Bot the difference: AI’s absence in economic data

The podcast examines the productivity impact of AI on the economy, particularly in light of substantial AI investments made by firms. Despite high adoption rates of AI among workers, productivity gains remain modest, estimated between 0.25 and 0.5 percentage points. This is partly because workers aren't always using AI to its full potential or reallocating saved time to other productive tasks. The discussion highlights that true productivity booms historically occur when firms reorganize their production and adopt new business models around new technologies, referencing electricity and computers as examples. The podcast also covers the escalating violence in Nigeria, where jihadist groups are splintering and spreading southward, closer to urban centers, creating a complex security crisis.