economy
AI is only "part" of high U.S. productivity growth, says Stripe economist
Companies are achieving high productivity output because they're better using existing capital, not making major use of AI, writes Stripe's chief economist.
TL;DR
- U.S. economy-wide productivity has surged in recent years, but AI is not currently the main driver.
- Companies are achieving higher output per person-hour by better utilizing existing capital, not through major AI implementation.
- Labor productivity has increased significantly, but total factor productivity, which includes capital, has seen little change.
- Sectors with high AI adoption show higher productivity growth, but this trend predates the widespread use of advanced AI like large language models.
- The current productivity gains stem from increased 'capital intensity' or 'utilization' of assets already in place.
- AI is likely to play a role in future productivity growth, but its exact contribution and persistence are still being assessed.