Tech

AI’s productivity impact: measuring time savings versus costs

Measuring AI’s productivity impact is challenging without better data on time savings versus time taxes.

Published

1 month ago

March 20, 2025

Ahron Young

Measuring AI’s productivity impact is challenging without better data on time savings versus time taxes.

In Short

Measuring AI’s impact on productivity is difficult due to data scarcity and varying adoption rates among companies. Focusing on how AI saves time can clarify its productivity effects, necessitating improved data collection methods to relate time use to economic outcomes.

Measuring the impact of AI on productivity is challenging due to a lack of data.

The phrase “time is money” resonates in the context of AI, as time savings are vital for assessing technology investments.

AI’s effect on total factor productivity, which reflects value generation from resources, is a concern for both business leaders and policymakers amid stagnant productivity growth.

While new AI models emerge regularly, evidence of efficiency gains in economic statistics remains elusive. Surveys indicate that many companies are experimenting with AI, but adoption rates vary significantly across regions.

New technologies

Historically, the productivity benefits of new technologies can take time to appear in national statistics, illustrated by the example of electrification in American manufacturing.

Furthermore, measuring productivity is complex in sectors that do not produce standardised goods, making it difficult to quantify output quality in areas like legal or consulting services.

Focusing on time spent by workers and its implications can provide a clearer picture of AI’s productivity effects. Historical improvements in productivity stem from workers accomplishing tasks more swiftly.

AI has the potential to streamline time-consuming processes, prompting businesses to examine how employees currently use their time and identify areas of inefficiency.

Economists should develop better methods for data collection, such as tracking technology usage, to better understand how daily time allocation correlates with productivity value and AI’s economic impact.

Tech

Nvidia to build AI supercomputers in the U.S. for first time

Nvidia invests $500 billion in U.S. AI supercomputers, shifting production to Texas to strengthen supply chains and boost domestic growth amid rising tariffs and national tech pressures.

Published

3 days ago

April 18, 2025

Veronica Dudo

Nvidia invests $500 billion in U.S. AI supercomputers, shifting production to Texas to strengthen supply chains and boost domestic growth amid rising tariffs and national tech pressures.

Nvidia to build AI supercomputers in the U.S. for the first time — a $500 billion move that could redefine the global tech industry.

With new tariffs on imports from China and Taiwan, the chip giant is shifting production to Texas, partnering with Foxconn and Wistron.

Nvidia says the decision will strengthen its supply chain and boost domestic economic growth.

The announcement comes amid growing pressure to secure national tech infrastructure and reduce reliance on Asia. How will this impact jobs, prices, and America’s AI ambitions?

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Tech

‘Stuck in the past’: Has Apple lost its edge?

Apple, once an innovator, faces criticism for stale updates and designs, prompting comparisons to 1980s IBM and calls for Tim Cook’s departure.

Published

5 days ago

April 16, 2025

Ahron Young

Apple, once an innovator, faces criticism for stale updates and designs, prompting comparisons to 1980s IBM and calls for Tim Cook’s departure.

Apple, once a symbol of innovation, is now under fire for uninspiring product updates.

The headline “Has Apple lost its edge? Critics say it’s stuck in the past” captures growing frustration over recycled designs and underwhelming features.

From the original iPhone to the lacklustre Apple Intelligence, critics now compare the company to IBM in the 1980s. Is it time for Tim Cook to step aside?

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#Apple #TimCook #TechNews #iPhone #AppleIntelligence #Innovation #BradGastwirth #TechDebate

Tech

OpenAI explores social network to rival Elon Musk

OpenAI is considering a social network to rival Musk’s X, spurred by the success of its new image-generation feature.

Published

5 days ago

April 16, 2025

Ahron Young

OpenAI is considering a social network to rival Musk’s X, spurred by the success of its new image-generation feature.

In Short

OpenAI is considering creating a social network to compete with Elon Musk’s X and Meta’s Instagram, following high demand for its new image-generation tool.

The company has raised $40 billion in funding and is facing increased server demands, prompting efforts to temporarily limit the tool’s usage.

OpenAI is contemplating the development of a social network to rival Elon Musk’s X and Meta’s Instagram, according to an informed source.

This initiative is reportedly in the early stages and has emerged following the success of OpenAI’s latest image-generation tool, which has stressed the company’s servers.

The announcement was first reported by The Verge, while OpenAI has chosen not to comment on the matter.

Image-generation

In March, OpenAI launched its new image-generation feature designed to create various visual content, including diagrams, infographics, and logos. This tool also enables users to produce artistic renditions from their uploaded images.

Recently, images generated by this feature have gained significant traction on social media, with OpenAI’s CEO Sam Altman recently using one for his profile photo on X. Altman noted the overwhelming popularity has led to increased server demands.

He mentioned that the company is currently looking to limit the feature’s usage temporarily while they enhance its efficiency.

The generative AI sector is highly competitive, particularly with the involvement of Musk’s xAI, which recently acquired X. The relationship between Altman and Musk has become contentious, particularly surrounding OpenAI’s move to become a for-profit entity.