ANEW - AI Productivity Gains May Be Smaller Than You're Expecting
2024-04-13 04:25:00 ET
Summary
- Much is made of Artificial Intelligence’s potential to transform labour markets and make productivity gains.
- But at a macro level, we think those AI productivity gains, while significant, may not be quite so spectacular.
- We believe that AI will indeed lead to a positive productivity shock at the macroeconomic level.
By Charlotte de Montpellier | Inga Fechner
Artificial Intelligence is discussed not only as a potential source of radically transforming labour markets but also as something that could bring about major productivity gains. And not just for specific companies or sectors but for the economy as a whole . According to some, the technology is so revolutionary that it could lead to a positive productivity shock, capable of creating stronger economic growth. So, is this just a sci-fi movie plotline, or could it be an economic reality? Just what sort of productivity gains can we expect from AI at the macroeconomic level?
AI's impact has yet to show in country-level data
Despite the increasing adoption of AI and other technological advancements over the last decade, productivity growth in many developed economies has been relatively slow in recent years. The current absence of a big AI impact on country-level productivity figures does not mean, however, that there will be no impact at all. In fact, it is simply too early for the impact to already be felt in aggregate figures....
AI Productivity Gains May Be Smaller Than You're Expecting