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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 ...
Productivity Boost From AI to Roll Out Slowly, Senior Bank of Canada ...
By Paul Vieira OTTAWA--Canada is beginning to record some early productivity gains from firms adopting artificial intelligence but it will take some time before significant improvements start to emerge, a senior Bank of Canada policymaker said. Deputy Governor Michelle Alexopoulos said Canada remains in the early days of AI adoption, adding the technology could lower costs for businesses, support higher wages and spur new investment. "AI adoption remains concentrated in a few sectors," Alexopoulos said, according to prepared remarks she is scheduled to deliver at a Ottawa economics conference. Among the sectors heavily deploying AI are financial services, information technology and health care. "This means that even if some firms are seeing benefits, it will likely take time before significant gains show up in overall productivity data." In a speech earlier this year, Bank of Canada Gov. Tiff Macklem encouraged Canadian businesses to embrace AI, and not be dissuaded by other external factors--most notably President Trump's trade policy--that are casting a dark pall of uncertainty about investments. "We can be victims of U.S. tariffs and AI disruption, or we can lean into structural change, expand our internal market, diversify our trade, embrace new technology and raise our productivity," Macklem said in remarks in February. Lackluster productivity is one of Canada's biggest underlying weaknesses, prompting warnings from Macklem and other senior officials about the pressing need for businesses to deploy capital to improve their operations. Officials have cited corporate Canada's penchant for risk aversion for a generally slow takeup in AI. Alexopoulos said there are some early signs of improvements in productivity due to AI, and that is being incorporated into the central bank's outlook. Productivity, she said, lifts living standards and "ultimately determines how fast the economy can grow when it's firing on all cylinders without generating inflationary pressures." The Bank of Canada sets interest-rate policy to achieve and maintain 2% inflation. Alexopoulos said AI will replace some jobs, although new jobs will emerge and the technology will allow workers to focus on more value-added tasks. "Some workers are already feeling the effects of AI. But, broadly speaking, the evidence does not yet point to widespread worker displacement because of AI," she said. She added AI may also help Canada deal with the coming labor shortage stemming from an agin...
AI is knocking: Canada's next productivity story - Bank of Canada
External Deputy Governor Michelle Alexopoulos discusses what we know so far about AI adoption, and what it could mean for productivity and labour markets in Canada.
Why Canada Fell Behind America, Plus labor productivity, my ...
The deputy governor of the Bank of Canada called Canada's lack of productivity an “emergency”. ... You can see that Value added is revenue minus intermediate ...
