Generative AI use surges in workplaces, posing risks to employers

Nearly half (46 per cent) of Canadian workers are using generative artificial intelligence (AI) in their jobs, up from 22 per cent last year, according to KPMG in Canada’s latest Generative AI Adoption Index survey. The Index now stands at 31.6, reflecting a 116 per cent adoption growth rate since November 2023. A score of 100 indicates mass adoption.

Yet, the survey of 2,183 Canadian employees found that while the technology is being used by more people – and more frequently, users are also engaging in more risky behaviour when entering prompts, potentially posing harm to their employers.

The findings show 24 per cent of users say they’ve entered proprietary company data such as human resources or supply chain information into public generative AI platforms (up from 16 per cent in 2023) and 19 per cent say they’ve entered private financial data about their company (up from 12 per cent).

“It’s great to see such a surge in employee adoption because we know generative AI boosts productivity, but employers really need to get ahead of this to ensure their employees don’t unintentionally release private or confidential data,” says Lewis Curley, Partner, People and Change practice at KPMG in Canada. "If organizations don’t implement guardrails and provide training around generative AI use, employees could inadvertently enter sensitive company data into generative AI tools, causing risks for their employers.”

The survey found that while over 50 per cent of users say their employer encourages the use of generative AI by building it into their project checklists, nearly 40 per cent say they are not aware of any controls from their employer over the use of generative AI.

“Not only is it crucial for organizations to have policies in place but they must also clearly communicate those expectations to their people,” says Mr. Curley.

Key poll findings:

• 46 per cent of Canadian workers have adopted generative AI, up from 22 per cent in 2023
• 24 per cent of users say they have entered proprietary, non-financial (e.g. Human resources, health and safety, supply chain) data about their company into public generative AI tools
• 19 per cent say they have entered private financial data about their company into public generative AI tools
• 51 per cent say their employer encourages the use of generative AI and it is built into tasks/checklists for many projects
• 37 per cent say they are not aware of any controls from their employer over the use of generative AI

Gen AI requires strategic adoption

The way Canadians are using generative AI has remained consistent over the past year with generating ideas (33 per cent), research (30 per cent) and writing emails to colleagues (26 per cent) as the top uses.

Megan Jones, a director in KPMG in Canada’s People and Change practice, says business leaders need to start viewing generative AI as more than just a personal assistant if they want to stay ahead of the competition.

“We’re seeing the trend of using generative AI for basic tasks flowing over from personal use into the workplace, but this is low-hanging fruit compared to the true potential it has to drive business value,” says Ms. Jones. “If they don’t want to be left behind, leaders need to not only see AI as a tool for efficiency but also one that is high value-add by embedding it into the core functions of the business to enhance decision-making, streamline workflows, and create new opportunities for growth.”

Few employers have policies

As many as six in 10 Canadian organizations have implemented generative AI, a recent KPMG survey of business leaders found. Yet, fewer than two in 10 employees say their employer has a comprehensive policy in place with the majority of users describing their employers’ policy as either vague, non-existent, or one that discourages the use of generative AI.

Ms. Jones says organizations that discourage employee use of generative AI are missing a key opportunity to foster a culture of innovation and future-proof their workforce.

“As part of implementing new technologies, business leaders have a responsibility to examine what type of work is going to exist at the organization in the future and start reskilling their people for it now,” she says. “Taking a proactive approach not only puts organizations in the position to have more highly skilled people, but it also helps to ensure the work force is using generative AI tools properly and effectively.”

Intentionality is key to achieving the productivity promise

More than half (52 per cent) of employees say generative AI saves them between one to five hours of work per week, and while the majority (68 per cent) are spending that saved time on high value tasks and brainstorming new ideas, 22 per cent say they are using it for activities like exercising or running errands.

“Generative AI is a great way for organizations to free up human capital, but if they want to use that to drive specific business outcomes then they need to purposefully and clearly communicate how they expect employees to use their time,” says Mr. Curley. “Our survey shows people are spending more time brainstorming, which is great because it gives them the opportunity to do more creative and meaningful work during the day.

“While the technology can eliminate repetitive job duties, leaders should be cautious about completely replacing them with high value tasks. Sometimes work that’s deemed low value, like data entry, provides a mental break for employees and can help avoid burnout.  If organizations are not intentional about how they expect employees to use generative AI within their roles they will not unlock its full productivity benefits.”

Other poll highlights

Source: 2024 KPMG in Canada Generative AI Adoption Index