AI is considered by many to be the factor for increased productivity. However, in a study, many companies state that AI does not bring any real benefits. We are far from the high predictions made a few years ago.
In 2023, MIT researchers claimed that the use of AI could increase an employee’s performance by almost 40% compared to employees who do not use this technology.
However, looking at current surveys and statistics, one must conclude that these claims have not been fulfilled to this day. Many companies even stated that AI had no impact on productivity at all.
Many companies say that AI has no impact on employment or productivity
What does the current situation look like? The National Bureau of Economic Research, a private, nonpartisan non-profit research organization in the U.S., recently published a study in which they surveyed 6,000 CEOs, CFOs, and other executives in various countries about economic developments related to AI.
The results are surprising: The vast majority stated that they see only slight effects of AI on their business activities. Almost 90% of companies reported that AI had no impact on employment or productivity in the last three years, according to the study.
Nevertheless, many companies still have high expectations for AI: Executives predict that AI will increase productivity by 1.4% and output by 0.8% over the next three years. However, this 1.4% is far from the 40% that researchers predicted in 2023.
Another MIT study also predicts a productivity increase of 0.5% for the coming years. In it, the author of the study and Nobel laureate Daron Acemoglu stated:
I think we should not underestimate 0.5% over ten years. It is better than nothing. But given the promises made by the industry and tech journalists, the result is simply disappointing.
We are thus far from the extreme increases that were promised. However, AI already has strong impacts on the daily lives of many people.
It is important to note that the productivity boost can vary significantly depending on profession and department.
- A global study by PwC shows that in industries with strong AI usage (e.g. financial services, software), productivity growth has quadrupled since the spread of GenAI.
- If companies offer AI training and AI is really consistently used in everyday life, then high productivity gains in double digits can be achieved.
- For craftsmen who use AI mainly for paperwork and digitization, the boost is significantly lower.
However, AI is currently having a strong impact on the daily lives of many people. Companies are increasingly relying on AI to lay off employees and save money in this way. AI is currently leading to many job cuts. Layoffs are at their highest level in many years and resemble the financial crisis of 2008: AI was supposed to create many new jobs: Instead, 1.2 million people became unemployed
