The Productivity Paradox

The current AI paradigm is going through what I’ve defined as The Productivity Paradox:

Or better explained by Robert Solow: “You can see the computer age everywhere but in the productivity statistics.”

Well, indeed, you can already start to see AI everywhere, but it is hard to quantify.

A key thing to understand here, as we’re in the first cycle, is that as most of the capital is actually going after the infrastructure to enable a whole ecosystem, the economic effects will be less evident in terms of added output and much harder to quantify.

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