Synopsis
The Bank of Canada reports no widespread job losses due to artificial intelligence. AI is seen as a tool to transform tasks, not eliminate them. While some jobs will be replaced, new ones will emerge. Early signs show small productivity gains. This technology could boost efficiency, leading to higher wages and cost savings for consumers.Listen to this article in summarized format
Deputy Governor Michelle Alexopoulos said the central bank was closely monitoring the employment market and anticipated that as AI becomes more prevalent, some jobs would be replaced and new ones would emerge.
"But, broadly speaking, the evidence does not yet point to widespread worker displacement because of AI," she told a business audience in Ottawa.
As technology companies funnel billions of dollars to support AI growth, experts variously predict this will lead to massive productivity gains or huge job losses.
"We are starting to see evidence of small productivity gains from AI," Alexopoulos said, adding the BoC was incorporating limited gains into its projections and estimates of potential output.
The bank's most recent survey of senior experts in risk management in the financial sector showed many see AI as a tool to support decision-making, while still keeping humans very much in charge, she said.
"This reinforces the view that AI will mostly transform jobs - not eliminate them," she added.
Talking specifically about Canada, she said as an aging population retires out of the workforce, labor shortages would likely speed up the development of new ways to use AI.
Alexopoulos said it was not yet clear whether AI use would spread across the entire economy or be focused on certain sectors or tasks.
As AI is incorporated more in workplaces and businesses, it could boost efficiency in the production of goods and delivery of services.
"Stronger productivity will make businesses more competitive, leading to higher wages for workers, cost savings for consumers and less pressure on inflation," she said.
Governor Tiff Macklem said in 2024 that adoption of AI by businesses could add to price pressures in the short terms and productivity growth in the long term.
