AI Productivity Boost Remains Elusive
In brief
- Companies are spending big on AI to boost productivity, but results are mixed.
- Some workers, like software engineer Iren Azra Zou, say AI tools like Claude Code help them complete tasks faster.
- Labor productivity has risen in the US since 2020, but researchers say this may not be due to AI.
- In fact, 90% of firms using AI reported no impact on productivity over the prior three years.
- Companies are under pressure to show that their AI spending is worthwhile.
- AI may create more work in the short term, as workers like Amazon data scientist Sarthak Gupta build out new systems and pipelines.
- The future of AI productivity gains will depend on how well companies can scale individual efficiency.
Terms in this brief
- Claude Code
- An AI tool designed to assist software engineers by completing tasks more efficiently. It is part of the broader suite of AI applications aimed at enhancing productivity in various professional fields.
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US Stock Market Rises
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AI Development Needs Public Input
Nearly a billion people use ChatGPT despite AI being unpopular. AI affects many areas of life. It can help or hurt jobs. For example, radiology was predicted to be eliminated by AI, but it is still growing. Experts are unsure how AI will change the economy. They predict 3.1 percent job growth or a 1.4 percent loss by 2035. People need a say in how AI is developed to make it work for them.
Africa's Role in Shaping Artificial Intelligence
Professor Benjamin Rosman says Africans must help shape the future of artificial intelligence. He is one of Africa's leading voices in artificial intelligence research. He thinks AI risks reinforcing existing inequalities if entire regions are absent from the conversation. The Pope's encyclical Magnifica humanitas talks about the importance of including all perspectives in AI discussions. Rosman wants Africa to have a seat at the table where key AI decisions are made. He believes this is a question of agency and responsibility. Africa will likely play a bigger role in AI development in the future.
AI Systems Face New Limitation
AI systems now face a new limitation: electricity. The energy needed to power these systems is becoming a concern. Companies are using more and more energy to run their AI models. This is a problem because it costs a lot of money and can harm the environment. For example, training a single AI model can use as much energy as a car does in 5 years. This new limitation will change how companies plan for AI. They will need to think about how to use energy efficiently. Companies will have to find new ways to power their AI systems.
Investor Compares AI Job Fears to Industrial Revolution
Venture capitalist Bill Gurley said fears about AI eliminating jobs are similar to concerns during the Industrial Revolution. He pointed out that the Industrial Revolution led to a rise in living standards, with the workweek decreasing from over 60 hours to 34 hours globally and real wages increasing 8 to 10 times. Gurley cited specific figures to support his claim, including a decrease in global poverty from roughly 75% to under 10%. He believes that innovation and technology have historically led to more prosperity for humans and sees no reason why AI will be different. Historically, innovation has led to more prosperity for humans, and Gurley expects AI to follow this pattern, leading to more prosperity in the future.