AI for HR in Canada and the US: What's new for 2026 and what employers are doing

Businesses are incorporating artificial intelligence across several human resources stacks: tools that rank resumes, match candidates with open jobs, conduct initial interviews, generate interview questions, summarize interviews and produce interview scores and red flag reports for HR teams. 

With the introduction of new AI regulations in Canada and the United States, such as Ontario's Working for Workers Four Act, 2024, which came into force 1 Jan. 2026, and the California Consumer Privacy Act's automated decision-making technology regulations, businesses are asking: is the use of AI for HR purposes allowed and — if so — what, if any, disclosure obligations apply, how can the risk of discrimination be mitigated, what privacy obligations apply to the collection, use and disclosure of personal information and what governance policies can further mitigate HR risks when using AI tools? 

A threshold question in Canada: Is your business or organization federally regulated?

In Canada, which laws and regulations may govern use of AI tools for HR purposes will generally depend on whether a business or organization falls under federal or provincial jurisdiction. Employers subject to federal oversight — such as banks, telecommunications companies, airports or other employers that are not entirely regulated at the provincial level — may be required to comply with existing federal legislation addressing discrimination, workforce equity, pay equity and accessibility, such as, respectively, the Canadian Human Rights Act, the Employment Equity Act, the Pay Equity Act and the Accessible Canada Act.

They may also be subject to federal privacy laws, such as the Personal Information Protection and Electronic Documents Act in the case of private sector businesses or organizations or the Privacy Act in the case of Canadian federal agencies and institutions.