The federal government is using AI to reduce the Phoenix pay backlog while testing a new system for payroll and HR.
Ottawa: The federal government is stepping up its game by using artificial intelligence to tackle the Phoenix pay system backlog. This move comes as they look to transition to a new platform.
According to Alex Benay, who works at Public Services and Procurement Canada, they’re hoping to recommend the Dayforce system for HR and payroll by the end of March.
In the meantime, they’re dealing with a hefty backlog of transactions. They’ve even got a virtual assistant tool powered by AI to help sort out pay and compensation issues.
This tool has been in the works for a few months now. With the help of 30 compensation advisors, it’s already processed over 4,300 backlog transactions.
Since 2017, the government has poured at least $3.5 billion into the Phoenix pay system, which has had its fair share of troubles. They’ve also spent over $150 million looking for a replacement.
Benay mentioned that AI is really helping to speed things up by automating repetitive tasks and providing insights into HR and pay data.
Right now, they’re testing the AI assistant for three types of transactions: acting appointments, leave without pay, and executive acting appointments. They plan to roll out automated bulk processing for these in April.
Looking ahead, they want to expand AI use to more transaction types next year. Eventually, it could help with all sorts of cases, like transfers and retirements.
However, Benay stressed that human verification will always be part of the process. They’re not just handing everything over to the AI.
As of December 31, 2024, the backlog stood at 383,000 transactions, with over half of them being more than a year old. The government is keen to ensure that no backlog older than a year makes it into the new system.
Benay pointed out that while humans can only learn so fast, the intake of new transactions keeps coming. That’s why the AI work is so important—they need to pick up the pace.
To keep things in check, the government has set up two boards to oversee AI use and is considering a third-party review of the AI tool this winter, with results to be shared once it’s done.
Benay is optimistic about the AI virtual assistant tool, saying it will significantly boost automated processing in the new year. They’ve been using robotic process automation for a while, but now they’re evolving into AI.
If Dayforce gets the thumbs up, it’ll take about 18 to 20 months to configure and test before they can launch it. The current and new systems will likely run side by side for four to six months.
This report by The Canadian Press was first published on January 23, 2025.
Catherine Morrison, The Canadian Press
