Productivity growth not boosted by AI: CBO

View profile for Peter Berezin

Director of Research and Chief Global Strategist, BCA Research

Is AI boosting productivity? At least so far, it’s not visible in the data. Productivity in Q2 was about where the CBO predicted it would be five years ago.

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Mark Moors

Research Associate

1mo

The banking sector has been deploying various forms of AI for some time now, and likely will continue to ramp. Measurement of its productivity s/b embedded in banks' reported "efficiency ratios" following a J-curve. While various factors impact that ratio, one would expect to eventually see AI augment to the downside, i.e. drive improvement in their ERs. https://www.mckinsey.com/industries/financial-services/our-insights/scaling-gen-ai-in-banking-choosing-the-best-operating-model

Five years ago, did the CBO expect new technologies, including AI, to boost productivity in 2Q25?

Janghun Lee, CFA

portfolio management, Client advisory service

1mo

Gracias por compartir, Peter

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Is there an AI diffusion index you know of? That would be of interest - given the proprietary nature of AI and high infrastructural cost of adoption

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