FT podcast asks why AI has not yet lifted productivity

In short: A new Financial Times podcast episode looks at why AI has not yet boosted productivity for most economies, and why some executives think that may change.

What's going on

Productivity, meaning how much work gets done for each hour of effort, has been weak in many rich countries for about 15 years. People have blamed several things, including weak customer demand, limited competition, and not enough new ideas.

In an episode of The Economics Show with Soumaya Keynes, the FT explores whether artificial intelligence could reverse this trend. The guest is Nick Bloom, an economics professor at Stanford, who discusses why some company leaders, including CFOs and CEOs, now expect AI to increase output.

A key point is that AI tools do not automatically raise productivity just because they exist. Companies often need time to change how people work, train staff, and adjust processes. It can be like buying a faster oven and then realizing you still need to rewrite the recipe and reorganize the kitchen to get meals out quicker.

The episode also raises questions about who benefits most. One open issue is whether productivity gains will be spread widely across many companies, or concentrated among a smaller number of firms that can invest more and adopt AI faster.

What to watch

More evidence will matter than predictions. Watch for clearer measurements of time saved and output gained inside real workplaces, and whether those gains show up in national statistics. The discussion also touches on remote work, and suggests it may improve labor output, and could affect family decisions like fertility rates.

Source: Financial Times