Unpacking the AI-Productivity Paradox

Technology expectations and economic statistics are clashing for now -- but the reality is more promising than it appears. We see the effects of transformative new technologies everywhere except in productivity statistics. Systems using artificial intelligence (AI) increasingly match or surpass human-level performance, driving great expectations and soaring stock prices. Yet measured productivity growth has declined by half over the past decade, and real income has stagnated since the late 1990s for a majority of Americans. What can explain this paradox?