Productivity's false allure
"… fully embracing the technology will boost productivity by 1.5 percent a year …"
What does that mean, and from whence does the estimate of the benefit arise?
According to www.investopedia.com -
Productivity measures output per unit of input.
Economists see productivity growth as essential for gains in wages, corporate profits, and living standards.
The calculation for productivity is output by a company divided by the units used to generate that output.
Productivity in the workplace refers simply to how much work is done over a specific time period.
AND
Economic productivity is calculated as a ratio of gross domestic product (GDP) to hours worked. Labour productivity is analysed by sector to identify trends in job growth, wages, and technological advances.
Productivity — regardless of whether the concept is applied to an individual enterprise or to a national economy — refers to a limited range of human activities. Moreover, it may not be assumed that increases of 'productivity', in either sense, improve the quality of life for the generality of people.
However, the term is powerful in the hands of one-dimensional thinkers such as executive politicians and of the financial interests owning them.
Whilst not seeking to knock AI per se, there is no convincing relationship yet established between the use of AI and the capacity for production of tangible goods and services. Indeed, some believe AI, carelessly used, will have business 'externalities' deleterious to populations as a whole. The drive for profit maximisation, the mantra of business schools, already leads to conveniently ignored externalities.
For 'intangibles', these being most of the output from financial centres such as the City of London, AI will be as seductive as 'derivatives', 'rehypothecation', and instability-inducing algorithmic trading. Indeed, the last-mentioned seems well suited for delegation to AIs. Ironically, a tranche of grossly overpaid 'traders' and 'analysts' will be put out to grass: the small fry of Neo-Liberal financialisation will discover their true station in life.