Most Canadian small business owners say artificial intelligence has yet to meaningfully affect their operations, according to a new survey by Zensurance that found many are focused on more immediate business priorities.
The 2026 Zensurance Small Business Confidence Index, based on a survey of 1,000 Canadian small business owners, entrepreneurs and self-employed professionals, found that nearly one-third of respondents, or 32 per cent, said AI has had little to no impact on their business. Another 27 per cent said they were unsure how the technology applies to their work.
The findings suggest that despite the growing attention around AI, adoption among many small businesses remains limited as owners weigh technology investments against operational and financial concerns.
AI adoption remains limited
Among respondents who have experienced an impact from AI, the results were mixed. One-quarter reported a positive effect, while nine per cent said the technology had generated meaningful productivity gains or cost savings. Seven per cent said AI had hurt their revenue or client base.
The survey also found that some business owners are concerned about the potential effects of AI on their competitiveness and workforce. Among those with concerns, 13 per cent said AI could make their products or services less competitive, while 10 per cent said AI tools were not reliable or accurate enough to trust. Another nine per cent cited concerns about job displacement and the loss of human labour.
For businesses deciding where to direct resources, other priorities ranked ahead of AI. Twenty-six per cent of respondents said they planned to introduce new products or services, while 22 per cent planned to expand into new markets and 20 per cent planned to invest in new tools or equipment. Fifteen per cent said they planned to learn about or invest in AI.
The same pattern emerged when respondents were asked how they would use a hypothetical $10,000 business grant. Twenty-six per cent said they would set the money aside for cash flow, while 20 per cent would use it to pay down debt and 17 per cent would invest in tools or equipment. Seven per cent said they would put the money toward AI.
Confidence remains a concern
The survey comes as small business confidence has declined for three consecutive years, according to earlier findings from the index. Just under half of respondents, or 49 per cent, said they remained confident about the months ahead.
Zensurance said the findings show business owners balancing potential opportunities from innovation with the immediate demands of operating their businesses, including maintaining cash flow and reducing debt.
The company also connected those priorities to business risk, saying that protecting financial stability against unexpected setbacks remains an issue for small businesses.
“Small business owners are constantly weighing where to invest their limited time and resources,” said Danish Yusuf, CEO and Founder of Zensurance. “This year’s findings show they are prioritizing stability, operational strength and resilience. Whether that means adopting new technology, improving efficiency or protecting against unexpected setbacks, a proactive approach is what helps businesses stay strong as conditions keep changing.”