Bank of Canada: AI not causing mass job losses yet

The Bank of Canada says there is currently no evidence that artificial intelligence is leading to widespread job losses, suggesting that the technology is reshaping work rather than replacing large numbers of workers.

Deputy Governor Michelle Alexopoulos said in comments to a business audience in Ottawa that while AI is expected to change the labour market over time, the impact so far appears limited. She noted that some jobs will likely be displaced as automation expands, but new roles are also expected to emerge in parallel, News.Az reports, citing Reuters.

The central bank emphasized that current data does not indicate broad worker displacement driven by AI adoption. Instead, early evidence points to modest productivity improvements in certain sectors where AI tools are already being used to support decision-making and routine tasks.

The Bank of Canada also said its monitoring of labour market trends suggests AI is being integrated primarily as a support tool rather than a full replacement for human workers. In surveys of financial sector risk experts, most respondents indicated that humans remain central to decision-making processes even as AI use expands.

At the same time, policymakers acknowledged that the long-term impact of AI remains uncertain. It is still unclear whether adoption will spread evenly across the economy or concentrate in specific industries and job functions.

The central bank said that as Canada’s workforce ages and labour shortages increase, businesses may accelerate the use of AI to improve efficiency in production and services. Potential benefits could include higher productivity, improved competitiveness, and downward pressure on costs for consumers.

However, officials also warned that the economic effects of AI could evolve over time, with possible short-term inflationary pressures before longer-term productivity gains materialize.

News.Az 

By Aysel Mammadzada