Scott Davis

There is a positive relationship between artificial intelligence exposure and labor productivity growth in U.S. industry. But is AI itself responsible for that growth in the sectors most exposed to it? Because AI use varies across countries, we can draw on international data to investigate the relationship between AI exposure and productivity growth at the sector level. The positive relationship in the U.S. fits a pattern visible among countries and appears related to high AI use. U.S. labor productivity has grown at an annualized rate of 2.4 percent since the beginning of 2024.