"In 1987, economist and Nobel laureate Robert Solow made a stark observation about the stalling evolution of the information age: Following the advent of transistors, microprocessors, integrated circuits, and memory chips of the 1960s, economists and companies expected these new technologies to disrupt workplaces and result in a surge of productivity. Instead, productivity growth slowed, dropping from 2.9% from 1948 to 1973, to 1.1% after 1973."
"New data on how C-suite executives are-or aren't-using AI shows history is repeating itself, complicating the similar promises economists and Big Tech founders made about the technology's impact on the workplace and economy. Despite 374 companies in the S&P 500 mentioning AI in earnings calls-most of which said the technology's implementation in the firm was entirely positive-according to a Financial Times analysis from September 2024 to 2025, those positive adoptions aren't being reflected in broader productivity gains."
Robert Solow observed that after major hardware innovations of the 1960s, productivity growth slowed from 2.9% (1948–1973) to 1.1% after 1973. Early computers often generated excessive information, producing detailed reports that did not boost workplace efficiency. Many companies now promote AI adoption, with 374 S&P 500 firms mentioning AI in earnings calls. A National Bureau of Economic Research study of about 6,000 executives across the U.S., UK, Germany, and Australia found the majority report little operational impact from AI. About two-thirds of executives use AI, averaging roughly 1.5 hours per week, while 25% report no workplace AI use.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]