Generative AI for Minority Small and Medium-Sized Enterprises in Canada

Digital Policy Hub Working Paper

April 27, 2026

AI adoption among minority-led small and medium-sized enterprises (SMEs) is hindered by the size and resources available to these smaller businesses. Many end up with a “making do” approach, resulting in uneven AI adoption and often a lack of safeguards, capabilities or ecosystem supports required for productivity gains. That said, making do with what you have can spur creative usages of AI tools, enabling rapid, context-specific innovation when supported by targeted policies.

The question, then, is not how to support SMEs in adopting AI tools in a cookie-cutter approach, but rather how to empower SMEs to continue to innovate while ensuring their AI adoption isn’t risking their business’s security and longevity. Strengthening digital skills, improving access to reliable and rights-safe AI tools, expanding community-based support infrastructure, and reducing governance risks are essential to ensure that minority-led SMEs can adopt and adapt AI in ways that enhance competitiveness, resilience and inclusive growth.

About the Author

Mehrsa Ehsani is a Digital Policy Hub post-doctoral fellow specializing in entrepreneurship and innovation, with a Ph.D. from the Haskayne School of Business, University of Calgary.