Bank of Canada Deputy Governor Says Economy Needs Small Business AI

Broader adoption of artificial intelligence by small and medium-sized businesses (SMBs) could boost Canada’s productivity, Bank of Canada Senior Deputy Governor Carolyn Rogers said Thursday (Feb. 12), according to a report by Bloomberg.

Speaking at a conference in Toronto, Rogers said that large firms are currently making the biggest investments in AI but are less likely than smaller firms to pass along the savings generated by the technology in the form of higher real wages or lower prices, according to the report.

“If all of the gains are concentrated in big firms, they aren’t likely to translate to gains across the economy,” Rogers said, per the report.

PYMNTS reported in June 2025 that SMBs across the United States are embracing AI as a way to compete against large enterprises. By automating processes, augmenting talent and accelerating decision-making, AI can enable smaller firms to bypass legacy systems and adopt an AI-first business model that can rival the offerings of large incumbents.

Verizon Business’ 2025 State of Small Business Survey found that 38% of SMBs are integrating AI into their operations. Twenty-eight percent are deploying AI for marketing and social media, 24% use it for written communications, and nearly a quarter use it to power digital personal assistants that can help with customer service, according to the report.

Bloomberg reported in June 2025 that AI is one of the factors driving SMBs to reduce their number of middle managers. Among businesses of this size, the average number of direct reports for each supervisor doubled from three in 2019 to six in 2024, the report said, citing figures from payroll services provider Gusto.

SMBs interviewed for the report said AI was performing tasks previously done by middle managers, such as generating slide decks and project plans and collecting feedback.

The PYMNTS Intelligence report “Consumers Stop Sampling AI and Start Relying on It” found that among consumers, there is an intensifying engagement with AI, with users embedding the technology into daily workflows such as shopping and financial management. The report found that 10% of all users and 19% of millennials are “power users” who perform 27 or more AI-driven tasks per month.

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