Comment Gemini can you respond for me? (Score 2) 9
AI disclosure: I used AI to help organize and edit these thoughts. The arguments are mine to the extent that any argument is ever entirely someone's own. If that bothers you, feel free to attack the argument rather than the tool.
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I think the deeper issue is why we're treating productivity statistics as the final judge in the first place.
Productivity is not a direct measurement of economic value. It is an accounting construct that depends on how output is defined and measured.
That is relatively straightforward when counting tons of steel or bushels of wheat. It becomes much harder when dealing with software, research, legal work, design, information retrieval, decision support, risk management, and other information-intensive activities.
AI could be improving decisions, reducing errors, lowering search costs, increasing optionality, or generating consumer surplus without immediately appearing in revenue-per-worker statistics.
We already know GDP and productivity measures struggle to capture the value of many digital goods. Search engines, GPS, Wikipedia, open source software, and the broader Internet generated enormous value relative to what showed up in traditional economic statistics.
There is also a timing problem. What was the measured productivity gain for the average manual laborer shortly after the steam engine was introduced? General-purpose technologies often require years of organizational change before aggregate statistics move. Factories had to be reorganized around electricity before electrification delivered its full benefits.
The argument also seems oddly selective. Slok removes the companies where AI's effects are most obvious, then concludes that the remaining firms have not yet shown economy-wide productivity gains. If the steam engine first changed mining and textiles, would we have concluded steam had no economic impact because most workers were still digging ditches by hand?
Most importantly, why assume productivity is the metric that matters? A technology can create value by reducing uncertainty, improving coordination, avoiding mistakes, increasing resilience, or expanding opportunities. Those benefits do not necessarily show up as higher output per worker.
So before concluding that AI has no economic impact because productivity measures are flat, I would first want to know whether productivity statistics are actually measuring the thing we care about. Flat productivity could mean AI is useless. It could also mean the metric is only observing a subset of the effects.