By Promit Mukherjee and David Ljunggren/ParagraphParagraph xml:space="preserve" OTTAWA, May 13 (Reuters) - The Bank of Canada on Wednesday said there were no signs so far that artificial intelligence was leading ​to widespread job losses, adding the technology had the potential to ‌transform tasks rather than eliminate them./ParagraphParagraph xml:space="preserve" Deputy Governor Michelle Alexopoulos said the central bank was closely monitoring the employment market and anticipated that as AI becomes more prevalent, some jobs would be ​replaced and new ones would emerge./ParagraphParagraph xml:space="preserve" "But, broadly speaking, the evidence does ​not yet point to widespread worker displacement because of AI," she told ⁠a business audience in Ottawa. /ParagraphParagraph xml:space="preserve" As technology companies funnel billions of dollars to ​support AI growth, experts variously predict this will lead to massive productivity gains or ​huge job losses. /ParagraphParagraph xml:space="preserve" "We are starting to see evidence of small productivity gains from AI," Alexopoulos said, adding the BoC was incorporating limited gains into its projections and estimates of potential output./ParagraphParagraph ​xml:space="preserve" The bank's most recent survey of senior experts in risk management in the financial ​sector showed many see AI as a tool to support decision-making, while still keeping humans very ‌much ⁠in charge, she said./ParagraphParagraph xml:space="preserve" "This reinforces the view that AI will mostly transform jobs - not eliminate them," she added./ParagraphParagraph xml:space="preserve" Talking specifically about Canada, she said as an aging population retires out of the workforce, labor shortages would likely speed up the development ​of new ways to ​use AI. /ParagraphParagraph xml:space="preserve" Alexopoulos ⁠said it was not yet clear whether AI use would spread across the entire economy or be focused on certain sectors ​or tasks./ParagraphParagraph xml:space="preserve" As AI is incorporated more in workplaces and ​businesses, it ⁠could boost efficiency in the production of goods and delivery of services. /ParagraphParagraph xml:space="preserve" "Stronger productivity will make businesses more competitive, leading to higher wages for workers, cost savings for consumers ⁠and less ​pressure on inflation," she said./ParagraphParagraph xml:space="preserve" Governor Tiff Macklem ​said in 2024 that adoption of AI by businesses could add to price pressures in the short terms ​and productivity growth in the long term./ParagraphParagraph xml:space="preserve" ((Reuters Ottawa bureau)) Keywords: CANADA CENBANK//ParagraphParagraph xml:space="preserve"