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Just How Bad Would an AI Bubble Be?


The entire U.S. economy is being propped up by the promise of productivity gains that seem very far from materializing.

In the study, published in July, the think tank Model Evaluation & Threat Research randomly assigned a group of experienced software developers to perform coding tasks with or without AI tools. On the one hand, the United States is undergoing an extraordinary, AI-fueled economic boom: The stock market is soaring thanks to the frothy valuations of AI-associated tech giants, and the real economy is being propelled by hundreds of billions of dollars of spending on data centers and other AI infrastructure. In a recent analysis, the economists Sarah Eckhardt and Nathan Goldschlag used five different measurements of AI exposure to estimate how the new technology might be affecting a range of labor-market indicators and found virtually no effect on any of them.

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