The Limits of AI in Productivity Growth

AI has the potential to revolutionize productivity, but historical precedents suggest that technological advancements usually lead to growth more slowly than anticipated. Professor Diane Coyle emphasizes that, although AI could eventually enhance productivity, it might take a decade before significant measurable impacts are visible. She draws comparisons to electricity, which required extensive infrastructure investments before its effects on productivity were felt. This suggests that the quick-fix narratives surrounding AI could lead to disillusionment if expectations are not tempered.