Where's the AI productivity jump?

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Where is the productivity jump with AI?

David Brancaccio 0:01
Where's the productivity, Artie? Artie as in Artificial Intelligence. I'm David Brancaccio in Los Angeles. Are we getting more done using all this new AI? Corporate leaders say not especially. That's according to a new study from the National Bureau of Economic Research. Where's the productivity jump? Daniel Ackerman reports.
Daniel Ackerman 0:22
Researchers asked executives at nearly 6,000 companies how generative AI has affected their productivity and employment. And 80% of the time?
Gregory Thwaites 0:31
The answer was that neither of those things seems to have changed much yet.
Daniel Ackerman 0:35
Gregory Thwaites is an economist at the University of Nottingham, who co-authored the study.
Gregory Thwaites 0:40
But the answer is very much yet, because they're expecting a bigger effect over the next three years than over the past three years.
Daniel Ackerman 0:47
That expectation could be because the technology is improving so quickly, something Lindsay Raymond, an economist at MIT, says she sees firsthand.
Lindsay Raymond 0:56
So I write a lot of code, do a lot of analysis, and just the coding aid and capability, there was like this dramatic shift kind of over the holidays.
Daniel Ackerman 1:06
The holidays as in December, less than two months ago.
Lindsay Raymond 1:09
At least I feel like I'm getting more productive.
Daniel Ackerman 1:12
And even if the technology fails to live up to the hype more broadly, Raymond says the mere possibility could affect company staffing decisions.
Lindsay Raymond 1:20
They are probably anticipating there will be impacts of AI on productivity and thus in anticipation may slow down their hiring.
Daniel Ackerman 1:28
For most companies today, AI may be reshaping expectations faster than it's reshaping their actual productivity. I'm Daniel Ackerman for Marketplace.
David Brancaccio 1:38
There's new evidence AI is thwarting the aspirations of students who had wanted to study tech disciplines, once seen as a strong bet for finding work.

How have executives responded to AI's impact on productivity?

David Brancaccio 1:47
According to the National Student Clearinghouse Research Center, the number of students enrolling in computer and information science programs decreased this past fall. That's at both the graduate and undergraduate levels. It's the first drop since the first pandemic year. Our program Marketplace Tech spoke to Carrie George with the Computer Research Association.
Carrie George 2:07
We're seeing overall that declines in enrollment across computing, but that's not evenly distributed across sub-disciplines. So we see that some areas such as computer science, software engineering, and information systems see lower enrollments where there are other sub-disciplines, namely computer engineering, data science, cybersecurity, and artificial intelligence that are seeing stability and in some cases, a lot of growth in their enrollment as well. What our department chairs are telling us is that students are very aware of the job market and aware of these forces with AI and the labor market. And they're trying to make choices that are going to best prepare them for life after graduation.
David Brancaccio 2:45
Marketplace Tech has that conversation via marketplace.org now. Now, when you order Buffalo Wild Wings boneless wings, do you expect them to actually be chicken wings with the bone taken out? A guy in Illinois sued saying he was deceived when he learned boneless wings can be akin to chicken nuggets. But a judge has now ruled he didn't drum up enough of an argument. The judge himself used the words drum up better than legally winging it, I suppose.
David Brancaccio 3:28
Time to check the marketplace economic pulse views on the economy from a range of perspectives. Tariffs, strict border policy, persistently high interest rates. Maurice Rahming, president of O'Neill Construction Group in Portland, Oregon, sees it all. He does subcontracting, often electrical, for commercial building projects. Mr. Rahming, welcome back. Thank you for having me, David. All right, just as a baseline here, how's it feeling to you in your line of work? Is it busier? Is it quieter? What are you seeing?
Maurice Rahming 3:56
It's a lot slower. There's a little bit more volatility. Some markets are just really, really slow and not going at all. Some are picking up and then slowing down, but we've definitely seen a slowdown.
David Brancaccio 4:07
So what's your sense of why a little slower from your perspective?

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