world-economy

Bank of Canada Signals Productivity Gains Without Major Job Disruption

Canada's productivity outlook brightened this week as the Bank of Canada projected economic benefits from artificial intelligence adoption without significant employment losses. Michelle Alexopoulos, the central bank's external deputy governor, outlined how widespread AI implementation could drive output per worker while strengthening business competitiveness and worker compensation. The assessment suggests consumer cost savings and wage improvements alongside productivity gains. The Bank of Canada's optimistic stance addresses long-standing concerns about labor market disruption, positioning AI adoption as complementary to rather than destructive of employment. Alexopoulos delivered the remarks during her first speech in the role, signaling the central bank's focus on understanding technology's economic implications.