The BoC said AI is more likely to reshape job tasks than trigger widespread layoffs.
OTTAWA – The Bank of Canada (BoC) said there is so far no sign that artificial intelligence (AI) is causing widespread job losses.
As quoted by Reuters on Wednesday (13/5), Canada’s central bank said AI appears more likely to transform job tasks than replace workers on a mass scale.
BoC Deputy Governor Michelle Alexopoulos said the central bank continues to monitor labour market developments as AI adoption increases across various sectors.
She said some jobs are likely to be displaced and new types of work will emerge. However, there is still no evidence of large-scale labour displacement caused by AI.
“Broadly speaking, the evidence does not point to widespread worker displacement from AI,” she said at a business event in Ottawa.
The remarks come amid a wave of heavy investment by global technology companies in AI development.
Economists and analysts remain divided over the eventual impact, with some expecting a major productivity boost while others fear large-scale workforce reductions.
According to Alexopoulos, the BoC has started to see early signs of productivity gains from AI adoption.
Canada’s central bank has even begun incorporating the limited impact into its projections for potential output and broader economic forecasts.
The findings were reinforced by the BoC’s latest survey of senior risk management experts in the financial sector.
The survey showed that many institutions see AI as a decision-support tool, while humans remain firmly in control.
“This reinforces the view that AI will largely change jobs rather than eliminate them,” Alexopoulos said.
She also highlighted Canada’s ageing demographics as a factor that could accelerate AI adoption.
According to her, the retirement of working-age populations could create labour shortages, encouraging companies to adopt AI-based solutions to maintain productivity.
Even so, Alexopoulos said it remains unclear whether AI adoption will spread evenly across the economy or remain concentrated in specific sectors.
She believes AI integration in business operations could improve the efficiency of producing goods and services.
“Stronger productivity would make businesses more competitive, which could ultimately raise wages, lower costs for consumers and reduce inflationary pressures,” she said.
The view is in line with comments made earlier by BoC Governor Tiff Macklem in 2024.
At the time, Macklem said AI adoption would likely add to price pressures in the short term, but could improve economic productivity over the longer term. (SF/ZH)
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