This paper estimates AI’s impact on labor productivity growth, treating AI as both a general-purpose technology and an innovation in the method of innovation. Using a framework that separates upstream innovation from downstream (other) production suggests that AI boosts both upstream total factor productivity and intangible capital use downstream. We find that AI is already materially affecting official productivity measures in the United States. Software products and software R&D contributed 50 percent of the 2 percent average growth rate in nonfarm business labor productivity from 2017 to 2024 and 50 percent of its 1.2 percentage point acceleration compared to 2012–2017.
Bontadini et al. (Fri,) studied this question.