Despite AI dominating headlines, from job disruption fears to tools that promise greater productivity, many Canadians still don’t fully understand the technology. A recent global survey by KPMG International and the University of Melbourne reveals that this lack of understanding could be putting Canadians at a financial disadvantage.
The study, which surveyed more than 48,000 people across 30 advanced and 17 emerging economies (including 1,025 Canadians), ranked Canada 44th out of 47 countries in AI literacy and training. Among advanced economies, Canada placed 28th out of 30.
“Canada’s economy is facing multiple pressures – U.S. tariffs are upending global trade systems, geopolitical shifts are increasing operational risks, while technology advances at lightning speed. Now is the time for our organizations, institutions and governments to act boldly to boost prosperity and advance our competitive position — AI offers us a once-in-a-lifetime opportunity to do that,” said Benjie Thomas, KPMG Canada’s partner and CEO.
What this means for your finances
AI is increasingly being built into the financial tools Canadians use every day, from robo-advisors and budgeting apps to credit scoring systems. But if Canadians don’t understand how these systems work, they may struggle to use them effectively, or avoid them altogether, missing out on the potential benefits.
The study found that less than one-quarter of Canadian respondents had received any formal AI training, compared to 39% globally. And fewer than four in 10 Canadians said they had moderate or high knowledge of AI, versus 52% globally.
When it comes to self-reported AI efficacy — meaning how well someone believes they can use or understand AI-generated content — only 47% of Canadians felt confident, compared to 60% globally.
This lack of knowledge can have a real impact on personal finances. For example:
- Job and income security: Many high-paying roles now require basic AI literacy, and Canadians who lag in this area may find themselves less competitive in the job market
- Smart investing: AI-powered investing platforms offer low-cost, data-driven alternatives to traditional financial advice, but only if users trust and understand them
- Financial fraud and scams: A lack of understanding of how AI works can make individuals more vulnerable to sophisticated scams that use AI tools to mimic legitimate financial communications
Canadians are skeptical and that could cost them
AI literacy isn’t just about understanding, it’s also tied to trust. And the study found that trust in AI among Canadians is notably low.
Only 34% of Canadians said they trust information from AI tools, compared to 46% globally. About half of Canadians said they approve of AI use, versus more than three-quarters of respondents worldwide.
Canadians are also more likely to see AI as a threat. Nearly half believe the risks outweigh the benefits, compared to just 32% globally, despite reporting fewer negative experiences with AI.
Top concerns include:
- Cybersecurity risks: 87% of Canadians expressed concern, but only 32% have personally experienced a cyber breach
- Loss of privacy or intellectual property: 86% are concerned, yet only 38% report being directly affected
While these concerns are valid, they may also contribute to Canadians opting out of financial innovations that could help them save more, invest smarter or protect themselves from fraud.
Bottom line
Canadians’ low AI literacy isn’t just a tech issue, it’s a money issue. Whether it’s getting hired in a competitive job market, making smarter investment decisions or simply understanding the tools used to manage your finances, a basic grasp of how AI works is becoming essential.
As AI continues to reshape the financial landscape, Canadians who build their literacy and trust stand to gain the most. Those who don’t may find themselves falling behind.
With files from Nicholas Sokic
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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