
Episode #567
America Is Spending Billions on AI... Where’s the Productivity Payoff?
America is pouring money into artificial intelligence — but the productivity gains have yet to fully show up in the economy. Employers added 162,000 jobs in August and unemployment held at 4.1%, but PhD economist Orphe Divounguy says the latest labor market data look more like a stabilization than a true rebound. Hiring remains weak, real wages are falling, long-term unemployment is rising, and the labor force is nearly a million workers smaller. At the same time, businesses are making massive investments in AI infrastructure. Equipment and intellectual property investment accounted for a significant share of recent economic growth, while construction spending has shifted heavily toward data centers. So where is the payoff? Chris Krug and Orphe Divounguy examine whether AI is actually increasing productivity, why businesses are still figuring out how to use the technology, and what could happen to workers as AI changes the skills employers need. They also compare today's transition to previous technological shifts, including the adoption of electricity. Everyday Economics is hosted by Chris Krug and PhD economist Orphe Divounguy and is brought to you by The Center Square. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

