In his 2024 paper, “What is your company’s AI readiness quotient?”, Wharton Business School senior fellow, Scott Snyder shares that “80% of executives expect AI to significantly impact their businesses, but less than 50% believe they have the right capabilities in place to fully harness the benefits of AI in their organizations.”
The potential of AI and its impact on Canadian businesses is substantial. ADP Canada is committed to exploring its implications for businesses in Canada.
ADP Canada’s "Reimagining Work in the Age of Generative AI" webinar features a panel of Canadian leaders at ADP who outline the potential of human resources and AI working together to enhance processes in the professional world and discuss the potential implications.
There are different types of AI
In today’s AI evolution, there are three different types of AI:
- Predictive AI: Focuses on detecting patterns, making predictions, assigning labels or classifying data.
- Generative AI: Supports the creation of “new” content (text, images, audio, computer code, etc.) based on data in a training set.
- Artificial General Intelligence: An AI that could learn to accomplish any intellectual task that human beings or animals can perform. We are not here yet, but it is anticipated that current AI models could get us there in the future.
AI and the world of work: Predictive AI and Generative AI
AI is becoming more prevalent in our daily work. Predictive AI, for instance, utilizes machine learning to predict the best word when typing an email, suggest words to make an email subject more appealing, and improve open rates. Predictive AI is also valuable in turnover forecasting, recruitment processes, administrative tasks, and chatbots.
Generative AI can be used to create job requisitions, determine employee benefits and compensation, summarize documents or calls, and even generate content. It's important to remember that the human element is essential in the world of AI at work. The goal of incorporating AI should be to enhance productivity rather than replace human input entirely.
Iman Masud, HR Executive Consultant, ADP Canada, highlights findings from Boston Consulting Group, which recommended that organizations look at the 10-20-70 when implementing AI. BCG proposes that organizations recognize that 10 percent of effort goes into algorithms, 20 percent of effort goes into technology, and most importantly, 70 percent of the effort goes into people and processes.
"We're currently on the cusp of our sixth wave of innovation, according to the theory of innovation cycles developed by economist Joseph Schumpeter," says Masud. "As we continue to revolutionize, we're quickly moving towards a sixth wave where AI will be commonplace, and the focus will shift to the human experience and human-centered solutions."
AI ethics and compliance considerations
Masud explains that as AI evolves, it is important to identify how it can benefit the organization and the daily activities of employees. It is equally important to develop guidelines that help ensure interactions with generative AI tools are done within a secure framework with robust privacy guardrails in place. Ethics, or lack thereof, are a major consideration with AI. There are some approaches organizations can apply. Some examples are:
- Monitoring data input:
Any algorithm is at risk of learning erroneous patterns, so it is important to help ensure that AI is using high-quality source data to better produce high-quality results.
Using recruitment as an example, a concern could be that the algorithm would prioritize certain candidates over others because they fit source data of previous hiring patterns, not because they are the most qualified.
Having employees monitor the information being picked up by the algorithm can help ensure it does not pick up biases. ADP uses this strategy to help monitor that AI tools are applying high-quality data sources and information. - Audit the system:
Monthly audits can help to spot AI errors quickly, which may help organizations take the necessary actions to ensure that the most qualified candidates are being identified from the talent pool.
AI may be seen as an advisor, but ultimately, the human should make the final decision. Hence, it may be important to have clear policies and procedures in place that focus on control with a person and not with AI.
Ethics are also essential to AI implementation plans, as they reflect an organization’s commitment to ethical business practices and help facilitate regulatory compliance.
Having an AI policy to ensure that strong guardrails are in place and that AI tools are compliant would help promote their safe usage and implementation in the workplace.
AI legislation in Canada
Canada’s proposed Artificial Intelligence and Data Act (AIDA) was introduced in 2022 by the federal government. Its aim was to regulate trade in AI systems and protect against potential harms by controlling the use of AI.
AIDA is currently being considered for legislative changes. To be passed into law, it still needs to pass through the third reading in the House of Commons.
In the meantime, Innovation, Science and Economic Development Canada (ISED) has worked with stakeholders to develop the voluntary code of conduct on the responsibility and development of advanced AI systems that many industry insiders have signed onto since late 2023.
“While all of this is coming down the pipe, it’s crucial for employers that, while we don’t have legislation yet, the use of AI is still subject to Canadian laws,” says Natalka Haras, Senior Legal Counsel at ADP Canada.
- Privacy legislation provides guardrails around how businesses use personal information.
- Human rights laws that pertain to personal characteristics such as gender, age, sex, disability, and ethnic origin - similar to antidiscrimination laws in the U.S.
- Intellectual property laws that pertain to trade secrets and copyrights.
“There will be AI implications. You don’t want your employees putting trade secrets into an unauthorized AI tool”, said Haras. “The key takeaway is that employers really need to think through AI use cases and work with their leadership, legal counsel, and compliance team to ensure lawful and responsible use of AI.”
Introducing AI to the workplace
According to Masud, introducing AI to a workplace “should start with small steps, linked to a bigger vision.”
- Pilot. To keep people at the center, a pilot project tied to the near-term and long-term outcomes can be designed. Diverse perspectives will help identify the AI tools' real impact. Effective mechanisms for monitoring feedback may also be beneficial.
- Build a community of interest where employees at all company levels and across different functions feel comfortable talking about the company's AI strategic vision and their concerns and expectations. You may even focus on recruiting employees who have an interest in AI, as this would promote AI engagement.
- Communicate effectively. “The successful integration of AI Technology within the organization’s processes will require developing a strategic communications plan where excitement is built, but expectations are realistic,” said Masud.
- Educate. As Helena Almeida, vice-president managing counsel at ADP says, “Educating employees about the use of AI and establishing clear guidelines for using AI-generated content is key to ensuring that this technology is used as intended and that confidential company information is not put at risk.”
