AI is only "part" of high U.S. productivity growth, says Stripe economist

The U.S. labor productivity surge everyone credits to AI may have a humbler explanation. Per Stripe chief economist Ernie Tedeschi, while productivity has jumped to two point five percent annually — compared with one point six percent over the last twenty years — the real driver isn't artificial intelligence, but better use of existing capital: longer factory runs, fuller server racks, more occupied hotel rooms. Companies are getting more output from assets they already own, not from AI breakthroughs. Tedeschi cautions that understanding where the growth actually comes from is crucial in determining whether AI will eventually deliver the transformational gains many expect.

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