AI for All: what employers need to know about Canada's national AI strategy

This bulletin is part of a series about AI for All. For more in the series, read our previous publication.

On June 4, the federal government released Canada's National Artificial Intelligence Strategy: AI for All, a six-pillar framework aimed at strengthening national sovereignty and accelerating the safe, responsible adoption of AI across the Canadian economy. The Strategy covers a broad range of issues, including infrastructure, privacy, and healthcare. This bulletin focuses on employment and workforce implications for employers and organizations procuring or deploying AI in workplace settings.

What you need to know

• The Strategy itself does not create new employment law obligations; however, it is a meaningful signal of where federal policy, funding programs, standards, and future legislation may develop.
• The Strategy frames AI adoption through a “pro-worker” lens, emphasizing that AI should “augment human expertise rather than displace it”.
• The Strategy prioritizes AI literacy and skills development, including commitments to free entry-level AI training and the scaling of employer-led training and upskilling initiatives.
• The Strategy identifies AI use in hiring as a risk area and signals future legislation and other measures focused on privacy, transparency, and algorithmic bias, which may affect workplace AI tools and use.

“Pro-worker” model of AI adoption

A central theme of the Strategy is that AI adoption should be “pro-worker”. The government emphasizes that AI technologies should be designed to enhance productivity and support workers in moving into higher‑value roles, rather than displacing the workforce. In this framing, AI is presented as a tool to reduce repetitive tasks, improve safety, and support better decision-making when adopted responsibly.

To support this theme, the Strategy references OECD survey data showing that, across seven countries including Canada, 80% of manufacturing and finance workers reported that AI improved their performance. The Strategy also cites survey findings that AI users were four times more likely to report gains in job satisfaction, physical and mental health, and fair management.

Workforce participation, training, and AI literacy

The Strategy places significant emphasis on active participation by both workers and employers in shaping how AI is deployed in workplaces. To that end, the Strategy:

• contemplates sector-specific workforce alliances bringing together employers, unions, post-secondary institutions, and Indigenous partners to identify skill gaps, coordinate talent pipelines, and align public-private investment with workforce transformation needs across key sectors;
• emphasizes the importance of practical AI training that reflects how AI is used in the workplace, and identifies employers as key partners in workforce development;
• indicates that the government will assess training and upskilling offerings for mid-career workers, with a view to scaling employer-led training initiatives across the country; and
• commits to accelerating AI literacy, including through free entry-level training and targeted efforts in sectors most exposed to early disruption from AI.

Taken together, these measures signal that employers will play a central role in delivering AI training and supporting workforce transition as adoption increases.

AI in hiring

The Strategy identifies hiring as one example of a consequential decision in which AI systems may be used, and warns that biases can become embedded in algorithms and cause harm to vulnerable communities. This reinforces the government’s focus on AI-driven decision-making in employment contexts as a priority risk area. To that end, the government has committed to updating laws and standards to protect vulnerable groups from algorithmic bias.

Attracting global AI talent

The government’s stated objective is to help create up to 250,000 new AI-relevant jobs by 2031. In that context, the Strategy highlights the need for key stakeholders, including employers, to support workers at every stage of their careers.

Recognizing the intensifying global competition for technical experts such as researchers and engineers, the government will expand the Global Talent Stream and modernize permanent residency pathways to aid the entry, onboarding, and retention of highly skilled AI workers. The government believes these measures complement the broader $1.7 billion talent attraction strategy announced in Budget 2025. While primarily an immigration and talent measure, this may be relevant for employers competing for AI-related skills in Canada.

Implications of the Strategy for employers

The Strategy is a policy document, not new employment legislation. Much of its workplace impact will depend on the legislation, standards, guidance, and program details that follow. For employers, the Strategy signals several areas where expectations and potential legal or practical obligations may develop, particularly as AI adoption increases.

The Strategy’s express reference to unions is relevant for unionized workplaces, primarily from a labour relations and implementation perspective. Employers with collective agreements should consider whether AI-driven changes to job duties, staffing, scheduling, performance management, or monitoring may engage existing consultation, notice, or bargaining obligations.

For organizations working with government (whether as vendors, service providers, or recipients of government funding), the Strategy may also have practical implications for how workplace AI practices are assessed. As the government accelerates the procurement and deployment of AI tools, organizations that interact with government may be expected, as a practical matter, to demonstrate that their AI practices align with the responsible use principles reflected in the Strategy, including transparency, accountability, human oversight, and safeguards for employee and applicant information.

Practical steps for employers to consider

Organizations that invest early in workforce AI literacy and align with the Strategy’s emphasis on augmentation, trust, and transparency may be better positioned as legislation and standards develop. Practical steps employers may wish to consider include:

• mapping current and proposed HR or workforce AI uses to assess privacy, transparency, bias, human oversight, and decision-making risks, particularly where tools screen, rank, filter, or evaluate applicants or employees;
• reviewing vendor contracts for AI powered recruitment, performance management, or other workplace-related platforms to address issues such as data use, retention, and processing, as well as audit and testing rights, transparency, and incident reporting;
• establishing or reviewing internal AI governance policies that document how AI is used in employment-related decisions, who is accountable for those uses, and when human review is required; and
• engaging employees on planned AI deployments through training and change management and, where applicable, through any consultation, notice, or bargaining processes required by collective agreements or workplace policies.