Macro Markets and Machines_The Economic and Market Transformation Driven by AI_GWM report - Flipbook - Page 50
Macro, Markets, and Machines
November 2025
Box 1: The Policy Playbook
A. Smooth the Transition
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Modernize employment insurance with broader coverage, agile triggers, and return-to-work supports.
•
Sharpen evidence-based active labour policies with targeted reskilling, faster matching, and relocation
supports, codesigned with unions and employers.
•
Foster lifelong learning via portable accounts and clear skills pathways.
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Start early by embedding digital and AI fluency and critical judgment in K to 12 and postsecondary education.
•
Avoid new labour market distortions by protecting workers and transitions, not specific jobs, and preserving
flexible reallocation across sectors and geographies.
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Establish early warning signals and policy triggers for displacement risk – for example, a labour
displacement index.
B. Tilt Toward Complementarity and Diffusion
•
Rebuild the capital base by lifting investment in tangible and intangible assets with predictable incentives,
faster approvals, regulatory certainty, and clear long-term signals.
•
Build reliable AI infrastructure by expanding clean and firm power, upgrading grids and connectivity, securing
critical inputs, and protecting affordability while advancing climate goals.
•
Invest in human and organizational capital with incentives for skills, better management and workflows, data
engineering, and evaluation and safety, anchored by simple workforce plans.
•
Enable SME adoption with accessible policies that reflect SME constraints – for example, shared advisory
services, sandboxes, and time-limited training or audit vouchers.
•
Create test-and-scale pathways so firms can trial, evaluate, and expand proven AI uses with time-limited
support and rapid stop-go reviews.
•
Keep AI as a means by anchoring policy to productivity, growth, and welfare, and not losing sight of the
broader reform agenda.
C. Protect an Evolving Tax Base
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Strengthen automatic stabilizers with clear triggers so support scales quickly in sector or regional shocks.
•
Preserve work incentives by lowering the marginal effective tax rate; smoothing tapers, including second
earners; and expanding work-enabling supports, including new AI-driven tools that could boost participation
of marginalized groups.
•
Fund complements through base broadening rather than higher payroll levies, with rigorous evaluation and
fail-fast policy triggers.
•
Modernize tax administration with digital services, secure real-time data, use prefilled filings, employ simpler
rules, and harness analytics for compliance and policy.
Scotia Wealth Management
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