A new Federal Reserve Board staff paper concludes that generative artificial intelligence (gen AI) holds significant promise for boosting U.S. productivity, but cautions that its widespread economic impact will depend on how quickly and thoroughly firms integrate the technology.
Titled “Generative AI at the Crossroads: Light Bulb, Dynamo, or Microscope?” the paper, authored by Martin Neil Baily, David M. Byrne, Aidan T. Kane, and Paul E. Soto, explores whether gen AI represents a fleeting innovation or a groundbreaking force akin to past general-purpose technologies (GPTs) such as electricity and the internet.
