AI is setting rules for Canadian companies

IDC reports Canadian IT spending is set to grow in 2026 even as firms expect tougher economic conditions, with AI, cybersecurity, data, and cloud least likely to face cuts.

Canadian organizations are entering 2026 expecting a tougher economy and continued hiring constraints, yet IT budgets are increasing. IDC forecasts IT spending in Canada will grow faster than GDP, with investment concentrated in AI, cybersecurity, data, and cloud infrastructure. AI has moved beyond pilot projects into routine operational use, including generative and agent-based systems. As systems become embedded in daily operations, leaders and boards are asking questions about responsibility, oversight, and reliability. What we know: - IDC expects Canadian IT spending to grow roughly five times faster than GDP in 2026. - AI, cybersecurity, data, and cloud infrastructure are the areas least likely to face cuts. - Many organizations are using generative AI and agent-based systems as part of core operations. - Boards and executives are increasing scrutiny on where AI sits in the business and who is accountable for outcomes. Summary: Leaders are prioritizing technology that underpins everyday operations and shielding core systems while longer-term projects are more likely to be delayed or scaled back. Undetermined at this time.