Bank of Canada Sees No Widespread AI Job Losses

OTTAWA - The Bank of Canada is not observing widespread job losses from artificial intelligence at present, though senior officials are closely monitoring the labor market as AI adoption grows, Deputy Governor Michelle Alexopoulos said Wednesday.

Speaking to a business audience in Ottawa, Alexopoulos outlined AI's potential to enhance productivity across Canada, enabling wage increases for workers without fueling inflation. In prepared remarks, she stated that by reducing business costs and boosting efficiencies, the technology could support higher wages, lower consumer prices and increased investment. As AI advances and spreads, it may fundamentally alter the Canadian economy, she added.

Alexopoulos cautioned that it remains unclear whether AI will reshape business practices as profoundly as computers or remain a potent but specialized tool. Current adoption is largely confined to sectors like finance and insurance, with minimal penetration in areas such as food services and accommodations. This uneven rollout has constrained overall productivity gains so far, according to her assessment.

The central bank has found no broad evidence of AI displacing workers, though Alexopoulos...