The Canadian federal government is expanding its use of artificial intelligence (AI) to address a persistent backlog of Phoenix pay system transactions while transitioning to a potential new platform.
According to Alex Benay, associate deputy minister at Public Services and Procurement Canada, a recommendation on adopting the Dayforce system as the new human resources and payroll platform will be made by March.
In the interim, the government has been testing a virtual assistant tool powered by AI to resolve data discrepancies in pay and compensation services. Over recent months, this tool, supported by 30 compensation advisors, has processed more than 4,300 backlog transactions.
Since its 2017 implementation, the Phoenix pay system has cost the government over $3.5 billion. Additionally, more than $150 million has been spent exploring a replacement platform.
AI is streamlining repetitive tasks, accelerating decisions, and providing valuable insights into HR and pay data. Currently, the AI tool is being tested for acting appointments, leave without pay, and executive acting appointments, with plans for automated bulk processing to begin in April. Over the next year, its use will expand to more transaction types, including departmental transfers and retirements.
Human oversight remains integral, ensuring AI operates with humans “in the loop.” As of Dec. 31, 2024, the backlog included 383,000 transactions, with 52% over a year old. The government aims to eliminate older backlogs before transferring to a new system.
To enhance oversight, two boards have been launched to govern AI use, and a third-party review of the AI tool is planned for winter, with findings to be published later.
If Dayforce is approved, configuration and testing will take 18–20 months, with parallel operation of the current and new systems expected for four to six months.
Source: Swifteradio.com
