OTTAWA – Bank of Canada officials say they’re keeping a close eye on how artificial intelligence will affect the Canadian economy — for better or worse.
The central bank touched on artificial intelligence in its monetary policy report released alongside today’s rate cut announcement.
Bank of Canada governor Tiff Macklem says AI could have the kind of impact computers or the internet had on global commerce and living standards.
Macklem says the process of AI innovation will create new industries and products but also risks putting people out of work.
The bank’s monetary policy report points out that the United States has benefited greatly this year from AI investment and a surge in stock prices for firms linked to the technology.
But it also says a significant reassessment of AI’s performance could cause a sharp correction in stock market valuations — potentially hurting consumer confidence in the U.S. and Canada and spurring a widespread economic downturn.
This report by The Canadian Press was first published Oct. 29, 2025.
