Luis Garicano argues that there is a very strong possibility of AI raising productivity globally, but Europe failing to adopt it as well as the rest of the world. However, Europe would still be exposed to higher interest rates due to AI because of integrated financial markets, causing a significant fiscal crisis.
Assuming that AI is going to increase productivity, adopting AI is absolutely critical and Europe is failing, badly, so far.
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Tl;dr:
Luis Garicano argues that there is a very strong possibility of AI raising productivity globally, but Europe failing to adopt it as well as the rest of the world. However, Europe would still be exposed to higher interest rates due to AI because of integrated financial markets, causing a significant fiscal crisis.
Assuming that AI is going to increase productivity, adopting AI is absolutely critical and Europe is failing, badly, so far.
More from a recent talk of his on the same subject [here](https://xcancel.com/johnrmyers/status/2038182018404520219)
>Hence, if AI were to increase productivity growth as much as it has declined since 1950, it would lead to an increase in rates of 118 basis points.
If my grandma had wheels, she’d be a bicycle.
!ping EUROPE&AI
*”The decades-long slowdown in productivity growth in advanced economies could end, if generative AI fulfills its potential”*
Girl, same