A new national study reveals that Canadians have little faith in artificial intelligence technologies, particularly AI-powered search tools. The survey, conducted by Toronto-based digital marketing firm dNOVO, asked more than 2,000 Canadians to rate their trust in a wide range of industries, companies, and technologies. AI search tools came in last, with a trust rating of just 1.91 out of 5, behind even lawmakers at 2.08.
At the opposite end of the spectrum, healthcare providers ranked as the most trusted industry, earning an average score of 3.77 out of 5. Traditional service sectors such as plumbing and HVAC followed with 3.08, while tech companies (2.38), financial services (2.44), insurance (2.35), and government services (2.34) all fell into what researchers described as a “low-trust zone.”
According to the study, this growing skepticism toward digital tools signals a pivotal moment for businesses that depend on AI-driven discovery or recommendation. As AI becomes more visible in consumer search and marketing, Canadians appear increasingly wary of its influence and transparency.
“If it’s free, you’re the product”
Ben Treanor, founder and managing director of Break of Dawn, which collaborates with dNOVO on research and communications initiatives, says the low scores reflect genuine unease around data privacy and manipulation.
“People are much more careful about data collection and what’s actually being recorded,” said Treanor. “If something’s free, you’re the product. That’s something that younger people should be a little more aware of.”
He noted that many Canadians remain unsure what happens to personal data shared through AI chat and search tools. “People are freely putting in their medical data or their legal problems — very sensitive information that you probably wouldn’t tell your next-door neighbor — but you’re happy to tell it to a company like OpenAI,” Treanor explained. “There may be some pushback on that eventually.”
Word-of-mouth remains most trusted
The study also examined what Canadians rely on when deciding which companies to trust. Despite the surge in digital information sources, recommendations from friends and family still rank highest, scoring 4.31 out of 5.
Online communities such as Reddit perform well with a score of 3.85, followed by Google Reviews at 3.25. Yet AI-generated recommendations landed last at 1.92, reinforcing the perception that Canadians place little confidence in machine-generated advice.
Treanor said the results confirm what many marketers already sense. “People very much like to read experiential testimony from other people in niche communities, but word of mouth still beats that,” he said. “It’s interesting that the oldest of all these methods remains the most trusted.”
What breaks consumer trust
The dNOVO survey asked Canadians which actions most often cause them to lose trust in a business. Dishonesty or sharing misleading information was the top reason, cited by 26 percent of respondents. That was followed by poor product or service quality (21 percent), negative or discriminatory behavior by a company or its employees (13 percent), privacy violations (12 percent), and poor customer service (9 percent).
For retailers and service providers, the message is straightforward. Canadians value honesty and quality above all else. Once a business is perceived as deceptive, it becomes very difficult to win consumers back, even if prices are competitive or products are popular.
Retailers should tread carefully with AI integration
As artificial intelligence becomes more visible in search, shopping, and personalization, Treanor cautions that retailers should focus on clarity and consent. “We’re predicting a shift from review websites with affiliate links to those same monetized recommendations showing up directly in AI,” he said. “If that isn’t fully apparent to consumers, I think people will really come to distrust it.”
He explained that this evolution could funnel more revenue back to major AI platforms at the expense of independent websites, blogs, and news outlets. “A lot of bloggers have been making their living this way,” Treanor said. “But in the last Google update, many saw their traffic drop by 90 percent overnight. The line between what is news and what is an advertisement is getting more blurred every day.”
A cautious Canadian consumer
For Canadian retailers and brands, the findings underscore the need for transparency, consistency, and human connection. While AI tools can improve efficiency behind the scenes, such as inventory management or fraud detection, Canadians remain skeptical of AI as a trusted advisor or recommender.
Retailers that use AI in marketing or customer engagement should clearly explain how data is collected and ensure that any automated communication feels personal and ethical. The survey also suggests that authentic, in-person experiences and peer recommendations carry far more weight than algorithmic suggestions.
“Older Canadians aren’t rejecting AI outright,” said Treanor. “They’re withholding judgment until it proves itself reliable.”
Building trust in an AI-driven marketplace
The dNOVO survey provides a roadmap for how companies can maintain credibility in an increasingly automated economy. That begins with earning, and keeping, consumer trust through transparency, integrity, and service quality.
Canadians are pragmatic. They may use AI-powered tools daily, but they are not yet ready to hand over decision-making to machines. Businesses that communicate openly about how technology supports, rather than replaces, human judgment will stand out.
The lesson is simple but timely: trust must be earned the human way, even in an age of AI.
