AI's impact on productivity remains unclear despite significant investment and technological advancements, with some experts noting its absence in macroeconomic data. While the technology continues to develop, its effects on employment, productivity, and inflation are not yet apparent in the statistics, according to Apollo Chief Economist Torsten Slok. This mirrors the situation during the PC revolution, where the technology's impact wasn't immediately reflected in productivity figures, as noted by economist Robert Solow.
The "J-curve" concept, which suggests that general-purpose technologies initially require massive investment before productivity gains become evident, is central to the current debate. Some experts believe that AI is currently in this initial investment phase, potentially obscuring early gains before a period of significant productivity growth. However, the lack of clear evidence in macroeconomic data has led to skepticism. Slok observed that profit margins and earnings forecasts for S&P 500 companies, excluding the "Magnificent 7," also lack evidence of AI's impact.
The development of AI is ongoing, with companies like Nvidia and Groq competing in the race to real-time AI solutions. The potential for AI to enhance labor in some sectors rather than replace workers in all sectors is also being considered.
In other news, a solo developer has been working on a real-time notes app called Lightwave for over three and a half years. The app, built with hand-rolled JavaScript and using technologies like Laravel, MySQL, Redis, and HTTP2 POST for real-time collaboration, is currently in a pre-release stress test phase. The developer plans to launch Lightwave as a paid product.
Discussion
AI Experts & Community
Be the first to comment