The benefits of artificial intelligence are beginning to appear in Canada's economic and productivity data, but the technology also brings risks and challenges, according to Michelle Alexopoulos, an external deputy governor of the Bank of Canada, speaking at a conference in Ottawa this week.
AI Adoption and Productivity Gains
In a speech at the Canadian Association of Business Economics' 2026 Spring Policy Conference on Wednesday, Alexopoulos noted that while AI use is currently concentrated in sectors like finance and insurance, the central bank is seeing evidence of small productivity gains from the technology.
The Bank of Canada's first-quarter Canadian Survey on Consumer Expectations found that more than 30% of respondents use AI to generate and edit content at work, while nearly 25% use it for data analysis, coding, or research. A little over 20% said they use AI to automate tasks.
The central bank's Financial Systems Survey, which polls risk management experts in the financial sector, also found AI being used to automate routine tasks, freeing workers to focus on higher-value activities.
Economic Implications
“To put it simply, the Bank of Canada cares about AI because of its potential to significantly affect productivity, economic growth, employment and inflation,” Alexopoulos said. “When productivity improves, living standards rise.”
Any improvement in productivity would be welcome. Canada's productivity has lagged for 25 years, with annual growth falling from 3% in the 1960s and 1970s to about 1% between 2000 and 2019.
Business labour productivity—measuring goods and services produced per hour worked—rose 1.1% year-over-year in 2025, according to Statistics Canada. In contrast, U.S. productivity increased 2.9% year-over-year in the first quarter of 2026, per the U.S. Bureau of Labour Statistics.
Central Bank's Perspective
The Bank of Canada has been studying AI's economic effects for some time. In September 2024, Governor Tiff Macklem noted broad enthusiasm for AI and uncertainty about its development. Since then, adoption has accelerated. Statistics Canada data from 2025 shows 12% of Canadian businesses using AI, up from 3% in 2022.
On May 4, Macklem told a House of Commons finance committee that the central bank sees AI adoption as a tailwind for productivity. “We have revised up our outlook for productivity growth a bit going forward relative to what we had (in January). The economy is working through an adjustment to higher U.S. tariffs that will temporarily depress productivity growth, and then it comes back,” he said.
