On the one hand, we have the promise of potentially serious increases in national productivity with AI. Lots of hurdles and questions but the size of the prize is large.
On the other hand, we have a huge pig in the productivity python in terms of inflation, high interest rates and misallocation of capital owing to misguided industrial policy. All of which will drag down productivity
It may be a close run thing whether the potential productivity gains from AI are sufficient to outweigh the loss of productivity owing to inflation, interest rates, and wasted capital from misallocation.
No comments:
Post a Comment