Flutterby™! : Bank of England finds little AI productivity growth

Bank of England finds little AI productivity growth

2026-11-07 18:30:29.495064+01 by Dan Lyke 0 comments

The Register: Bank of England pours cold water on AI productivity boom.

In its latest Monetary Policy Report, the central bank found that AI has increased UK productivity by an estimated 0.5 percent over the past three years. That works out to just 0.1 to 0.2 percentage points of additional annual productivity growth since early 2024, hardly the economic revolution Silicon Valley has been promising.

And then there's the caveat that spending on AI is up, and businesses are hiring fewer workers, which also make the numbers look artificially inflated.

Carina C. Zona @cczona@hachyderm.ioM notes:

Sunk Cost Fallacy in action: we've spent a fortune on accomplishing absolutely nothing, so obviously we need to spend bigger on the failed strategy. Go into debt! That's gotta work.

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