The past few years have seen an explosion in the use of generative artificial intelligence (AI) in the workplace. AI can be used in a variety of ways in the workplace, including automating daily tasks, screening datasets, creating training content, and screening job applications. The use of AI can come with risks, and employers should take proactive steps to minimize these risks within their organizations.
Regulation of AI in the workplace
Canada is in the early stages of regulating the use of AI. Previously, the Government of Canada introduced Bill C-27, which includes a bill titled the “Artificial Intelligence and Data Act.” Bill C-27 was drafted to ensure that the development of AI systems is conducted safely and responsibly, primarily through a risk-based approach to addressing potential harms associated with the use of AI. However, Bill C-27 did not advance and died on the table. It will not take effect.
Most provinces and territories in Canada do not have legislation governing the use of AI, with some exceptions.
In Ontario, on January 1, 2026, Employment Standards Act We have introduced new rules regarding advertised jobs. Ontario employers with 25 or more employees are now required to disclose in their posting statements whether they are using AI to screen, evaluate, and select applicants for positions during the hiring process.
In Quebec, Law on the protection of personal information in the private sector provides that if you rely solely on automated processing of personal data to make a decision, you must notify the person concerned at the latest at the time of communicating your decision. We must also notify individuals, upon their request, that their information is subject to processing.
On December 3, 2025, Accessibility Standards Canada announced the publication of Canada’s first national standard specifically focused on accessible AI: CAN-ASC-6.2 – Accessible and Equitable Artificial Intelligence Systems (AI Standard). AI standards focus on ensuring that the use of AI is fair and accessible to people with disabilities. AI standards are now voluntary for employers to implement. It remains optional unless mandated by regulation.
What employers need to know
Although the law regulating AI technology may seem like a new area of law with little regulation, there are still existing legal frameworks that employers should be aware of, such as human rights and privacy obligations.
Consideration for human rights
Many forms of AI recycle output based on existing data in the system. Therefore, some programs may produce inaccurate or discriminatory output. Liability may arise and your workplace may be held responsible. An example of this is a recruitment situation. Selection programs can inadvertently and inappropriately screen groups of applicants from positions on grounds protected under human rights law. This is considered a discriminatory act.
Privacy considerations
There are also intellectual property and privacy concerns regarding the use of AI in the workplace. When inputting information into an AI program, employers should be aware of the potential loss of intellectual property, as the program’s terms and conditions may confer rights on the owner of the AI. As I explained in one of my previous insights, this is an ongoing legal issue.
Employers should also be careful when inputting employee personal or sensitive information into AI systems, as the information entered into AI systems may remain private, risking privacy breaches and security risks.
How employers can reduce risk
Employers should take steps to make employees aware of the risks of inappropriate use of AI and to seek to reduce inappropriate use of AI in the workplace.
An AI usage policy is a proactive measure to minimize risk and communicate your organization’s expectations regarding the use of AI to your employees. Important provisions to include in your AI policy include:
- Require employees to disclose and receive prior approval for AI use in the workplace
- A clear outline of what the organization considers acceptable use of AI;
- Impact of improper use of AI.
If you are interested in learning more about AI and mitigating risk within your organization, the Labor and Employment team at MLT Aikins have extensive experience supporting a variety of organizations in this area. We help you comply with legal frameworks and establish your organization’s AI policy.
Note: This article is general in nature and does not exhaust all possible legal rights or remedies. Additionally, because the law may change over time, these materials are not intended to be relied upon or construed as legal advice or opinion and should only be construed in the context of your particular situation. Readers should consult a legal professional for specific advice in their particular situation.
