AI is reshaping succession planning for Canadian employers, but creating pipeline risks
Artificial intelligence is now a significant factor in how Canadian organizations design their leadership pipelines. In a survey of 1,500 hiring managers across six professional fields, 84% said AI is affecting their succession planning.
The technology is changing both who gets promoted and what skills organizations value in future leaders. More than half of hiring managers (54%) said AI is accelerating advancement for employees with strong technical capabilities. The same proportion (54%) reported that AI has changed the skills needed for future leaders, as organizations increasingly prioritize digital and AI-related capabilities.
But the shift carries a long-term risk. Nearly half of hiring managers (45%) believe AI has created gaps in the leadership pipeline by reducing entry-level positions. As automation alters or displaces early-career roles that traditionally fed into management, organizations may struggle to develop future leaders.
The impact varies by company size. Among small businesses, 36% said AI has made no significant impact on succession planning so far. Only 11% of medium-sized businesses and 14% of large businesses reported the same.
Employees see mixed signals
A separate survey of 1,482 professionals showed how workers view AI's effect on their careers. One quarter (25%) said AI is creating advancement opportunities, while another 25% said it is changing the skills needed for advancement. Seventeen percent reported that AI is creating new positions of interest to them.
How AI can improve leadership selection
AI can make succession planning more merit-based by analyzing performance data and identifying patterns that connect candidates with different success profiles. Rather than relying on visibility or politics, AI can capture real contributions-financial results, operational efficiencies, strategic insights-and surface capable but less visible employees.
AI can also expand the pool of candidates considered for leadership roles by analyzing broader datasets to find talent across different backgrounds, functions, and geographies. Assessment tools powered by AI reduce test-taking time and speed up evaluation of more candidates.
The technology can flag potential biases in hiring and promotion decisions. When trained on diverse high-performing examples, AI models can prioritize competence and potential over legacy and favoritism, reducing decisions bound by traditional stereotypes and in-group preferences.
Organizations should continue investing in experiential development, global exposure, coaching, and succession planning that reflects future demands rather than past patterns.
Learn more about AI for CHROs (Chief Human Resources Officers) or explore AI for Human Resources for deeper insights on talent management and workforce planning.
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