Bank of Canada expects limited job losses in AI transformation
Michelle Alexopoulos said 90% of AI-adopting businesses reported no staffing changes, while the central bank sees productivity gains ahead.
- On Wednesday, Bank of Canada external deputy governor Michelle Alexopoulos told an Ottawa business audience the central bank sees no evidence of widespread AI-driven job losses, though officials are closely monitoring labour market trends as adoption advances.
- Comparing the shift to the introduction of computers, Alexopoulos explained that while specific roles like typists disappeared, new positions such as "entire IT departments" emerged; ultimately, computerization did not lead to fewer total jobs.
- A June 2025 AIA Statistics Canada study cited by Alexopoulos found almost 90 per cent of businesses adopting AI reported no effect on staffing levels, while roughly 4 per cent reported job creation and approximately 6 per cent decreased staff.
- Alexopoulos emphasized that while AI may disproportionately affect younger workers, it also offers potential to transform roles and boost productivity, which could support higher wages and lower consumer prices in Canada without stoking inflation.
- Whether AI becomes a general-purpose technology like electricity or remains a niche tool remains uncertain, Alexopoulos stated, as the bank continues monitoring for signs of material labour market impacts as adoption evolves.
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12 Articles
Bank of Canada Sees AI as Possible Productivity Salve
The Bank of Canada struck an optimistic tone on the economic impact of artificial intelligence, arguing that widespread adoption of the technology will boost the country’s ailing productivity without significant job losses.
The Bank of Canada does not see widespread job losses due to artificial intelligence, but monitors the labour market.
The Bank of Canada does not yet see widespread job losses due to artificial intelligence, but the central bank's senior officials monitor the labour market closely as its adoption progresses.
AI is not replacing workers on a large scale so far, says Bank of Canada
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.
The Toronto Star
Bank of Canada expects limited job losses in AI transformation
OTTAWA - The Bank of Canada isn’t yet seeing widespread job losses from artificial intelligence but senior officials at the central bank are watching the labour market closely as adoption
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