Nobel Economists Warn: AI's Productivity Payoff Falls Far Short of the Hype
Pissarides said AI may lift output, but he sees no sign it will deliver the productivity surge needed to revive fast growth.
- On Monday, Nobel Prize-winning London School of Economics professor Christopher Pissarides warned that artificial intelligence will likely fail to restore rapid Western economic growth, cautioning that fast productivity gains may be over.
- Tech industry leaders, including Nvidia's Jensen Huang and OpenAI's Sam Altman, have pinned hopes on AI reviving growth, but Pissarides questioned whether the technology can replicate the personal-computing boom of the late 20th century.
- Pissarides noted that up to 40 per cent of jobs, particularly in nursing and hospitality, remain unexposed to AI, limiting potential productivity gains across key economic sectors.
- Bank of England Governor Andrew Bailey remains more optimistic, suggesting AI may "ride to the rescue," though he acknowledged it will take time for the technology to feed through into growth figures.
- Sceptics draw comparisons to the dot-com bubble, warning that tools often churn out corporate "workslop" rather than genuine output, leaving many firms yet to see measurable returns from AI spending.
13 Articles
13 Articles
A Nobel Prize winner for Economics anticipates that artificial intelligence (AI) will not bring Western economies back to the fast-growing era of productivity, which may have disappeared forever.
Nobel Economists Warn: AI's Productivity Payoff Falls Far Short of the Hype
Christopher Pissarides doesn’t mince words. The 2010 Nobel laureate in economics sees artificial intelligence as useful in spots. Yet he dismisses any notion it will spark the sort of rapid productivity surge that powered economies in the 1980s and 1990s. “It’s just not practical to talk about high productivity growth,” Pissarides told The Next Web. “I think we should be resigned to the fact that the days of fast productivity growth are over, wh…
AI won’t restore an era of rapid growth, says Nobel laureate Christopher Pissarides
Nobel Prize-winning economist has poured cold water on the idea that artificial intelligence will haul Western economies back into an era of rapid productivity growth, warning that the fast-growth years may already be gone for good. Christopher Pissarides, who shared the 2010 Nobel Memorial Prize in economics and teaches at the London School of Economics, […] This story continues at The Next Web
AI won't revive rapid productivity growth, Nobel economist Christopher Pissarides warns
The Nobel laureate says AI will leave many jobs largely untouched, arguing productivity gains are unlikely to match the technology boom that transformed economies in the 1980s and 1990s.
Coverage Details
Bias Distribution
- 43% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
