Canadian employees call for clear and transparent AI policies as adoption grows

Employees want better training from employers, with nearly half worried they'll lose their job if they can't keep up with AI advancements

TORONTO, Nov. 27, 2025 /CNW/ - As Canada's workforce continues to embrace generative artificial intelligence (AI), many employees feel their organization's training and policies are lacking. New research from KPMG in Canada finds that generative AI adoption has risen to 51 per cent, up from 46 per cent a year earlier. Yet, as employees are expected to integrate AI into daily work, they're demanding better training and clearer policies from their workplace.

Now in its third year, KPMG's generative AI adoption index survey shows that while adoption continues to rise each year, the pace of growth has slowed in 2025 compared to 2024. Megan Jones, a partner in the People and Change practice at KPMG in Canada, says this slowdown could be due to growing pains within organizations as their AI journey evolves from experimentation to more concrete integration. Many employees still lack a clear understanding of how to use the technology effectively in their roles.

"Employees were using AI in their personal lives and were often ahead of their companies to begin with, but now, employers are catching up and need to engage their workforce more broadly to drive adoption," says Ms. Jones. "It's crucial that organizations are investing in tailored training programs, clearly communicating their AI policies and offering their people upskilling opportunities so their workforce is equipped with the confidence to integrate AI into their day-to-day tasks. Without this, employees can feel overwhelmed or unsure where to begin, which makes them less likely to use these tools and also risks disengagement from the broader digital transformation."

Indeed, survey findings show that employees also recognize the importance of improving their AI literacy with 83 per cent saying they want and/or need to learn how to use generative AI tools more effectively as nearly half say they fear job loss if they can't keep up with AI advancements. Yet only 48 per cent say the training their employer has provided has been helpful.

Nearly three-quarters appear to be facing technology overload with 36 per cent saying they received training but have not started using the tools because they are too busy to implement new work processes. A further 37 per cent admitted that they started using AI after being trained but stopped because it was too overwhelming.

"It's encouraging to see how eager employees are to use AI but it's apparent they are scared of losing their jobs, overwhelmed by the pace of change and feel underprepared for what's ahead. If this continues, organizations risk losing the productivity gains AI is meant to provide," says Ms. Jones. "Our survey shows most employees are concerned about hallucinations or inaccuracies in generative AI responses with nearly half admitting this stops them from using the tools at work. Regular AI literacy programs can clear up confusion and teach best practices, helping people feel more confident about using AI. Organizations should focus on emphasizing that AI is not a shortcut and instead is here to enhance roles by enabling people to work smarter, deliver higher-quality outcomes and unlock creativity."

Key survey highlights:

• 51 per cent of Canadian employees surveyed by KPMG use generative AI tools at work, up from 46 per cent in 2024 and 22 per cent in 2023
• 73 per cent use generative AI tools daily to a few times per week, up from 64 per cent in 2024 and 61 per cent in 2023
• 83 per cent say they want and/or need to upskill to learn how to use generative AI tools more effectively
• 46 per cent worry about their job being replaced by someone who can really use generative AI tools effectively
• 48 per cent say their employer has provided them with the training and guidance they need to improve productivity in their role
• 36 per cent say they received training on how to use AI in their role but haven't started using it because they are too overwhelmed/busy to implement new work processes
• 37 per cent say they received training on how to use AI in their role and started using it but stopped because they are too overwhelmed/busy to implement new work processes
• 58 per cent are extremely or very concerned about hallucinations or inaccuracies in gen AI responses
• 46 per cent say their concern about hallucinations holds them back from using gen AI tools at work

AI training must be personally relevant

As the frequency of AI use continues to increase, nearly eight in 10 say generative AI tools have improved their productivity at work with over half using the time they save to work on higher-value tasks. The majority (62 per cent) report using it for research, closely followed by idea generation (58 per cent) with 37 per cent saying they use it to summarize public information. 

To drive productivity, Davin Gnanapragasam, Chief Technology Officer and Tax Partner at KPMG in Canada, says organizations must prioritize personalized training opportunities for employees that teach them how to identify specific-use cases while setting realistic expectations around AI use in workplaces.

"AI success isn't about being the most tech-savvy, it's about being the most adaptable. Training should empower employees to understand how to strategically apply AI to their day, so it frees up time for more value-added work, rather than a one-size-fits-all solution," says Mr. Gnanapragasam. "What works for one person may not work for another. For example, AI can summarize meeting notes brilliantly, but if you rarely need summaries, that feature won't save you time. True AI literacy is about making AI personally useful and engrained in everyday tasks so that it's second nature."

The survey finds employees are craving clarity around AI use in the workplace as nearly 50 per cent say they think using AI should be a mandatory policy across Canadian organizations. Yet, 40 per cent say they don't know what AI controls are in place at their organization with just 29 per cent saying their employer has a comprehensive policy.

"Canadian organizations have an opportunity to turn employee interest into measurable impact. But to achieve this, they can't leave employees guessing at the expectations around AI use. Comprehensive policies should be paired with training that bridges deep industry expertise and a strong understanding of AI," says Mr. Gnanapragasam. "When employees learn how AI applies to their specific sector, they gain the confidence and skills to use it where it matters most. Building true AI literacy will help organizations unlock the ROI they've been missing."

Other poll findings:

• 79 per cent say generative AI has improved their productivity
• 51 per cent say they are redeploying the time they save with AI to higher-value work, up from 45 per cent in 2024
• 62 per cent say they use generative AI for research; 58 per cent for idea generation and 37 per cent for summarizing publicly available information
• 49 per cent agree that using AI should be a mandatory policy at all Canadian organizations
• 40 per cent don't know what AI controls are in place at their organization
• 29 per cent report their employer has a comprehensive AI policy, up from 18 per cent in 2024

About the KPMG Generative AI Adoption Index Survey

The KPMG Generative AI Adoption Index measures the use of generative AI tools among Canadian employees and is weighted on frequency of use, with a score of 100 indicating mass adoption. The index is based on a KPMG in Canada survey of 2,239 employees (aged 18+) from August 15 - 29, 2025, using Sago's Methodify online research platform. The index score for 2025 is 36.74, an increase of 22 points since 2023. The margin of error is +/- 3 percentage points, with a confidence level of 95 per cent.

About KPMG in Canada

KPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country.

The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see kpmg.com/ca.

For media inquiries:

Alannah Page
National Communications and Media Relations
KPMG in Canada
(306) 934-6255
alannahpage@kpmg.ca

SOURCE KPMG LLP