Nearly one in three Canadian workers admits to exaggerating their AI skills on the job, according to a TD Bank Group survey that raises red flags for HR departments trying to build capable teams.
The 2026 TD AI Insights Report, based on responses from 2,501 Canadians in February, found 32 per cent have overstated their AI abilities at work. Three-quarters rate their own AI skills a "C" or lower, while just four per cent give themselves an "A."
"AI is becoming more prevalent across the world of work but for many people it still feels new and unfamiliar," said Luke Gee, senior vice president, chief analytics and AI officer at TD Bank Group. "The pace of change can feel fast, and it's natural that confidence takes time to catch up. We're in a period where people are building new skills and figuring out how these tools can support the work they already do."
The survey also found 78 per cent of Canadians believe AI adoption in the workplace is inevitable. That belief varies sharply by generation: 89 per cent of Boomers see it as inevitable, followed by Gen X at 81 per cent, Millennials at 79 per cent, and Gen Z at 65 per cent.
Training lags behind AI adoption
Workers who use AI report real benefits. Fifty-nine per cent say it makes them more productive, and 58 per cent say it gives them a competitive edge over peers in similar roles.
But only 37 per cent say they have received adequate AI training from their employer. More than half - 53 per cent - say their workplace is falling behind other organizations in adopting AI.
"The future of work will require organizations to help people develop new skills as technology evolves," said Melanie Burns, senior executive vice-president and CHRO at TD Bank. "Those that prioritize learning and equip employees with the right tools and support will ensure their people thrive."
HR teams looking to close the skills gap can draw on guidance from the World Economic Forum, HiBob, and the U.S. Department of Labor. The recommendations are practical and specific.
Replace self-reported ratings with observable behaviour
Instead of asking employees to rate their own proficiency, build a shared framework of observable AI behaviours. This standardizes hiring, coaching, and performance evaluation so managers aren't improvising against inconsistent standards, according to the HiBob AI Skills Report.
HR should also weight verifiable credentials over self-reported familiarity. Employees who list AI skills backed by a recognized university or company certificate see stronger hiring outcomes than those who simply claim tool experience, according to the World Economic Forum.
Watch for the "false expert" effect, particularly among entry-level staff. Younger and less experienced employees may overestimate their proficiency in foundational skills like communication and critical thinking, mistaking general confidence for AI competence. Assessments should test applied judgment, not just self-perceived expertise.
Train for the job, not the generic module
Structured, personalized training outperforms one-off sessions. Employees respond with far stronger engagement when training is tailored to their role rather than delivered as generic modules, according to the World Economic Forum.
Embedding AI learning directly into daily workflows also improves uptake. HR should integrate upskilling into the tools and tasks employees already use, rather than relying on standalone training videos.
Employers should align training with the specific AI skill demands of their industry and region. Partnering with local training providers can help ensure programs match the skills employers actually need, according to the U.S. Department of Labor.
For HR professionals, the gap between perceived and actual AI skills is a hiring and retention risk. Building assessment rubrics, verifying credentials, and tying training to real job tasks are concrete steps that turn the survey's warning into actionable policy. Resources like AI for Human Resources and the AI Learning Path for HR Managers offer structured ways to address these gaps.
Why this matters for HR professionals
Self-reported AI skills are unreliable, and most Canadian workers admit their abilities are mediocre. HR teams that rely on employee claims will build teams on shaky ground. The fix is concrete: replace self-assessments with behavioural rubrics, verify credentials, and embed training into the flow of work. Employers that do this will have a measurable edge in productivity and retention as AI adoption becomes universal.
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