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Is generative AI poised to truly revolutionize the global economy, or are we facing another overhyped technological wave? A joint investigation by the Financial Times and MIT Technology Review delves into the question of whether AI can deliver on its promised productivity gains. Despite advancements like AI coding assistants, many companies are struggling to see a return on their AI investments. Skeptics point to the probabilistic nature of AI as a limiting factor, while others argue that businesses simply need more time to adapt and integrate AI effectively, citing the need for infrastructure development and workforce retraining. Erik Brynjolfsson draws parallels to the “productivity paradox of IT,” where substantial IT investments initially yielded little discernible impact. However, Daron Acemoglu cautions that AI’s narrow focus might lead to smaller and more delayed productivity gains than anticipated. While initial efforts often focus on cost reduction, experts agree that AI’s transformative potential lies in creating entirely new job roles and enhancing existing worker capabilities. McKinsey remains optimistic, projecting significant productivity boosts from AI, suggesting that the technology’s rapid evolution warrants continued hope and attention.