Canadian Small Businesses Prioritize Cash Flow Over AI Adoption, Zensurance Index Reveals

While artificial intelligence dominates the headlines and boardroom discussions, most Canadian small business owners say it has not meaningfully changed the way they operate. New findings from the 2026 Zensurance Small Business Confidence Index show that the frontier technology remains largely in the background for the majority of small businesses.

The results come from Zensurance’s national survey of 1,000 Canadian small business owners, entrepreneurs and self-employed professionals, examining how businesses are responding to the rapid rise of AI. Earlier index findings showed a decline in small business confidence for three consecutive years, with just under half of owners (49 per cent) saying they remain confident about the months ahead.

For many Canadian small businesses, the AI conversation taking place across industries has yet to translate into meaningful business value. Owners are still determining where, and whether, AI fits into their operations. Nearly one-third of respondents (32 per cent) say AI has had little to no impact on their business, and another 27 per cent say they are not sure how it even applies to what they do.

Among those who have felt an impact, results are mixed. Only one-in-four report a positive effect, and just nine per cent credit AI with meaningful productivity gains or cost savings. Meanwhile, seven per cent say it has hurt their revenue or client base. Among those who have concerns about AI, their top worry is competitive pressure: 13 per cent say AI will make their products or services less competitive, 10 per cent say AI tools are not reliable or accurate enough to trust, and nine per cent worry about job displacement and the loss of human labor.

Owners remain focused on practical priorities. More plan to introduce new products or services (26 per cent), expand into new markets (22 per cent), or invest in new tools or equipment (20 per cent) than learn about or invest in AI (15 per cent). When given a hypothetical $10,000 business grant, the response was telling: 26 per cent would set it aside for cash flow, 20 per cent would pay down debt, 17 per cent would invest in tools or equipment and just seven percent said they would put it toward AI.

The findings suggest that Canadian small business owners are not turning away from innovation – they are balancing new opportunities with the immediate realities of running a business. For many entrepreneurs, the fundamentals come first. While business owners prioritize immediate stability, such as preserving cash flow and reducing debt, the broader findings suggest a critical gap; many remain exposed to risk that could erode those very foundations. For these businesses, insurance provides a proactive layer of protection that ensures that the financial stability they are fighting for remains secure against unexpected setbacks.

“Small business owners are constantly weighing where to invest their limited time and resources,” said Danish Yusuf, CEO and Founder of Zensurance. “This year’s findings show they are prioritizing stability, operational strength and resilience. Whether that means adopting new technology, improving efficiency or protecting against unexpected setbacks, a proactive approach is what helps businesses stay strong as conditions keep changing.”

Founded in 2016, Zensurance is Canada’s leading source for small-business insurance. Zensurance empowers small-business owners, entrepreneurs, independent contractors and self-employed professionals across hundreds of industries to shop and get the specialized coverage they need in just a few minutes.