The Governor of the Bank of Canada, Tiff Macklem, has highlighted the potential duality of artificial intelligence (AI) on the Canadian economy. On October 29, 2025, Macklem provided a remarkable statement of vision concerning AI. He warned that its transformative potential would be just as profound as that of computers and the internet on world commerce and standards of living. His remarks came as the bank released its new quarterly monetary policy report. The report dives into the ways AI shortens or lengthens economic growth, and the force and type of investment it generates.
Macklem was keen to point out that, despite the significant benefits AI could bring to Canada, there are still risks that need to be managed. He stressed the reality that new technologies have a history of profoundly shifting productivity dynamics and economic structures. This transformation could create both winners and losers within various sectors of the economy as businesses adapt to new technologies.
This is a strong signal the United States has already reaped significant benefits from AI investments this year. Stock prices for companies and contractors associated with artificial intelligence technology have skyrocketed. This just goes to show the potential economic benefits that innovation in this field can have. The report urges Canada to make moves before the crisis worsens. By adopting the transformative use of AI, Canada could compete with its richer neighbor to the south.
Macklem’s comments are a testament to the increasing acknowledgment of AI’s central role in creating our future economic landscapes. He indeed told Canadian policymakers and industry to adapt to disruptive AI advancements. He emphasized the importance of safeguarding against ensuing chaos. He stressed the need for investment in education and training programs. Together, these initiatives will help our current and future workforce develop the skills they need to prosper in an AI-powered economy.
The release of the monetary policy report at 1:15 pm on October 29, 2025, marks a significant moment for economic discourse in Canada. The country is still coming to terms with what AI means. Macklem’s remarks underscore that we are fundamentally challenged to take a long-term, nimble approach in order to smartly embrace and leverage these new technologies.
