Will AI Be a Boon or Bane for U.S. Economic Growth?
The rapid rise of Artificial Intelligence (AI) presents a paradox for the U.S. economy: while it has the potential to drive significant growth through capital investments and productivity enhancements, it also poses a risk of substantial job cuts. As businesses increasingly adopt AI technologies, the immediate benefits remain elusive, with a staggering 95% of companies reporting no tangible gains from their generative AI initiatives, according to recent MIT research.
This duality of AI’s impact raises critical questions about the future of work and economic stability. As we look ahead to 2026, the balance between AI-driven growth and job displacement will be pivotal in shaping U.S. consumption patterns and overall economic health. Without a major breakthrough in AI capabilities or supportive policies from Washington, the forecasted GDP growth of 1.7% may fall short of expectations.
As we navigate this complex landscape, how can we ensure that AI serves as a tool for economic empowerment rather than a catalyst for job loss? The answer will define our economic future and the role of technology in society.
Original source: https://www.cfr.org/article/will-artificial-intelligence-do-more-harm-good-us-growth