Artificial intelligence is increasingly moving from experimentation to operational use among Canadian small business owners, including retailers and restaurateurs. New data released by payment and commerce technology company Square suggests that many entrepreneurs are already experimenting with AI tools, while technology platforms are beginning to embed AI capabilities directly into the software merchants use to run their businesses.
The findings highlight how AI tools are beginning to influence decision-making across multiple industries. For retailers and restaurants in particular, the technology is becoming accessible through platforms already used to manage payments, sales data, and day-to-day operations.
According to Square, a 2026 survey of Canadian business owners commissioned by the company found that 60 percent of respondents said they currently use artificial intelligence tools in their businesses. The same survey found that 74 percent reported being familiar with AI technologies that could support their operations. The research covers entrepreneurs across sectors, including but not limited to retail and hospitality.
While the survey results reflect broader small business adoption, they suggest that AI tools are becoming increasingly visible to Canadian merchants as platforms begin integrating these capabilities directly into their systems.
Commerce Platforms Begin Embedding AI
The trend is becoming particularly visible in commerce platforms that are embedding artificial intelligence into their existing software environments. In 2026, Square introduced Square AI, a natural-language AI assistant launched in Canada that is designed to help merchants access insights about their businesses using conversational prompts.
Square says merchants can ask questions such as which items sell best on weekends or how sales performance compares with previous periods. The system then generates responses based on transaction and operational data captured within the Square platform.
For many operators, particularly independent retailers and restaurant owners, extracting insights from sales data has traditionally involved reviewing dashboards or generating reports manually. AI tools integrated directly into commerce platforms are positioned as a way to simplify that process.
As these technologies become more widely available, platforms are increasingly presenting AI as a way that may help small businesses access analytical insights that were once more commonly associated with larger organizations.
Small Businesses Seek Efficiency and Insight
The appeal of AI tools among retailers and restaurant operators often centres on operational efficiency. Running a small business involves managing inventory, staffing, marketing, and customer demand. AI systems that can quickly surface relevant insights may help operators make faster decisions based on available data.
Square’s research suggests that entrepreneurs are particularly interested in AI tools that streamline tasks or provide operational insights. Survey respondents cited potential benefits such as marketing assistance, administrative efficiencies, and improved access to business insights.
Retailers, for example, may use AI tools to better understand purchasing patterns, identify seasonal trends, or evaluate which products perform best at different times of the week. Restaurants may apply similar insights to menu performance or staffing decisions.
The ability to ask software platforms direct questions about business data reflects a broader shift toward conversational interfaces. As AI tools evolve, merchants may increasingly interact with operational software through natural-language prompts rather than traditional reporting dashboards.
Retail Technology Firms Race to Integrate AI
Square’s launch of Square AI reflects a broader shift taking place across the retail technology sector. Companies that provide commerce platforms are increasingly incorporating artificial intelligence into their products as they compete to offer more advanced operational tools.
Canadian-founded platform Shopify has introduced several AI-driven tools for merchants, including Shopify Magic, which assists with content generation and product descriptions, and Sidekick, an AI assistant designed to help merchants navigate reporting, answer operational questions, and receive guidance on managing their businesses.
Similarly, Lightspeed Commerce has integrated AI-powered capabilities within its retail and hospitality platforms. These tools include features designed to support inventory management, demand forecasting, and data-driven insights for merchants operating stores and restaurants.
These developments suggest that AI functionality may increasingly become a standard component of retail platforms rather than a specialized add-on. As the technology becomes more integrated into widely used systems, retailers may rely more heavily on AI-generated insights to guide operational decisions.
AI Adoption Continues to Expand
While artificial intelligence adoption among large corporations has attracted significant attention in recent years, smaller businesses are gaining access to these technologies through the platforms they already use to manage payments and operations.
For many independent retailers and restaurateurs, AI tools are becoming available through familiar commerce systems rather than requiring separate software investments. This shift could lower barriers to experimentation with AI technologies among small business operators.
As commerce platforms continue to introduce AI-driven features, adoption among Canadian merchants may accelerate, particularly as these tools are integrated directly into everyday business workflows.
A New Layer of Intelligence for Retail Operations
The growing integration of artificial intelligence into commerce platforms reflects a broader shift in how businesses interact with operational data. Instead of manually reviewing reports or spreadsheets, merchants may increasingly rely on AI assistants that interpret sales information and provide insights through conversational prompts.
For retailers and restaurant operators navigating competitive markets, these tools are positioned as a new layer of operational intelligence. As AI capabilities continue to evolve, they could influence how merchants evaluate performance, plan inventory, and respond to changes in customer demand.
While the long-term impact of these technologies is still unfolding, the rapid pace of development suggests that AI tools embedded within commerce platforms are likely to play an expanding role in the next generation of retail technology.
