The AI Productivity Paradox: Why Aren't We Seeing Economic Growth?
2025-01-04
Despite rapid advancements in AI, economic productivity hasn't seen a corresponding surge, contrasting with the impact of previous technological leaps like the internet. The article argues that productivity in the knowledge economy is difficult to measure, with humans tending towards 'satisficing' rather than maximizing output. AI and other technologies are primarily used as human augmentation tools, not productivity multipliers. The 'human-in-the-loop' model currently limits AI autonomy, but the future will see AI gain more independence and contextual understanding, potentially breaking the current productivity growth bottleneck.
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