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Strategy8 min read

AI and jobs in SMEs: how to automate without cutting positions

Will AI replace jobs in your SME? What Statistics Canada’s data shows, and how to reinvest the hours AI frees up instead of cutting positions.

, co-founder of Cogio

A welder in blue coveralls at work in a steel fabrication plant
Photo: Ahmet Çığşar, Pexels

The short answer

Will AI eliminate jobs in your SME? Canadian data says that, so far, very few. In the second quarter of 2025, among businesses that had used AI, 89.4% reported no change in their employment levels, according to Statistics Canada. What changes is the tasks: AI takes on data entry, follow-ups and compiling, and frees up hours.

So the useful question is not “how many positions will AI cut?” but “what will we do with the hours it frees up?” That decision belongs to management, and it is made before the project, not after.

What the data says

Statistics Canada has been asking businesses about the effect of AI since 2024. Here are the results published for the second quarter of 2025, among businesses that had used AI in the previous 12 months.

Effect of AI on total employment, Canadian businesses using AI (Statistics Canada, second quarter of 2025)
No change84.9%89.4%
Decrease6.3%6.3%
Increase8.8%4.3%

Tasks change, teams stay

The same survey measures the effect on tasks previously done by employees. In 2025, 47.2% of businesses using AI reported a small reduction, 32.4% a moderate reduction and 5.3% a large one, while 15.1% saw no reduction. In Quebec, the Institut de la statistique du Québec reports that 37.7% of businesses say AI has reduced those tasks to a moderate or large extent.

These numbers have limits. They cover the 12 months before the survey, at a time when most businesses are only at their first uses. They also rest on what businesses report, not on payroll records. Nobody can say for sure that the trend will hold once agents take on whole processes. What can be said is that the outcome is not automatic: a business that automates chooses what it does with the freed hours.

Put differently, AI nibbles at repetitive work without making positions disappear. That matches what we see on the ground: an agent that enters invoices removes the keying, not the person who understands suppliers, jobs and exceptions.

Three ways to reinvest the freed hours

Once tasks are automated, management has three options. They are not mutually exclusive.

  • Sell more. The hours go into prospecting, sending more quotes and following them up. It is the most profitable choice when demand is there.
  • Serve better. The hours go into client relationships: follow-up calls, visits, faster answers. That is where loyalty is built.
  • Absorb growth without panic hiring. When recruiting is hard, AI lets you take on more contracts with the same team and wait for the right hire.

The Les Industries Romy example

Les Industries Romy, a structural steel fabricator in Granby, faced falling orders caused by US tariffs. It needed to prospect, but its three project managers spent their weeks on invoices, follow-ups and coordination.

According to management’s estimate, AI agents now free up 152 hours a week, including 109.2 hours for the project managers, who went from 120 to 10.8 hours of administrative work. No position was cut. The project managers reinvest those hours in client relationships, and the owner says he sends roughly two to three times as many quotes. The drafter, freed from producing the drawings he now reviews, spends 80% of his time on project management.

These figures are management’s estimates, not yet measured over a full year. The details are in the Romy case study and in our article on the hours freed.

What stays human, and why that is by design

In a well-run project, the human share is not a leftover: it is designed. A price, a deadline, a commitment to a client or a payment above a threshold always goes through a person. An email to a client is left as a draft. The drafter approves every drawing before it goes to the shop.

That split moves work toward what calls for judgment: understanding what the client really wants, catching the exception the rules did not foresee, negotiating. Those are also the tasks employees find most interesting. An AI project that promises zero human hours is really promising that nobody will be left to check.

How to automate without worrying the team

How you run the project matters as much as the technology. Five practices make the difference.

  • State the intent from day one. Say clearly that the project targets tasks, not positions, and what will happen to the freed hours.
  • Involve the people who do the work. They know the exceptions, and they are the ones who will approve the agent’s work.
  • Keep a human in the loop. Anything that commits the business, such as a price, a deadline or an email to a client, goes through a person.
  • Train. Statistics Canada reports that in 2026, 32.0% of businesses using AI provided AI-related training to existing employees. In Quebec, Services Québec’s MFOR can fund that training at up to 75%. See our Funding page.
  • Measure and share. Publishing the hours freed and what was done with them turns worry into pride.

Write down the rules

An AI acceptable use policy puts in writing what AI may do, what it never does alone and which data it may read. On the Law 25 side, our compliance support covers the privacy impact assessment. And when the agents run as sovereign AI, on a server on your premises, employee and client data stays inside the company.

To go further, our guide on how to integrate AI in your business lays out the plan, and our pages for manufacturers, law firms, healthcare and real estate show uses by industry. If you run Business Central or Acumatica, the agents connect directly. Read about our approach.

Frequently asked questions

Will AI replace jobs in SMEs?

So far, few. According to Statistics Canada, 89.4% of Canadian businesses using AI in 2025 reported no change in their employment levels. AI mostly replaces repetitive tasks.

Which SME jobs are most affected by AI?

Roles where much of the time goes to data entry, follow-ups and compiling: accounting, administration, project coordination. These roles shift toward checking, client relationships and management.

What should we do with the hours AI frees up?

Reinvest them in sales, customer service or growth. At Les Industries Romy, project managers put them into client relationships and the company sends more quotes.

How should we present an AI project to employees?

By stating from the start that the project targets tasks, not positions, involving the people who do the work and giving them the approval of the agent’s output.

Is AI training for employees subsidized?

Yes. In Quebec, Services Québec’s workforce training measure (MFOR) can fund training at up to 75% of eligible costs, subject to the business’s eligibility.

Sources and references

This article is a plain-language summary, accurate as of the date shown. It is not legal, tax or financial advice: for your own situation, consult a qualified professional.