Firms predict an AI productivity boom is coming

Source Domain: cepr.org

Increasing interest in AI’s economic impact has led to a wealth of data from various sources, but lacks a high-quality, internationally representative survey from senior executives.
Survey data from over 5,000 CFOs, CEOs, and executives across the US, UK, Germany, and Australia reveals that majority of businesses use AI technologies with varying adoption rates.
AI use is highest in the U.S. (78%) followed by the UK (71%), Germany (65%), and Australia (59%).
75% of firms anticipate adopting AI technologies over the next three years.
Current AI adoption is higher in more productive, larger, and higher-paying firms, but lower in firms with older directors and older establishments.
In past three years, companies report minimal impact of AI on employment but expect a 0.7% reduction in employment and a 1.4% rise in productivity due to AI over the next three years.
Most significant projected employment impact is expected in the UK (-1.4%) due to more regulated labour markets, and productivity impact is larger in the US (+2.3%) and UK (+1.9%).
There is significant disparity between executives’ and employees’ expectations, with employees being more optimistic about the positive employment impacts of AI.
Conclusion highlights ongoing monitoring of AI adoption and its effects while emphasizing the importance of consistent and aligned survey methodologies for comparative cross-country results.

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