October 29, 2025
RED FM News Desk
The Bank of Canada says it’s uncertain how the rise of new artificial intelligence technologies will ultimately affect the country’s economy.
Governor Tiff Macklem acknowledged that AI has the potential to bring both economic gains and risks. He compared its possible influence to the transformative effects that computers and the internet once had on global trade and living standards.
Macklem also cautioned that AI could displace many current jobs and noted that its adoption appears to be happening much faster than previous major technological shifts.
In its latest monetary policy report, the Bank highlighted that the U.S. economy has so far benefited from heavy AI investment and soaring stock prices for tech companies linked to the sector.
However, it warned that if expectations for AI’s performance were suddenly reassessed, stock markets could face a sharp correction — a scenario that might weaken consumer confidence in both the U.S. and Canada and trigger a broader economic slowdown.
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