In an exclusive interview with CanadianSME Small Business Magazine, Cinzia Bazzo, Managing Director of Canada at Sage, shares why many SMEs are struggling to turn AI adoption into real results. Cinzia Bazzo highlights the gap between experimentation and execution, and explains how a focused, practical approach can help businesses improve efficiency and decision-making in today’s economy.
Interview By SK Uddin
Cinzia Bazzo is the Managing Director of Canada and serves as a Board Associate at Sage, driving impactful initiatives that empower the businesses forming the backbone of Canada’s economy. Cinzia brings a wealth of experience to Sage having led transformative growth across the technology sector throughout her career. Before joining Sage, she served as Country Leader for Workday Canada, where she helped businesses unlock the power of data to overcome challenges, seize new opportunities, and streamline operations. Additionally, in her successful six-year tenure at Salesforce, she advanced to become Canada’s Country Leader for Service Cloud, a leading customer service platform. Further, she has held key leadership roles at top technology companies, including Oracle, Infor, and SAP. A passionate advocate for the Canadian tech industry, Cinzia is deeply committed to mentoring the next generation of talent and fostering digital skills among youth.
Your recent research shows that while about half of Canadian SMEs now use AI, productivity gains are stalling and digital momentum is plateauing. What is really happening behind those numbers, and why should business owners care about this gap between adoption and impact right now?
What the data really shows is that Canadian SMEs aren’t struggling to try AI, they’re struggling to turn it into real, measurable impact. About half now say they use AI, but in many cases that means experimenting with general-purpose tools rather than embedding AI into everyday business processes like finance, operations, or decision-making.
That gap between adoption and execution is why productivity gains are stalling. Businesses that deeply integrate digital tools into finance, operations, and decision-making are seeing real returns. Others are hitting a plateau because they lack the skills, confidence, or clarity on where AI delivers value.
Business owners should care because in today’s economic climate, standing still is costly. Margins are tight, labour is scarce, and uncertainty is high. AI isn’t about chasing the next trend; it’s about freeing up time, reducing manual work, and improving visibility so leaders can make better decisions. Closing the gap between experimentation and meaningful use is now essential for resilience and growth, not a future nice-to-have.
Sage warns that Canada is drifting toward a “two-speed” digital economy, with some regions and sectors pulling ahead while others lag far behind. What does that look like on the ground for small businesses, and why is this divide such a risk for Canada’s long-term competitiveness?
A two-speed digital economy means some small businesses are pulling ahead by using AI and digital tools to boost productivity, manage costs, and grow. While others are falling further behind due to cost barriers, skills gaps, or regional limitations.
We see this uneven progress clearly across Canada. Adoption and investment levels vary widely by region and sector, leaving some SMEs less competitive and more exposed to economic shocks. For example, AI adoption rates range from 56% in Québec to just 28% in Northern Canada. Finance and technology-led sectors tend to move faster, while industries like agriculture and construction often struggle to keep pace. For those businesses that are behind, it can mean higher operating costs, slower growth, and fewer opportunities to scale or export.
This divide poses a serious risk for Canada’s long-term competitiveness because SMEs are the backbone of our economy. If large parts of the country can’t fully participate in the digital economy, national productivity suffers. Closing this gap isn’t just about technology; it’s about ensuring businesses in every region have a fair chance to contribute, compete, and grow.
Many SME leaders say ambition isn’t the issue—execution is. Based on what you’re hearing from Sage customers and research respondents, what are the biggest barriers small businesses face when trying to use AI effectively in their day-to-day operations?
SME leaders are ambitious, but they face very real constraints. Fifty-eight per cent (58%) say affordability is the biggest barrier to digital transformation. Many small businesses simply can’t afford large, complex technology investments. Skills are another challenge; lean teams don’t have dedicated IT or data expertise, making implementation feel daunting. Our report found that 41% of medium-sized firms cite a lack of internal expertise as a barrier to scaling digital adoption.
There’s also a confidence and trust gap. Business owners want to know that AI tools are secure, reliable, and built for their specific needs—not generic solutions that add risk or complexity. Without clear guidance or proven use cases, many hesitate to move beyond pilots.
Finally, uncertainty around return on investment slows progress. SMEs need practical, near-term value, not long transformation roadmaps. That’s why domain-specific, embedded AI that is applied to everyday processes like accounting, payroll, or cash flow is so important. When AI solves real problems, adoption becomes much easier.
If you could offer Canadian SME owners one practical piece of advice about AI for the next 12–18 months, especially in an uncertain economy, what would you encourage them to focus on first: tools, skills, use cases, or something else?
I’d encourage SME owners to focus first on use cases, not tools. Start with one or two areas where AI can immediately reduce manual work or improve visibility, such as invoicing, cash flow forecasting, expense management, or compliance.
Small, practical wins matter. They build confidence, free up time, and create momentum without overextending teams or budgets. When business owners see quick, tangible benefits, it becomes much easier to scale adoption thoughtfully.
At the same time, investing in basic digital skills is critical so employees feel comfortable working alongside AI rather than intimidated by it. In an uncertain economy, resilience comes from doing more with less. If an AI use case doesn’t save time or improve decision-making in the near term, it’s probably not the right place to start. SMEs that take a focused, incremental approach now will be far better positioned for whatever comes next.
Sage has called for SME-first AI policies, including targeted skills investment, tax incentives, and a “whole-of-ecosystem” approach. From your perspective, what should Canadian policymakers and ecosystem partners do next to make AI more usable, affordable, and impactful for small and mid-sized businesses across the country?
The priority now is moving from ambition to execution. Canada has strong AI aspirations, but for small and mid-sized businesses, what matters most is whether policies actually make adoption easier, more affordable, and more practical.
That starts with putting SMEs at the centre of Canada’s AI strategy. Skills investment needs to be targeted and accessible, and incentives like tax credits or grants should be simpler to apply for and tied to real-world outcomes. Too often, support exists in theory but is difficult for small businesses to navigate in practice.
We also need stronger coordination across governments, industry, academia, and technology providers to deliver trusted, sector-specific support. SMEs don’t have compliance teams or innovation labs. They need solutions that fit how they operate and deliver value quickly. A true whole‑of‑ecosystem approach focused on accessibility, trust, and practical impact will be essential to closing Canada’s productivity gap and ensuring AI benefits businesses in every region and sector.
Disclaimer: The views and opinions expressed in this interview are those of the interviewee and do not necessarily reflect the official policy or position of CanadianSME Small Business Magazine. Our platform is dedicated to fostering dialogue and sharing insights that inspire and empower small and medium-sized businesses across Canada.
