AI isn’t making us more productive
At some point there has to be an “emperor has no clothes” moment. Why, when we are in the middle of a boom in Artificial Intelligence, which is supposed to transform the way we do nearly everything, is there no tangible increase in productivity across the economy? Surely, if the claims for AI were even nearly true it would by now be showing up in the statistics for Total Factor Productivity (TFP) published by the San Francisco Fed. TPF is a measure of output relative to input from labour and capital; a measure, in other words, of how efficiently workers are using the tools available to them. In theory, it should be increasing dramatically with AI as workers use it to speed up tasks and get more out of their day. Trouble is, that does not appear to be happening.