The American economy accelerated nicely in the middle of last year. A Two Percent Economy no more! Well, at least for a bit. Economic growth now seems to be reverting to the humdrum pace seen over most of the post-Financial Crisis recovery. (The Trump White House, it should be noted, sees things more optimistically.) The combo of slower labor force growth and productivity growth means the economy’s growth potential isn’t what it once was.
But maybe artificial intelligence can accelerate economic growth on a sustained basis by boosting productivity growth. In their 2018 paper, “AI and the Economy,” economists Jason Furman and Robert Seamans point out that many experts think “AI and other forms of advanced automation, including robots and sensors, can be thought of as a general purpose technology that enable lots of follow-on innovation that ultimately leads to productivity growth.”More