AI’s Job Impact: Bank of Canada Governor Raises Concerns

Bank of Canada Governor Tiff Macklem warned that artificial intelligence (AI) could eliminate more jobs than it creates in the long run, Anadolu Agency reported yesterday.

Speaking at the National Bureau of Economic Research’s Economics of Artificial Intelligence Conference in Toronto, he emphasized the need to understand the labor market’s evolving dynamics as AI becomes more integrated into the economy.

Macklem highlighted that workers displaced by automation may struggle to find new opportunities, raising concerns for society. He also noted that AI could influence business pricing strategies, with digitally intensive firms adjusting prices more frequently than their less tech-savvy counterparts.

Furthermore, Macklem discussed the dual potential of AI to either enhance competition among startups or lead to market monopolies, which could result in higher prices. He called on academics, businesses, and policymakers to collaborate in understanding AI’s implications for inflation and the economy, underscoring the importance of proactive measures in navigating this technological shift.