"Although companies are spending hundreds of billions of dollars in a race to fully capture the benefits
of artificial intelligence, the history of technological advancements argues for caution in estimating how
quickly and effectively this investment will pay off. If the anticipated AI-driven productivity gains fail to
materialize in the next couple of years, the U.S. could face more inflation, labor challenges,
and reduced economic activity."
"That leaves productivity growth to do the heavy lifting.
Yet the Congressional Budget Office projects that annual productivity gains will average just 1.3% through
the end of the decade. As a result, most economists expect U.S. GDP growth to fall in coming years below
the 2% rate considered healthy for advanced economies. Economists surveyed by FactSet expect
the economy to grow by 1.8% in 2026 and 1.9% in 2027."
"Slowing productivity growth, together with growing government obligations, could force policymakers to make
difficult decisions around taxation, public spending, and entitlement outlays, Vanguard’s Schickling says."
https://www.msn.com/en-us/money/markets/u-s-productivity-is-about-to-slump-why-ai-won-t-come-to-the-rescue/ar-AA1RsLdg
