AI and economies: from capex boom to productivity payoff

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AI and economies: from capex boom to productivity payoff

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The AI hype cycle shows no sign of slowing. But how much are the hundreds of billions in investment actually boosting economies, and when will that spending translate into meaningful productivity gains?

In this episode, Senior Economic Adviser Vicky Redwood discusses her new report, 'How deeply is AI taking hold in the economy?', the latest addition to Capital Economics’ analysis of AI’s global impact. In conversation with David Wilder, she separates hype from reality, covering:

Which economies are benefiting most from the global AI build-out
Why recent US productivity gains are evidence of AI’s impact
If the conflict in the Middle East could disrupt the AI rollout
Whether fears of an AI-driven jobs apocalypse are justified
What the Citrini note gets wrong about AI’s macro impact

Read 'How deeply is AI taking hold in the economy?': https://www.capitaleconomics.com/publications/global-economics-focus/how-deeply-ai-taking-hold-economy

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