Report looks at ethical management, compliance with AI — along with challenges around hiring, retention
While the integration of artificial intelligence (AI) into the workplace is accelerating, Canadian employers are well aware that technology must not come at the expense of the human element, according to a recent report.
Overall, 80% of Canadian business leaders agree that “keeping a human in the loop is important when using AI,” reports ADP.
And 64% say “cultivating a sense of trust is important when using AI”.
Businesses are prioritizing both their people and their processes during a transformative era of work, says Jim Lord, president, ADP Canada.
"Canadian organizations face unique workforce challenges as they navigate both technological transformation and evolving employee expectations," he says. "From managing new legislative and regulatory AI disclosure requirements, to the need for increased skills development, employers are at a pivotal moment as they balance increased innovation with human-centered practices."
Ethics, compliance in using AI
Meanwhile, nearly half (46%) of Canadian businesses agree that ethical management of AI is a priority, but only 22% have an AI ethics policy in place.
When it comes to compliance, Canadian organisations are taking a cautious approach. Only 21% currently use AI for compliance tasks, and among those, just over half (51%) have strong trust in its accuracy. For those not yet using AI in compliance, only 10% have plans to do so. The top compliance challenges identified include data privacy, paid leave, payroll tax requirements, pay transparency, and overtime requirements.
While 75% of large companies and 61% of mid-sized companies view AI as essential for competitiveness, only 13% and 5% respectively are prioritising hiring for AI skills.
“As we continue down the path to greater AI adoption, our clients and our workforce must be at the heart of our efforts to use these technologies,” Stephen Burt, chief data officer of the federal government, previously said via LinkedIn. “We need to prioritize AI deployments that build trust and enhance services to Canadians and other clients, while also ensuring that they address the every day challenges faced by our employees.
“We need to equip our workforce and leadership with the skills and tools to deliver the best possible outcomes for Canadians.”
While the majority of employees are eager to adopt agentic AI in their roles, workers are feeling anxiety around the use of the technology, according to an Ernst & Young (EY) report.
Skills gap, talent management
When asked what skills Canadian businesses are prioritizing in new hires, strong work ethic, detail orientation, time management, problem solving, and ability to work on a team topped the list, according to the ADP survey.
However, employers said these skills were also the most difficult to find among new hires: strong work ethic, detail-orientation, time-management, leadership skills, and critical thinking, according to the report.
While employee experience has become a retention imperative, Canadian employers are struggling to optimize HR. Less than half of employers rate their onboarding and hiring processes as highly efficient (46%, and 43%, respectively), while more than half lack confidence in capturing valuable employee feedback and accessing data to understand employee sentiment.
“As organizations compete for talent in a tight labour market, these foundational gaps matter,” says ADP.
“Revenge quitting” is now a growing problem for employers, according to a recent report.
