Bank of Canada Warns AI Could Impact Inflation and Jobs

Governor Tiff Macklem highlights uncertainties around AI's economic effects and calls for cautious approach.

Bank of Canada Governor Tiff Macklem expressed concerns about AI's potential to destroy more jobs than it creates.
Macklem noted that while AI could boost labor productivity and living standards, it might also contribute to short-term inflationary pressures.
The central bank is using AI to forecast inflation and track economic sentiment but is still in the early stages of adoption.
Macklem emphasized the need for more research and collaboration between academics and businesses to understand AI's full impact.
Canada has launched a Voluntary Code of Conduct for the responsible development and management of generative AI systems.