WSIB Lays Off 566 Workers, Union Blames AI Automation Push

NewsData.io · United States · Sep 1, 2026

Ontario's Workplace Safety and Insurance Board (WSIB) laid off 566 employees—including case managers and customer service reps—with the union and affected workers saying AI implementation drove the cuts. Workers report they were directed to train an AI claims summary tool built by Owl.co (a $7.3M contract) before receiving layoff notices, raising concerns about being made redundant by systems they helped develop. The union has filed grievances over lack of transparency around technological changes, and employees have flagged accuracy issues with the AI, including incorrect policy numbers. The case is a concrete example of AI-driven workforce displacement in claims-processing roles, a function widely targeted by HR and insurance tech vendors.