AI Job Displacement Looms, but TD Report Finds No Widespread Evidence

A new TD Economics report has shed light on the potential for an AI 'job apocalypse' in Canada. The analysis suggests that while AI is changing the way many employees and companies work, there is still a critical need for human beings to use these tools and provide their judgment.

The study found that a large-scale, AI-driven 'job apocalypse' requires several conditions to align simultaneously, including capability, cost, and speed. Currently, evidence suggests that those conditions have yet to materialize, particularly in the US, which TD calls a frontier for artificial intelligence adoption.

In the most exposed US occupations, employment growth has slowed from nearly 9% in 2022 to close to zero, based on Stanford Digital Economy Lab and ADP Research data. However, hiring has also increased over last year by 25%, so while AI is shifting the labor market, it is not dismantling it.

In Canada, a Statistics Canada survey from the second quarter of 2025 found that among businesses using AI, 89.4% reported no change in employment after implementation and 38.9% trained staff to use it.