How Smaller Companies Can Hold Their Ground in an Uncertain Geopolitical Climate
The current geopolitical situation worries me, particularly for smaller Canadian companies.
With the recent announcements of tariff increases on exports to the United States, our businesses face an economic storm. Those tariffs directly threaten exporters’ margins, raising costs and making their products less competitive in the American market. For companies already working with limited resources, it’s a double burden: absorbing cost swings while holding their position against international competitors.
The instability isn’t limited to tariffs. Uncertainty around global trade relationships, economic tension and unpredictable political decisions adds further pressure. It forces smaller companies to rethink their strategies and adopt more resilient approaches.
Despite that context, one fact reassures me: a KPMG survey shows that 75% of Quebec organizations already use generative AI in some form. That’s the highest rate in Canada. It points to a strong appetite for innovation, and a real capacity to adopt advanced technology to get through current challenges.
Why AI matters for smaller companies
Smaller companies, by virtue of their agility, are better placed to take advantage of AI. But they also face particular constraints: limited resources, fierce competition.
By automating processes, improving supply chains and providing predictive analytics, AI makes it possible to reduce costs, optimize operations and make better-informed decisions. The most immediate uses:
- Automating repetitive tasks
- Improving customer relationships
- Optimizing marketing and sales
- Smarter logistics
Montreal, an ecosystem worth using
Montreal has established itself as a global leader in artificial intelligence. With institutions like Mila and an exceptional concentration of startups, the city offers an environment built for innovation.
In Europe, close to 70% of smaller companies consider that AI improves their efficiency and competitiveness, with internal efficiency gains of 20 to 30%. We have a solid ecosystem here to support our companies and go beyond those results.
A considered strategy for a durable return
Adopting AI shouldn’t be seen as a short-term miracle fix. It’s one more tool in a toolbox that enables competitiveness.
A positive return demands careful preparation and solid foundations:
- Quality data
- Digital transformation across the business
- A long-term view
An opportunity in the face of instability
The tariff threat is real, and it pushes companies to reinvent themselves. By improving internal efficiency and reducing costs, AI can let Canadian businesses offset those increases while staying competitive internationally.
European companies have come through similar challenges with automated processes and better resource management. There’s inspiration worth taking there.
Conclusion
AI gives smaller Canadian companies the tools to innovate, stay competitive, and navigate an increasingly unpredictable world.
In Montreal, we have what it takes: world-class talent, a dynamic ecosystem, and a culture of innovation. With AI, these companies can transform their operations, strengthen their resilience, and face what’s coming with confidence.