Canadian organizations are seeing strong returns from artificial intelligence, but they may be limiting AI's impact on the workforce by measuring only the most immediate, easily tracked benefits, according to a new report from Deloitte Canada. The findings carry direct implications for HR leaders who are tasked with shaping how AI reshapes jobs, skills, and employee experience.
Overall, 88% of senior leaders at Canadian organizations said they are confident they can measure AI return on investment, and 90% reported positive productivity impacts over the past 12 months. Yet far fewer pointed to broader outcomes such as revenue growth or risk reduction as evidence of AI's value.
"Most organizations are still measuring the easiest value, not the most important value," said Nihar Dalmia, partner in AI & data at Deloitte Canada. "The leaders seeing more differentiated outcomes are expanding how AI value is measured to include revenue growth, faster decision-making, better customer experiences and new ways of working."
Operations leads AI value, but work redesign lags
Operations ranked as the top function for realized AI value, cited by 57% of respondents. That suggests many employers use AI to improve existing processes rather than redesign how work gets done.
"Most leaders are still taking an incremental approach to AI because it's the path of least resistance," said Jas Jaaj, global AI markets, ecosystems & alliances leader at Deloitte Canada. "The step change comes when organizations expand their focus beyond efficiency and rethink how work gets done end-to-end."
High confidence, yet shadow AI persists
Nearly all leaders-95%-expressed confidence in their organization's AI compliance, and 94% felt confident in internally developed AI systems. At the same time, 64% estimated that at least 11% of AI activity at their organization occurs outside approved or governed tools.
"What stands out is that trust itself isn't really the issue anymore," Dalmia said. "The bigger challenge is visibility and control."
The survey, conducted in March with 300 senior leaders at Canadian organizations-most with more than $100 million in annual revenue-also found that 96% said it is important that AI technologies be developed, hosted and governed under Canadian law.
Data quality and legacy systems remain barriers
Data quality was the most common barrier to further AI value, cited by 59% of respondents, followed by legacy system integration at 51%. Better data was named by 45% as the biggest accelerator of stronger outcomes.
Leaders continue to invest in upskilling: 86% plan to increase AI-related training, and 92% reported that employees view AI's impact positively. Dalmia noted that the leaders unlocking value aren't waiting for perfect data. Instead, they stay disciplined about individual use cases while improving the data and systems tied to their biggest priorities.
Why this matters for HR
HR teams are positioned to push AI measurement beyond productivity and cost savings. Tracking metrics like employee retention, skill acquisition, and internal mobility can reveal whether AI is actually making work better-not just faster. The report's emphasis on broader value aligns with the growing need for AI for Human Resources expertise that connects technology adoption to workforce outcomes.
Shadow AI also presents a compliance risk that HR cannot ignore. With nearly two-thirds of organizations reporting significant AI activity outside approved tools, HR leaders have a clear stake in governance, data privacy, and employee training. Upskilling programs, already a priority for most organizations, should include guidance on which tools are sanctioned and how to use them responsibly.
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