BMO says Canadian companies will use AI to plan for climate change strategies

AI For Business


TORONTO — There is growing confidence among Canadian business leaders to take action to reduce climate change risks, a new report finds.

According to the BMO Climate Institute’s latest Business Leaders Survey, 78% of leaders surveyed said their companies have already developed or are in the process of developing a climate change plan, up from two-thirds of organizations last year.

More than 90% of respondents (slightly up from 2025) expressed confidence that these strategies are improving business outcomes, especially now that extreme and unpredictable weather has become a major climate-related concern for businesses.

This year’s survey was conducted in January 2026 among 370 Canadian business leaders, most of whom were from mid-sized and large commercial companies.

“At BMO, we value this type of research because it provides a clear, data-driven view of how business leaders are responding to climate realities,” Melissa Fifield, director of the BMO Climate Institute, said in a news release.

“Tracking these changes annually allows us to better support our clients as expectations and risks continue to evolve.”

In Canada, 41% of business owners say their companies incorporate environmental considerations into financial decision-making, up from 22% in 2023.

However, 38% cite cost as the biggest barrier to advancing sustainability and resilience goals. This research suggests that sensitivity to carbon pricing and the cost of low- and zero-carbon products and services remains.

The survey found that 68% of respondents believe carbon pricing is affecting their business now or in the near future, and 67% said they are affected by the cost of low- and zero-carbon products and services.

BMO said this year’s survey asked respondents for the first time how they use artificial intelligence to plan for climate change.

Approximately 57% of Canadian organizations were using AI in their day-to-day operations, and 55% had deployed those tools specifically for climate change planning.

Nearly two-thirds expect investment in AI to increase over the next year.

This report by The Canadian Press was first published May 19, 2026.

Sammy Hughes, Canadian Press



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