The Economist pose the valid question on the breadth and staying power of corporate investment in AI and the resultant productivity gains.

LinkEconomist

Yet it is not just tech firms that are thriving. The ai boom has coincided with a broader recovery in stockmarkets, which were battered last year by a combination of high inflation and rising rates. The s&p 500 is up by 8% since Chatgpt was launched, and has risen almost 20% from its October low. This prompts a question. Just how much of the rally is explained by ai enthusiasm?

Summary

During the firm’s earnings call representatives suggested that booming growth in income from data-centre chips would lift total revenues in the second quarter to $11bn, double their level in the previous year.

On the other hand, investors have been known to get overexcited about novel technologies. The internet made a new generation of companies (and their bumper profits) possible. It set off a wave of productivity improvements for economies around the world.

Tags #AI #productivity #Economist