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How artificial intelligence can help Canadian small businesses boost productivity

At an international symposium, experts discussed the technology’s role in the future of work
December 15, 2023
Two women stand in a storeroom beside boxes and bags and look at a handheld electronic device.

On Dec. 5, 2023, academics and researchers from across North America and Europe gathered to share research on artificial intelligence (AI). The Symposium on AI Opportunities and Challenges was hosted by two universities in Sweden, the Mid Sweden University and the University of Gävle. It brought together more than 100 academics, who shared their research relating to AI’s significant impact on education, which is transforming various aspects of the teaching and learning experience. 

In 2023, AI continued to enter mainstream usage through tools like ChatGPT and AI plug-ins. The advancement of AI has also resulted in the uncovering of flaws and biases that are built into it. The conference was a forum for learning and a discussion of AI’s strengths and weaknesses. Topics discussed included how AI is having an impact on curriculum design, helping create personalized learning, bridging tool gaps and more. 

Wendy Cukier, founder and academic director of the Diversity Institute (DI) and research lead for the Future Skills Centre (external link)  (FSC), presented on bridging the AI tool gap in small and medium-sized enterprises (SMEs). In Canada, almost 90% of private sector jobs are with SMEs (external link) , and those jobs are critical in all sectors of the economy. Since 55% of Canadian businesses have fewer than five employees (external link) , Cukier said their capacity to use AI is often limited. 

The gap between the creation of AI and its adoption

Some of the ways AI is being used in Canada are through e-commerce chatbots, complex data analysis and financial market forecasting. Research shows that 35% of Canadian businesses use AI in their operations (external link) , compared to in the U.S., where over 70% of businesses use AI. While Canada is well established in terms of developing AI technology, Cukier said there’s a huge gap between its creation and its actual adoption. 

“Innovation is not just about building new tech; it’s about using them to do things differently,” she said.

Cukier said most people focus on technology rather than on what it can do. “And frankly, most small businesses don't care if it's AI or a hamster wheel, so long as it's advancing their organizational goals.”

The application of AI in HR practices

One area in which AI has seen huge adoption is in human resources (HR), Cukier said, pointing to research that found almost  (PDF file) 80% of employers are using AI in hiring processes (external link) . Following the COVID-19 pandemic, which created major shifts in how organizations operate, AI tools are supporting the hiring process by anonymizing resumes, conducting structured interviews and more. The FSC and DI’s labour market research shows the recovery of the labour market, but that procuring talent continues to be a challenge for many businesses. Moreover, other FSC and DI research shows working Canadians are still dealing with the prolonged effects of the pandemic.

Cukier said that HR departments often end up replicating bias because of how they use AI in their hiring processes to analyze current employees. “If their existing employee base is very homogeneous, they replicate those biases,” she added. There's a lot that needs to be improved, she emphasized, which requires attention to the HR applications, adoption processes and ethical issues to avoid creating further barriers for equity-deserving groups in Canadian companies.

Later in the conference, Cukier presented on enhancing personalized learning with AI for future skills and the future of work. She opened with research that shows skills vacancies represent $25 billion in unrealized economic value (external link) . “We know that technological skills are still very much premium,” she said, adding that it’s not machine learning that is in high demand (external link) . Instead, it is basic digital skills like the use of Microsoft Office, Excel and Salesforce. 

How AI can support upskilling and reskilling

“We also know that in Canada we have a massive gap in terms of equity, diversity and inclusion,” Cukier said, pointing to research that shows  (PDF file) men are four times as likely to work in tech than women, and men earn more in tech occupations (external link) . Black people, Indigenous Peoples and immigrants face systemic barriers when entering technology fields. Moreover, she noted that although there are huge labour gaps, Canada has problems with its processes for recognizing internationally educated professionals. 

In the skills and employment ecosystem, Cukier said technology can address issues through the development of skills, the creation of innovative approaches to recruitment, and programs to upskill and reskill employees. She pointed to several large U.S. companies that saw positive impacts across their organizations by investing in  (PDF file) upskilling their workforces (external link) . At DI, innovative programs like the Advanced Digital and Professional Training (ADaPT) program and ADaPT4Success are showing promise in helping youth and early career seekers, a high proportion of which are members of equity-deserving communities, develop the core skills employers are seeking

To close, Cukier said that FSC and DI are developing platforms with AI tools to support SMEs throughout their hiring process, from recruitment, to training, to engagement and more. “As disruptive as the new technology may be for existing jobs, it can also be part of the solution to many issues, like matching diverse job seekers with opportunities, helping them develop the skills they need to succeed and ensuring organizations are more productive.”