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

The Bank of Canada said on May 13, 2026 it has seen no evidence so far that AI is causing widespread job losses, noting the technology appears to be transforming tasks more than eliminating roles. The BoC reports early, small productivity gains from AI and has factored limited improvements into its output and inflation projections. Officials warned adoption could be uneven across sectors, while an aging workforce and labour shortages in Canada could accelerate AI use. Governor Tiff Macklem previously cautioned AI adoption may add to short-term price pressures but boost productivity over the long run. Market implications: modest productivity gains could ease inflationary pressures later, influence wage dynamics, and affect the BoC’s policy outlook as it monitors labour-market and sectoral impacts.