By Eva Fydrych
"The time to innovate is NOW."
For years, the conversation around fashion, culture, and tourism has been wrongly bifurcated. On one side, it's seen as pure entertainment—the frivolous end of the economy. On the other, its immense economic and cultural weight is recognized, but its need for digital tools is underestimated. This is where the crucial work of education begins: to demonstrate that these industries are not just entertainment; they are powerful engines of identity, export, and employment. And like any modern engine, they require sophisticated digital fuel to run. The persistent challenge has been breaking through the comfort of the status quo, the allure of repeating proven-but-outdated models, to highlight that innovation is the key to unlocking their future potential.
This makes the data on Canada's digital adoption (¹) not just another report, but a stark validation of this need. It reveals a critical innovation gap that is actively undermining the competitiveness of Canadian small and medium-sized enterprises (SMEs), particularly in the vital experience-based sectors that define our culture and economy.
The Hard Data: A Nation Falling Behind
Recent analyses reveal a troubling snapshot of Canada's digital readiness. Canadian SMEs are not keeping up with their global counterparts when it comes to tech investment. A 2021 survey by the Business Development Bank of Canada found that only 5% of businesses were using digital technologies effectively at that time. Furthermore, that survey found only 60% of small businesses had a website, and only 34% were analyzing customer data.
A Pronounced AI Adoption Gap: The digital adoption gap is even more stark concerning AI. As KPMG reported in 2023, only 35% of Canadian businesses had implemented AI into their operations—compared to over 70% of businesses in the U.S. This already low figure plummets for small businesses; according to TheFutureEconomy.ca, only 5% of Canadian small businesses had implemented AI.
New data from a September 2025 Research Co. poll confirms that this hesitation is rooted in deep-seated public skepticism. The poll (²) found that half of Canadians (50%) now perceive AI as a threat, not an opportunity. This fear is widespread, with 79% of Canadians concerned about AI taking over human jobs and leading to less intelligent students, and 71% fearing it could cause an event leading to the loss of human life. Nearly half (49%) advocate for slowing down the pace of AI development altogether.
"Most businesses still do not plan to use artificial intelligence in the next 12 months."(³)
Photo: rawpixel.com
Commentary: Digitization is the New Stage for Fashion, Culture, and Tourism
For industries built on experience, identity, and culture—like fashion, tourism, and cultural events—this climate of hesitation is a critical threat. Innovation is no longer a back-office function; it is the very stage upon which relevance is built for a demanding modern consumer.
Today's consumer seeks an identity, a story, and a seamless experience. They discover new designers on TikTok, plan trips inspired by Instagram reels, and buy tickets for events that offer immersive digital interactions. Falling behind the digitization curve means becoming invisible in the very spaces where culture is now created and consumed.
A deeper, cultural barrier also stifles progress. There is a pervasive tendency within Canadian culture to avoid any form of criticism or constructive confrontation. A suggestion or opinion voiced publicly that is not pure praise—but instead points out weaknesses or suggests necessary change—is often mislabeled as rude and unsupportive. This creates an environment where insightful Instagram comments are deleted, and critical voices are silenced rather than engaged with. This aversion to honest feedback prevents the industry from developing in the right direction and eliminating its weaknesses. In the long term, building a highly curated, fake facade of glamour is far more damaging than embracing the constructive criticism needed to build a resilient and truly innovative sector.
A local designer using AR for virtual try-ons isn’t a gimmick; it’s removing a fundamental barrier to online shopping.
A retailer using data analytics to understand shifting trends isn’t just efficient; it’s speaking directly to the consumer’s desire for personalized curation.
Without these tools, a fashion SME isn't just losing a sale—it's failing to build the engaging, interactive ecosystem that defines a modern brand.
Digitization allows for hyper-targeted marketing to niche audiences, moving beyond generic advertising.
Offering virtual attendance or digital archives expands reach globally and creates new revenue streams, making culture more accessible.
Using data from ticket sales and engagement helps organizers understand their audience, tailor future programming, and build a sustained community—not just a one-time audience. Ignoring this is to treat culture as a transaction, not a living conversation.
A tourism business without a seamless booking system, mobile-friendly information, or immersive virtual previews is creating friction at every stage of the customer journey.
AI-driven personalization can curate unique itineraries, transforming a generic visit into a deeply personal discovery.
Failing to digitize means offering a fragmented experience. In a world where destinations compete globally, a poor digital presence translates directly into a perception of being outdated.
A Path Forward: From Awareness to Action
Acknowledging these deep-rooted challenges is the first step. The next, more critical step is to forge a new path forward. This requires a fundamental shift in mindset from all players in the Canadian ecosystem.
For Business Leaders & Entrepreneurs: The ask is to reframe risk. The greatest risk is not trying and failing, but being left behind entirely. Start small: adopt one new digital tool this quarter, dedicate a small budget to piloting an AI-driven customer service chatbot, or invest in data literacy training for your team. The goal is not perfection, but progress.
For Industry Associations & Educators: The role is to demystify and facilitate. Move beyond theoretical discussions and provide practical, hands-on workshops that showcase affordable, high-impact technologies. Develop case studies that highlight local successes, and create mentorship programs that connect digitally mature businesses with those just beginning their journey.
For the Cultural Community: The opportunity is to lead the change. We must champion a culture of constructive confrontation, where respectful, critical feedback is seen not as an attack, but as the most valuable form of support—a necessary tool for honing our craft and strengthening our industry. This means engaging with critical comments, hosting forums for honest dialogue, and valuing substance over facade.
This multi-pronged approach can break the cycle of hesitation. By moving forward together, the Canadian fashion, culture, and tourism sectors can stop building curated facades and start building a more innovative, resilient, and authentically engaging future.
Conclusion: The Time for Comfort is Over
The common demand across all these sectors is for a curated, personalized, and shareable experience. The digital tools highlighted are the essential instruments for delivering this.
The data now paints a complete picture: a cycle of hesitation where public skepticism and a cultural aversion to constructive criticism reinforce business inaction. The perceived risks of innovation are ultimately short-sighted. The real, existential risk for Canadian businesses is cultural and economic irrelevance. By not investing in digitization and by silencing critical voices, the industry silences itself in the digital town square, ceding the narrative of Canadian culture and experience to international competitors who are already mastering these tools.
The message can no longer be a polite suggestion. It is an urgent call to action. The comfort zone is the danger zone. The time to innovate is now.
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