Peter McCrory

It's a privilege to be here and so glad to be able to share this work with the world and all the underlying data, which I mean, I'll talk about, but everything that we do is based on open source data.

So we hope that others will join us in making sense of what's on the horizon.

That's a really great question.

And I think of this in one of two ways.

One, broadly speaking, the usage patterns on cloud.ai, which is this chatbot interaction, do

at a high level look very similar to the API deployment.

So dominant usage for coding related tasks, as well as sort of the other overrepresented categories.

with a little bit more tilt toward programmatic deployment when businesses choose to embed Cloud's capabilities.

So high level, I tend to see these as both capturing where are capabilities strongest and where are they providing economic value, whether that's through sort of iterative back and forth with a user through the chat window or through

the API deployment.

But to your point, so much of the, and this is a point that we made in our last report, is so much of the labor market and productivity implications of this technology, much like past technologies, will hinge on how businesses choose to embed and deploy the tool.

And so the sharp increase, relative increase in automated use, where

Claude has given a straightforward directive and expected to produce an output that feeds directly into a service that's provided to a consumer or some internal business operation is where I think the productivity effects will begin to materialize.

This sort of matches sort of the historical pattern of general purpose technologies where businesses need to figure out how to maybe even embed the capability in invisible ways.

So the analogy that I use

is with electricity.

When I go to a coffee shop and I order a latte, I don't often think, except in this conversation, don't often think about the power of the electricity that's required to provide this service.

That general purpose technology is invisible to me.

And it will take time for businesses to figure out

what those use cases are, the cloud.ai usage patterns might be an early window into what's on the horizon.