Bank of Canada says AI has not caused widespread job losses, sees limited productivity gains

Bank of Canada Deputy Governor Michelle Alexopoulos said May 13, 2026, that artificial intelligence has not yet led to broad worker displacement, while the central bank is tracking labor-market effects as adoption expands. Alexopoulos told an Ottawa business audience that AI is more likely to transform jobs than eliminate them, with some roles expected to be replaced and others created. She said the bank is beginning to see evidence of small productivity gains and is incorporating limited benefits into forecasts for potential output. The central bank’s latest survey of senior financial-sector risk experts found many view AI as a decision-support tool, with humans remaining in control. Alexopoulos said Canada’s aging workforce and potential labor shortages could accelerate AI use, though it remains unclear whether adoption will spread across the economy or stay concentrated in specific sectors. She said stronger productivity could support wages, lower consumer costs and reduce inflation pressure over time.