Results of the February 2026 Mercer QuickPulse® - Canada AI Survey
Understanding how artificial intelligence (AI) is transforming human resources is essential for businesses aiming to leverage its many advantages. Many HR departments already use AI and machine learning technologies to streamline hiring, reduce unconscious bias, and enhance data analytics. However, HR leaders should also be mindful of the challenges and limitations that come with integrating these technologies into their processes.
This article explores what we learned from 170 Canadian companies when we asked them about their current and planned usage of AI as well as the challenges and barriers they face.
AI and compensation management
The February 2026 edition of Mercer’s QuickPulse® - Canada AI survey reveals that although more than half of the respondents are considering how to use AI to help in compensation planning, design, and/or management, only 10% are currently using it. Of those who are, they’re primarily using AI for market analysis or benchmarking, followed by predictive analytics and automated reporting. Many report that data privacy/security concerns have been the biggest challenge in implementing AI to help with compensation.
AI’s influence on work
Are companies really replacing employees or jobs with AI? The results of this survey seem to indicate that what we’re seeing in the media might be a bit overblown:
- Thirty-five percent say they are replacing work/tasks with automation
- Only 7% indicate that AI has decreased hiring in the last 12 months due to automation; 9% said they’ve increased hiring due to new technology roles
- Most report no change in entry-level hiring levels
When it comes to finding and keeping the skills they need, the survey respondents indicated that candidates with Artificial Intelligence Leadership and Machine Learning & Deep Learning skills are the most challenging to attract and retain.
AI and your organization
How is AI being used in your organization? Are you experiencing challenges finding and building the skills you need to help your organization thrive in this rapidly changing era of technology?
Mercer has experts and tools focused on helping you navigate the major changes and impacts you’re experiencing organization-wide. From our Mercer/Gartner Information Technology salary survey module in the Mercer Benchmark Database to our rewards consultants skilled at setting rewards strategies for in-demand skills, we’re here to help. Give us a call at 866-605-1031! Or if you prefer, email us.
About the author
Rebecca Hall, Principal
Rebecca spent much of her career working in compensation in various corporate roles then transitioning to consulting with Mercer. Her current role, as the Content Leader for imercer.com, allows her to leverage her knowledge of human resources and talent strategy to create materials supporting Mercer’s Products & Services in North America.
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