AI is not replacing workers on a large scale so far, says Bank of Canada

By Promit Mukherjee and David Ljunggren OTTAWA, May 13 (Reuters) – The Bank of Canada on Wednesday said there were no signs so far that artificial ‌intelligence was leading to widespread job losses, adding the technology had ‌the potential to transform tasks rather than eliminate them. 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. ((Reuters Ottawa bureau))Keywords: CANADA CENBANK/