There will be no immediate productivity boost from AI

By Callum Williams, Senior economics writer, The Economist

Artificial intelligence (AI) has already made many people very rich. Anyone who in 2021 bought shares in Nvidia, which makes ai chips, has by now octupled their money. The firm’s founder, Jensen Huang, has probably made more than $100bn from the share-price surge—and he is not the only one in Silicon Valley sitting on gigantic paper profits. And yet so far, ai has had almost no impact on America’s economy, with unemployment still very low and productivity growth weak. Expect this puzzle to continue in 2025.