Future Tense The truth about AI and productivity
Aug 7, 2025
In this insightful discussion, Jon Whittle, Director at CSIRO, unveils the complexities of AI and its real impact on productivity. Jovan Kurbalija from the Diplo Foundation introduces 'Magic Realism' as a novel approach to AI regulation, emphasizing the importance of balancing creativity with governance. Andreas Schleicher, from the OECD, highlights alarming declines in literacy and problem-solving skills, raising concerns about technology's role in widening skill disparities. Together, they navigate the intertwined futures of technology, education, and societal evolution.
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Mixed Individual Productivity with AI
- Individual productivity gains from AI are mixed and depend on how effectively users leverage the technology.
- Simple uses like email writing are common, but higher returns require significant learning and targeted application.
Organizational AI Productivity Challenges
- Organizational AI adoption has variable success and often faces social, cultural, and structural challenges.
- Gains in one area may increase workloads elsewhere, and AI speed-ups often result in more work, not freed time.
Four Reasons to Apply AI
- When applying AI, consider productivity, cost reduction, customer value, and potential business model disruption.
- Focus beyond just speeding things up to derive more meaningful organizational benefits.
