The newest versions of generative AI are bedazzling, with lifelike videos, seemingly expert-sounding prose, and other all too humanlike behaviors. Business leaders are fretting over how to reinvent their companies as billions flow into startups, and the big AI companies are creating ever more powerful models. Predictions abound on how ChatGPT and the growing list of large language models will transform the way we work and organize our lives, providing instant advice on everything from financial investments to where to spend your next vacation and how to get there.

But for economists, the most critical question around our obsession with AI is how the fledgling technology will (or won’t) boost overall productivity, and if it does, how long it will take. Think of it as the bottom line to the AI hype machine: Can the technology lead to renewed prosperity after years of stagnant economic growth?

It could. But getting there will take some serious course corrections.

This story was written by editor at large David Rotman and narrated by Noa - newsoveraudio.com.