The growing impact of AI in the U.S. economy

About this episode

The episode discusses the nuanced impact of AI on U.S. productivity and labor markets.

U.S. productivity growth is strong, business investment in information processing and equipment has surged, and headlines about AI replacing jobs are growing louder. But, how much of this is actually attributable to AI and how much is noise? Reality is nuanced. We’re still largely in the building out phase of AI investment, and it’s too soon to say whether AI has led to a structural break in productivity. Fears of widespread job displacement may dominate the narrative, but labor market data tells a different story. In this episode of the 10-Minute Take, RBC U.S. economists Carrie Freestone and Imri Haggin discuss: Whether recent productivity gains can be attributed to adoption of AI or reflect other factors. How AI-related capital spending is influencing business investment. What data shows about AI's impact on jobs, and whether labor displacement is happening.

People in this episode

Host: The 10-Minute Take

Guests: Carrie Freestone, Imri Haggin

Topics covered

• AI impact on economy
• productivity growth
• business investment
• labor market
• job displacement

Keywords

• AI
• productivity
• business investment
• labor market
• job displacement
• economy
• capital spending

Mentioned in this episode

Organizations: RBC

Places: U.S.

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