Generative AI has the characteristics of a General Purpose Technology, a rare technology with the power to transform household and business life, bringing significant economic benefits. We should be excited about its potential to drive productivity growth, but at the same time recognise that it will not mean a quick reversal of the current low trend productivity growth . The experience of previous General Purpose Technologies suggests that benefits at an aggregate
level could take decades to materialise.

Read Rachel Lund’s Generative AI will boost aggregate productivity, but maybe not for a few decades.