AI Productivity Paradox

Definition

The observed phenomenon where widespread investment in artificial intelligence technologies does not immediately translate into measurable aggregate productivity gains at the firm or economy level. Analogous to the Solow Paradox of the 1980s, the AI productivity paradox reflects the time required for organisational restructuring, skill development, and complementary investment before AI-driven efficiency improvements become visible in productivity statistics.

Related Terms

Absorption Rate Accretion/Dilution Analysis Adjusted EBITDA AI Audit Framework AI Deployment Risk

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