Will Artificial Intelligence (A.I.) Drive Higher Productivity for Companies? Many American businesses are increasingly turning to A.I. to power various aspects of their operations, from Wendy’s ordering kiosks to Ben & Jerry’s grocery store freezers. The big question is whether this technology will actually make companies more efficient. Economic policymakers and companies alike dream of rapid productivity improvement, as it allows for increased profits without sacrificing wages or raising prices. However, some economists and officials doubt that A.I., especially generative A.I., has spread widely enough to impact productivity data significantly. While some, like Jerome H. Powell, are cautious about A.I.'s immediate impact on productivity growth, others like Erik Brynjolfsson are more optimistic. Brynjolfsson has even bet $400 that productivity will take off this decade, partly due to A.I. Companies are using A.I. for a variety of tasks, from answering human resources queries to tailoring marketing efforts and managing inventory. For example, Walmart has implemented generative A.I. in its employee app to quickly answer questions and summarize meeting notes, while Ben & Jerry’s uses A.I.-equipped cameras in freezers to manage inventory and boost sales. Despite skepticism about A.I.'s potential for major change, some economists believe that A.I. could be "transformative" for the U.S. economy in the second half of the 2020s, potentially saving workers significant time across various occupations. In conclusion, while the impact of A.I. on productivity may not be fully evident yet, there is optimism about its potential to drive significant improvements in the near future.