Published on 31 May 2024 on GuruFocus.com via Yahoo Finance
For the last decade-plus, a lack of both automation and new general-purpose technologies (GPTs) have weighed on U.S. economic growth. But new Vanguard research suggests that artificial intelligence (AI) will prove to be the next GPT, powering above-trend growth. Our forthcoming Megatrends research paper, due for release in June, discusses the importance of GPTs in driving periods of above-trend growth over the last 130-plus years.
If the AI impact approaches that of electricity, our base case is that [productivity] growth will offset demographic pressures, producing an economic and financial future that exceeds consensus expectations, Joe Davis, Vanguard global chief economist and the lead researcher, writes in this recent commentaryOpens in a new tab.