At a time when artificial intelligence, automation, and soon quantum computing are reshaping business models, should organizations hit the accelerator or take a step back to determine their priorities regarding digital transformation?
This question was at the heart of the latest Rendez-vous ED hosted by the Executive Education HEC Montréal in collaboration with Talsom on May 19. Three complementary perspectives were presented: that of a tech startup with Malik Yacoubi, co-founder and CEO of nesto; that of Québec SMEs with François Gingras, Vice President of Innovation at Investissement Québec; and that of venture capital with Geneviève Tanguay, partner at Panache Ventures and former CEO of Anges Québec.
One thing is certain: technological progress is accelerating at an unprecedented pace, as noted at the outset by Camille Grange, Associate Professor in the Department of Information Technologies and Director of Sustainable Transition at HEC Montréal. As a result, the emergence of new innovative players is changing the rules of the game and disrupting competitive dynamics. “These disruptions challenge existing companies and push them to transform.”
The pace of technology adoption has also surged. “ChatGPT reached one million users in five days, whereas Facebook took 10 months to get there,” the professor noted. In this context, some wonder whether it is better to take a step back before diving headfirst into this race. The answer is nuanced.
Moving forward, yes—but at your own pace
Founded in 2018, nesto set out to transform the mortgage experience end-to-end, recalled Malik Yacoubi. However, the company realized it could also be overtaken by advancements in this field. “We made ourselves a promise: if a mortgage company were to make artificial intelligence the core of its model, it would be us.” A challenge, especially since nesto now has 1,200 employees following an acquisition, and not all employees have the same level of technological expertise.
The pace of adoption is not the same among Québec SMEs, observes François Gingras. Investissement Québec supports between 800 and 900 companies each year in innovation projects, and in most cases, acceleration is not the priority. “You have to start with the basics by aligning these transformations with the strategic plan and achieving operational excellence so as not to automate the wrong things.” The key challenge is therefore to foster a culture that supports the integration of technologies.
Geneviève Tanguay, for her part, points out that Canada lags in AI adoption. According to PwC’s latest global CEO survey, 29% of Canadian executives say they are deploying AI at scale in their organizations, compared with 43% globally. “So, the question of acceleration is pressing, because the transformation is happening now.” And changes could happen even faster with quantum computing.
Beyond the speed of adoption, governance and ethics must also be considered, she adds, drawing on her role as a board member of companies such as VIA Rail. Especially since the use of AI in organizations often goes under the radar—hence the importance of better regulating its use and clearly defining limits and responsibilities. Québec does, however, have a major advantage, with world-class institutions such as Mila (the Québec Artificial Intelligence Institute) and leading researchers like Yoshua Bengio.
Strategy above all
For Malik Yacoubi, companies seeking to integrate AI have two main paths. The first is to adopt existing tools to boost productivity, as nesto has done in its call centers. The second is to focus efforts on their “right to win”—a competitive advantage that justifies major investment—and to pursue it with urgency. Following this approach, nesto created a team entirely dedicated to developing a mortgage analysis tool, which he estimates could increase productivity in this activity by 50 to 100 times.
François Gingras also emphasizes the importance of being strategic. “The most problematic cases are companies that have overinvested in technology without asking the right questions, treating it as an end and spreading themselves too thin. Getting them back on track afterward is very difficult.”
Taking action remains essential, however, insists Geneviève Tanguay. Like a muscle, digital transformation develops through practice, she explains. Moreover, in an environment where new technologies emerge almost every two weeks, it sometimes takes courage to let go. “In your organizational, leadership, and governance roles, you need to encourage failure.”
This is particularly true since the most promising innovations do not always reach consensus—a principle that guides decision-making in venture capital. In this context, learning to make decisions even in gray areas is crucial. She also recommends rethinking team composition: “Step outsite traditional frameworks. Revisit your organizational charts by integrating completely different profiles to achieve results that will also be completely different.”
A much broader effort than technology alone
To innovate, one must be intense, focused, and strategic, the speakers summarized. And if you are convinced, do not hesitate to bring this issue back onto the agenda regularly, advises Geneviève Tanguay. “As a leader, the idea is not to demand, but to influence.”
“This discussion reminds us that digital transformation is much more than a technological project—it also involves leadership, governance, and ethics,” concluded Jean-Marc Gauthier, Director of Special Projects at Executive Education HEC Montréal. It was an evening rich in exceptionally valuable exchanges, also noted Olivier Laquinte, President and Founder of Talsom.
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