Thousands of CEOs just admitted AI had no impact on employment or productivity

7 days ago

Robert Solow observed a slowdown in productivity growth despite the advent of computers in the 1960s, known as Solow’s productivity paradox.
Recent data shows that despite widespread mentions of AI in corporate earnings calls, productivity gains from AI are not yet evident.
A study found that most executives see little impact from AI on their operations, with only about 1.5 hours of AI usage per week reported.
Expectations for AI’s future impact remain high, with forecasts of productivity increases of 1.4% and output increases of 0.8% over the next three years.
Economists are divided on AI’s current productivity impact, with some studies showing modest gains and others showing none.
Workers’ confidence in AI’s utility has declined, indicating persistent distrust despite increased usage.
IBM plans to triple young hires, suggesting AI’s automation may not replace entry-level roles but could affect future leadership pipelines.
Historical IT productivity booms suggest AI’s impact may follow a delayed 'J-curve,' with initial slowdowns followed by exponential growth.
AI’s future productivity depends on how companies implement and integrate the technology across different sectors.

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