Bank of Canada governor says AI could be both good and bad for Canada’s economy

Tiff Macklem, governor of the Bank of Canada, and Carolyn Rogers, senior deputy governor, hold a press conference at the Bank of Canada in Ottawa on Wednesday, Oct. 29, 2025. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — The Bank of Canada says it doesn’t know how new artificial intelligence products will affect the Canadian economy.

Bank of Canada Governor Tiff Macklem says the technology has the potential for both economic benefit and harm.

Macklem says AI could have the sort of impact the introduction of computers and the internet did on global commerce and standards of living.

He also says AI could eliminate many existing jobs and sees AI tech being implemented at a faster pace than previous game-changing technologies.

The bank’s new 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 undermining 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.

Justin Escoto, The Canadian Press