Over the past couple of years there has been an explosion of generative artificial intelligence (AI) use in the workplace. AI can be used in a multitude of different ways in the workplace, including automating routine tasks, screening data sets, creating training content and screening job applications, to name a few. AI use can come with risks and employers should take proactive measures to minimize these risks in their organization.
Regulating AI in the workplace
Canada is in the early phases of regulating AI use. Previously, the Government of Canada introduced Bill C-27, which included legislation titled the “Artificial Intelligence and Data Act.” Bill C-27 was drafted to ensure the development of AI systems was done safely and responsibly, mainly through a risk-based approach to address potential harms associated with AI use. However, Bill C-27 did not advance and died on the table. It will not be coming into force.
The majority of provinces and territories in Canada do not have legislation governing AI use – with a few exceptions.
In Ontario, on January 1, 2026, changes were made to the Employment Standards Act that introduced new rules concerning publicly advertised job postings. Ontario employers with more than 25 employees are now required to disclose in the posting statement if they use AI during the hiring process to screen, assess or select applicants for a position.
In Quebec, an Act respecting the protection of personal information in the private sector stipulates that if a person relies exclusively on an automated processing of personal information to render a decision, they must inform the person concerned no later than when they convey the decision. They must also inform the person whose information is subject to the processing, when requested by that person.
On December 3, 2025, Accessibility Standards Canada announced the publication of Canada’s first National Standard focusing specifically on accessible AI, titled CAN-ASC-6.2 – Accessible and Equitable Artificial Intelligence Systems (AI Standard). The AI Standard focuses on ensuring AI use is equitable and accessible for people with disabilities. The AI Standard is currently voluntary for employers to implement. It will remain voluntary unless it becomes mandated by regulation.
What employers need to know
Although it may seem that legislation regulating AI technology is a new area of the law with little regulation, there are existing legal frameworks employers must still be cognizant of, including human rights and privacy obligations.
Human rights considerations
Many forms of AI recycle outputs based on pre-existing data in their systems. Therefore, some programs can produce outputs that are inaccurate or discriminatory. Liability can ensue and workplaces may be held responsible. An example of this would be in the context of hiring. A screening program may inadvertently, and improperly, screen out a group of applicants from a role due to a protected ground under human rights legislation. This would be considered a discriminatory practice.
Privacy considerations
There are also intellectual property and privacy concerns regarding AI use in the workplace. When inputting information into AI programs, employers should be cautious about potentially losing their intellectual property, as the terms and conditions of the program may attempt to grant rights to the owner of the AI. This is an ongoing legal issue, as discussed in one of our earlier insights.
Employers should also be cautious when inputting employee personal or sensitive information into an AI system, as information entered into an AI system may not stay private, which presents risks of privacy violations and security risks.
How employers can mitigate risk
Employers must take steps to ensure that employees are aware of the risks of improper AI use and attempt to mitigate any improper use of AI in the workplace.
An AI Use Policy is a proactive measure to minimize risk and communicate to employees the organization’s expectation pertaining to AI use. Important provisions to include in an AI Policy include:
- the requirement that employees disclose and receive pre-approval for AI use in the workplace,
- a clear outline of what the organization considers acceptable AI use, and
- consequences for improper AI use.
If you are interested in learning more about AI and mitigating risks within your organization, the labour & employment team at MLT Aikins has a wide range of experience assisting various organizations in this area. We can support you in complying with legal frameworks and establishing AI policies for your organization.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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