The Canadian Federation of Independent Business (CFIB) has released a report showing that while 92% of small businesses, including farms, are using digital tools, only 10% have fully integrated them into their operations. This limited adoption leaves untapped opportunities for productivity and growth.
More than half of businesses (55%) saw returns on their technology investments within two years, reporting an average 29% productivity increase in the first year. For every $1 invested, they earned $1.60. Farms and businesses identified as Digital Leaders gained even higher returns of $2.40 per $1 invested.
Does AI really apply to the everyday life of a small farmer? May livestock farmers – sheep, goats, etc. - are already using AI for animal tracking, optimizing feeding schedules and preparing nutrition plans.
If you are a farm gate farmer – AI can help with social media and marketing. We are not talking about losing your “human” side or your authenticity, but just using tools to help you get your work done.
“Digital transformation isn’t just a buzzword—it’s becoming a key differentiator in small business success,” said Marvin Cruz, CFIB’s director of research and report co-author. “While not a panacea, digital tools can help inspire content, speed up projects, and automate repetitive tasks, freeing up time to take on more clients or focus on other important work such as strategy or personalized marketing.”
Recent investments by farms and SMEs have focused on accounting, IT, and cybersecurity, but interest in artificial intelligence is rising quickly. Nearly one in four small businesses have adopted generative AI tools, and one-quarter plan to do so in the next three years. AI analytics adoption is also expected to more than double.
“While there’s growing interest in adopting AI and overall technology, small firms are still early in the journey,” said Alchad Alegbeh, Research Analyst at CFIB. “Helping SMEs go from early adoption to deeper integration is the next frontier and a big opportunity for Canada’s economy.”
Also, connectivity can be an issue. If so, read the article: Can you access the broadband service you need on your small farm.
To address this, CFIB urges policymakers to raise awareness of government support programs, introduce tax credits and immediate expensing for digital tools, provide payroll tax relief, and create clear resources to help small businesses and farms integrate technology more effectively.