(Ottawa) There is considerable uncertainty about how artificial intelligence could affect the economy in the coming years, including the labour market and price growth, according to Bank of Canada Governor Tiff Macklem.
Published at 9:25 a.m.
Nojoud Al Mallees
The Canadian Press
In a speech in Toronto at a conference on the impacts of artificial intelligence on the economy, Macklem said Friday the central bank is approaching the issue cautiously to better understand how artificial intelligence (AI) could affect its task of keeping inflation low and stable.
“Be wary of anyone who claims to know where AI is going to take us. There is too much uncertainty to have any assurance about it,” he said, according to the written version of his speech.
We don’t know how fast AI will continue to advance. And we don’t know the magnitude of the economic and social impacts it will have, or when they will occur.
Tiff Macklem, Governor of the Bank of Canada
The Bank of Canada Governor mentioned that AI has the potential to increase labour productivity, which would raise living standards and grow the economy without stimulating inflation.
In the short term, he noted that investments in AI increase demand and could be inflationary.
However, Mr Macklem also highlighted more pessimistic scenarios, in which AI could destroy more jobs than it creates or lead to less competition.
The governor called on academics and businesses to work together to better understand the potential impacts of AI on the economy.
“When you come into a dark room, you don’t rush in. You move cautiously, feeling around. And you try to find the light switch. That’s what we’re doing now. What we need as a central bank is more light,” he illustrated.
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