Podzept from Deutsche Bank Research AI’s impact on the economy: A conversation with Tyler Cowen
20 snips
Nov 5, 2025 
Tyler Cowen, a prominent economist and author at George Mason University, discusses the macroeconomic implications of AI. He explores whether an AI bubble exists and forecasts short-run growth through sectoral adoption. Cowen warns about institutional unpreparedness for AI-driven change and addresses labor market transitions, emphasizing the balance between AI skills and foundational education. He also highlights the risks of geopolitical dependence on foreign AI and the imperative for organizations to adapt or risk being left behind.
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Well-Funded AI Frenzy Won't Just Vanish
- AI investment may be a "bubble" for wealthy investors but not a complete collapse like dot-com.
- Major players are so well capitalized they'll fund long-term AI projects despite losses.
Early Gains From Time Saved, Later From New Firms
- Short-run gains come from saved labor time and rapid AI adoption in measurable sectors like programming and finance.
- Long-run growth will accumulate via AI-native startups but will be slow to reshape most sclerotic sectors.
AI Will Reshape Growth Over Decades
- The AI revolution may outpace past industrial transitions but still unfold over decades rather than instantly.
- It can more than offset demographic headwinds long term, though not within a five-year horizon.
