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Can AI Kick-Start Productivity?

Can AI Kick-Start Productivity?

Artificial intelligence (AI) has been adopted at a faster pace than personal computers or even the internet, and we believe there is only acceleration ahead for this game-changing innovation. This is important because AI adoption can increase productivity, which for the last fifteen years has lagged its long-term average.

Higher productivity in turn can lead to higher gross domestic product (GDP) through greater business investment as more and more U.S. companies adopt AI to keep up with their peers. Therefore, AI is one of the reasons why we expect U.S. growth to outpace other developed countries again this year.

 

Not only do we expect AI to enhance U.S. GDP, but we also anticipate the technology will help drive equity gains. AI is helping companies improve corporate margins and profitability, and we see gains extending beyond big technology companies to other industries embracing AI. We remain optimistic that investment in and adoption of AI will be positive for both productivity and growth, supporting U.S. equities this year. 

 

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