Oles in the News: Professor weighs in on whether AI is contributing to the national GDP
Assistant Professor of Economics Ethan Struby at St. Olaf College was recently featured in Marketplace on the growing role of artificial intelligence (AI) investment in the economy.
In the article, the Bureau of Economic Analysis reported that “the U.S. economy grew at an annualized rate of 2.2 percent in the second quarter, an upward revision from the previous estimate of 1.5 percent.”
Struby provided expert insight on how the rapid expansion of artificial intelligence infrastructure is contributing to gross domestic product (GDP) growth. He explained that companies are building data centers, expanding utility transmission, and constructing on-site power generation to support the growing demand for AI technology. He also noted that many of the chips and other equipment used in this infrastructure are imported, meaning those imports are subtracted from domestic economic growth.
He also offered perspective on the longer-term economic implications of the AI boom. While companies are investing heavily in AI with the expectation that it will increase productivity, he cautioned that its ultimate impact remains uncertain.
“The IT boom in the 1990s didn’t contribute as much to productivity as you might have expected, given how it seemed like it transformed all of our lives,” he says, drawing comparisons to the dot-com bubble.
Read or listen to the original story at Marketplace.