants coordinate, and agents execute," said Anthony Robinson, Chief Technology Officer, SAP Canada. "This ensures that humans set the strategy while AI handles the orchestration and execution, all within a governed, auditable environment with humans in the loop at key moments. By embedding AI into core business processes, rather than bolting it onto a shaky foundation, we close the exact readiness gaps this study highlights and give businesses the confidence to scale."
The research, called The SAP Value of AI Report, was conducted by Oxford Economics and surveyed 2,600 business leaders across 13 countries, including 200 respondents from Canada. Participants came from midmarket organizations with 500 to 1,500 employees and enterprises with 1,500 or more employees, and respondents were required to be at the director level or above.