Canadian B2B software companies are lagging behind their global counterparts in the adoption of agentic AI, according to a new report by Toronto-based investment firm Georgian. The report, based on feedback from over 500 leaders at Canadian growth-stage and enterprise B2B software companies, highlights a significant gap in AI adoption between Canada and countries like the United States, the United Kingdom, and Israel. This disparity could have serious implications for Canada’s competitive position in the global tech landscape.
### What Is Agentic AI and Why It Matters
Agentic AI refers to systems capable of making autonomous decisions or taking actions without direct human intervention. These AI agents can streamline operations, enhance customer interactions, and drive efficiencies across various business processes. For B2B software firms, adopting agentic AI can mean the difference between leading the market or being left behind. However, the Georgian report reveals that only 44% of Canadian firms have integrated agentic AI into their operations, compared to 67% in the U.S., U.K., and Israel. This growing gap, which was only 13 percentage points in June 2025, underscores the urgency for Canadian firms to accelerate their AI initiatives.
### Competitive Context: Canada vs. The World
The report paints a challenging picture for Canadian B2B software companies trying to compete on the global stage. While Canadian businesses have made strides in AI maturity overall, their progress in agentic AI remains sluggish. The survey identifies the integration of AI agents with legacy systems as a significant hurdle for Canadian firms. In contrast, international peers seem to be overcoming these challenges more swiftly, enabling them to ship products faster and capture market opportunities more effectively. This competitive lag could hinder Canadian companies’ ability to innovate and attract international investments.
### Implications for Founders, Engineers, and the Industry
For Canadian founders and engineers, the report serves as a wake-up call. The slow adoption of agentic AI suggests potential missed opportunities for innovation and growth. Founders need to prioritize AI integration as a core component of their business strategy to remain competitive. Engineers, on the other hand, must focus on developing skills and expertise in AI technologies to drive these initiatives forward. For the broader industry, the findings highlight the need for increased collaboration between tech companies, investors, and policymakers to address the barriers hindering AI adoption.
### What Happens Next?
The Georgian report suggests that Canadian B2B software firms must act swiftly to close the agentic AI gap. This involves not only investing in AI technologies but also fostering a culture of innovation and agility. For investors, this means identifying and supporting companies that are poised to make significant strides in AI adoption. For founders and engineers, it means embracing AI as a strategic priority to ensure long-term success and competitiveness. As the market for AI agents continues to grow, the firms that adapt and innovate will be the ones that thrive in the rapidly evolving technology landscape.
