Ontario is taking a clear step toward transparency in hiring. Effective January 1, 2026, employers with 25 or more employees will be required to disclose the use of artificial intelligence (AI) in the recruitment process for publicly advertised job postings.
For employers, this is not just a “check-the-box” update to job ads. It requires understanding where AI is actually being used in your hiring process and putting practical controls in place to support compliance.
Who the requirement applies to
The disclosure obligation applies if all three of the following are true:
- You employ 25 or more employees in Ontario (including full-time, part-time, and casual employees).
- The role is publicly advertised (for example, on your website, LinkedIn, Indeed, or a recruitment agency’s site).
- AI is used at any stage of screening, assessing, or selecting applicants.
If you have fewer than 25 employees, the disclosure requirement does not apply — though best practices around transparency and fairness still do.
What counts as “AI use” in recruitment?
This is where many employers underestimate their exposure. You do not need to be using cutting-edge or custom-built AI for the requirement to apply. If a tool uses automation, machine learning, or algorithmic decision-making to evaluate candidates, it likely counts.
Common examples of AI use include:
- Resume screening tools that automatically rank, score, or filter candidates based on keywords, experience, or predicted “fit.”
- Applicant Tracking Systems (ATS) that auto-reject candidates who do not meet certain criteria without human review.
- Pre-recorded video interview platforms that analyze speech patterns, facial expressions, tone, or word choice.
- Automated skills or personality assessments that generate scores used to shortlist candidates.
- Chatbots that pre-screen applicants and decide who progresses to the next stage.
- Third-party recruiters or agencies using AI tools on your behalf as part of the screening process.
If an AI tool influences who advances and who doesn’t, assume disclosure is required.
What the law actually requires
Employers must include a clear, plain-language statement in the publicly advertised job posting (and any associated application form) that AI is used in the hiring process.
What this actually means:
To implement this properly, employers should focus on execution, not just wording.
- What tools are being used
- How to answer candidate questions
- The limitations of AI outputs
1. Audit your recruitment process
Map every step of your hiring workflow. Identify where decisions, rankings, or filters are automated — including tools used by external recruiters.
2. Update job posting templates
Add a standard disclosure line such as:
“This recruitment process uses artificial intelligence tools to screen or assess applications.”
Ensure this appears consistently across all platforms.
3. Review vendor contracts
Confirm that vendors can clearly explain how their AI works, what data it uses, and whether bias testing has been performed. Consider adding contractual language requiring transparency and cooperation for compliance purposes.
4. Maintain human oversight
AI should assist, not replace, decision-making. Ensure hiring managers understand they are responsible for final decisions and can override AI recommendations.
5. Train HR and hiring managers
They should understand:
6. Align with privacy obligations
Confirm compliance with PIPEDA and internal privacy policies, including data retention, access, and candidate rights.
Final takeaway
For Ontario employers with 25+ employees, AI disclosure is no longer optional — but it doesn’t have to be burdensome. The key is knowing where AI is actually being used, being transparent with candidates, and ensuring proper governance behind the scenes.
Handled well, this change can strengthen trust, reduce legal risk, and reinforce fair hiring practices — all while continuing to benefit from responsible automation.
Written by: Tiffany Leung, Partner, Consultant