Bank of Canada warns of automation’s side effects.

Carolyn Wilkins, senior deputy governor of the Bank of Canada says that while the country’s poised to reap economic benefits from technological progress , it must prepare for painful side effects like job losses and greater income inequality.

She said that Innovations like artificial intelligence and robotics are expected to help re-energize underwhelming productivity in advanced economies like Canada.

She highlighted how experts predict changes like automation to have downsides, which could include impacts on close to half of all jobs in some industrialized countries within 20 years.

She said that for Canada to get the most from these changes, it must address these concerns.

Wilkins has shared that the Bank of Canada has also taken steps to help it deal with the fast-approaching changes. It has created a new digital economy team with a focus on how automation affects the economy as well as its impacts on inflation and monetary policy.