New AI Tool Maps the Money and People Behind Canada's $10 Billion Pay System Failure
An interactive website built with artificial intelligence is now exposing the connections between government officials, lobbyists, and contractors involved in the Phoenix pay system scandal - one of Canada's costliest procurement disasters.
The Phoenix system was supposed to centralize federal payroll. Instead, it produced overpayments, underpayments, and missed payments. The original system cost nearly $5 billion. Its replacement is estimated at more than $4 billion, bringing the total to nearly $10 billion, according to Auditor General Karen Hogan.
The new tool pulls data from the government's lobbying registry, auditor general reports, media stories, and government press releases to create visual maps of who lobbied whom and when. Users can click buttons to filter for "revolving door" connections - people who moved from government jobs to private-sector roles on related contracts.
What the Tool Reveals
The website highlights Gianluca Cairo, former chief of staff to the federal innovation minister. Cairo was in government during the Phoenix crisis, then joined Ceridian HCM Holding Inc., one of the leading bidders to replace the system. Ceridian's Dayforce software eventually won the contract. The federal ethics commissioner cleared Cairo's move, provided he followed lobbying rules.
The Globe and Mail reported at the time that Ceridian was conducting a "charm offensive" to gain influence in Ottawa.
Regan Watts, a former Conservative government staffer, also appears in the tool's revolving door section. Watts logged multiple lobbying registry entries for Dayforce. None of the individuals identified have been alleged to have broken ethics rules.
Watts said the website is "demonstrably inaccurate and lacks even basic context." He wrote that his organizations "see results and governments are better informed, making wiser choices as a consequence."
How the Tool Works
The system is built on Claude Code, an AI platform. Users with basic coding knowledge can launch investigations with simple commands. The program deploys AI agents to search the lobbying registry, scan media reports, and verify facts.
Any Canadian can now find "revolving door" connections to virtually any government contract or spending program. The tool then builds an interactive website displaying the results.
Government Accountability Experts See Value
Ian Stedman, a York University professor and former Ontario Integrity Commissioner, called the mapping "absolutely brilliant." He said ethics commissioners across Canada should use similar tools with every conflict-of-interest investigation.
"This visualization of the connections, and the justification and the sources - this should be released with every report about conflicts of interest," Stedman said. "To make it interactive and digestible and visual."
He added that government watchdogs need to ensure their data are searchable, sortable, and downloadable so journalists and the public can compile and analyze them independently.
In 2018, then-federal ethics commissioner Mario Dion proposed developing an "electronic oversight tool" using artificial intelligence. Such a system could automatically flag potential conflicts of interest before they occur or escalate.
Privacy Concerns Remain
The current Conflict of Interest and Ethics Commissioner's office said it is exploring new technological tools but faces constraints. Spokesperson Melanie Rushworth said the office handles sensitive and private information that must be protected from third parties, including AI platforms.
"This obligation necessarily limits the tools and technologies that could be considered by the Office with consideration of our legal obligations, mandate, and risk considerations," Rushworth wrote.
Dion noted in his 2018 speech that consent mechanisms could allow public office holders to authorize their information for use by in-house AI tools.
The Next Phase
The Phoenix pay system mapping is the first application of this engine. The code can be adapted to investigate any government contract, lobbying relationship, or corporate-government interaction.
The tool's accessibility means opposition MPs and journalists now have a faster way to identify patterns in government spending and influence networks.
Learn more about AI for Government and Generative Code applications.
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