AI Productivity Boost Still Invisible in Data, Fed Officials Skeptical
• Economists doubt AI is visible in productivity data yet, though companies adopt it to improve efficiency • Rapid productivity growth allows companies to pay more without sacrificing profits or raising prices • Fed Chair Jerome Powell and NY Fed President John Williams seem skeptical AI has spread enough to boost productivity yet • Northwestern economist Robert Gordon argues recent tech hasn't been transformative enough to lift productivity growth • Gordon believes enthusiasm for large language models like ChatGPT has gone "overboard"