Over half of Canadian employees believe that using AI technology when making HR decisions is ‘ethically and morally wrong’
    Over half of Canadian employees believe that using AI technology when making HR decisions is ‘ethically and morally wrong’
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    Over half of Canadian employees believe that using AI technology when making HR decisions is ‘ethically and morally wrong’

    24 July 2023

    CANADA, July 2023 - An uptick in the use of artificial intelligence across small businesses to optimize workflows and boost productivity has led to some skepticism amongst employees. In order to understand the role that AI is playing in human resources - particularly when making layoff decisions - Capterra surveyed over 1,000 Canadian employees of SMEs on the applications and concerns regarding the use of AI tools in their HR departments.

    While just 8% of Canadian businesses are using AI to decide which employees to lay off, higher levels of adoption by HR departments could be divisive, according to Capterra research. 69% of employees would feel uncomfortable to some degree if their company used AI tools when making layoff decisions. The reasons given for discomfort surrounding this use of AI in HR include:
    On the flip side of the issue, 31% of Canadian employees are comfortable to some degree with the use of AI tools when making layoff decisions, the majority (39%) of whom believe that AI cannot take personal preferences into account and therefore is not biased. Other reasons employees are in favour of these tools include:
    • 54% of employees think it’s unethical to use AI to make HR decisions
    • 48% think that a human should be involved in decisions surrounding layoffs
    • 35% believe that AI is unable to accurately evaluate skills and performance
    • 19% believe that AI cannot make unbiased decisions
    On the flip side of the issue, 31% of Canadian employees are comfortable to some degree with the use of AI tools when making layoff decisions, the majority (39%) of whom believe that AI cannot take personal preferences into account and therefore is not biased. Other reasons employees are in favour of these tools include:
    • Avoiding biased decisions by managers (cited by 34%)
    • Making decisions based on actual performance-based data (31%)
    • Making more accurate decisions (28%)
    ethical-issues-of-ai-in-hr-CA-EE-Image_2.png

    Artificial intelligence technology can analyze huge quantities of data and propose a plan of action in seconds, so it’s no doubt that some employees have concerns about bias. When it comes to important decisions, it’s alarming to think they’ve been made completely by an algorithm; however, it’s rarely the case that HR departments implement decisions without also considering the AI-made recommendations for themselves. To reassure uneasy employees on the use of AI in HR, companies should keep their staff informed on how these tools work, what data is taken into account, and which processes HR associates are using them for.

    Tessa Anaya, analyst for this study

    Regardless of employees’ ethical stance on the use of AI in layoffs, a majority (65%) said that stress levels at work would rise if their HR departments started to use this technology in firing decisions. 35% of employees reported that they would change their behaviour at work if their company began implementing AI for layoff decisions. Of these employees:
    • 39% said that they would start developing new skills at work
    • 36% would focus more on their KPIs
    • 21% would get involved in more projects

    Trust in AI tools in the workplace

    There are a variety of uses for artificial intelligence in HR. 20% of HR departments across Canada are using AI in some capacity, and trust levels among employees differ depending on the functionality. Employees most trust the use of AI in workplace training, with 65% of employees saying that they trust it to some extent. Regarding other functionalities of AI:
    • 47% of employees believe that AI is a trustworthy tool to use in recruiting
    • 51% trust the use of AI in monitoring employees
    • 36% approve of its use for solving employee doubts
    • 25% trust the use of AI to make layoff decisions
    Although doubt still exists when it comes to AI’s usage in HR decisions, there is room for improvement. 66% of those employees whose companies are using AI tools are reportedly aware of how it is being used, while 35% of employees surveyed say they would need more information about its functionality before being able to form an opinion.

    Transparency is key when adopting the use of AI technology in the workplace. Just 6% of employees were not informed about the use of AI in HR processes. As AI tools become more popular, businesses should ensure that they keep their employees well-informed about how the technology is being used, and how it will impact them.

    Tessa Anaya, analyst for this study.

    About Capterra

    Capterra helps organizations around the world find the right software for their needs. Founded in 1999, Capterra's global product footprint, verified user reviews backbone, independent research, and tailored comparison tools, provide more than five million in-market buyers with a confidence-building discovery experience. For more information, visit www.capterra.ca.

    Methodology

    To collect the data for this study, Caperra conducted a survey from May to June 2023. To do this, a sample of 1,002 people were selected. The sample of participants is representative of the population of Canada regarding aspects of gender, and the criteria for selecting participants are as follows:
    • Between 18 and 65 years old
    • Employed part- of full-time in a junior, intermediate, manager or executive position
    • Work in a small to midsize enterprise (SME) with anywhere between 2-250 employees
    • Have been working in the same company for at least one year

    Media Contact

    Eleanor Pitcher, eleanor.pitcher@gartner.com
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