Widespread adoption of AI by businesses will take time

THe 2010St there was no shortage of miraculous technologies, from tablets and 4g mobile internet to new forms of artificial intelligence (to the) Hey, Siri! But these have had surprisingly little effect on the economy. During that decade productivity growth in the rich world averaged a paltry 1% a year, keeping average wages low. Innovative companies have embraced the new technology, but many less adventurous ones have not bothered and, as a result, have seen few efficiencies. Experience has shown that technological wizardry and improving the average standard of living don’t always go hand in hand.

Generative to the, say its promoters, will be different. It hasn’t been since the invention of the Internet that a new technology has captured the public imagination so much. The technology is easy to use: within days of its release to the public, Chatgptthe most famous TO THE chatbot, had millions of users. It’s easy to see how this innovation could improve all kinds of jobs in all kinds of companies, from increasing the accuracy of doctors’ diagnoses to helping programmers write software code more efficiently.

Some companies are already incorporating to the in their operations. Tech companies are investing heavily in technology, advertising many thousands of roles. So are some brick and mortar companies. A drug discovered and designed by to the is progressing through human trials in China. Analysts a ubs figure Dominos Pizza can use to the to improve the accuracy of order delivery time estimates. Investors are rewarding early adopters. Since the beginning of the year, the median share price more to the-enthusiastic enterprises in the St&P 500 is up 11%. For the slower moving ones, that hasn’t changed at all.

The potential is huge. Yet for to the to truly spread through the economy, it must make its mark beyond the most enterprising companies. And this will take time. While the Internet began to be used by some businesses in the early 1990s, it wasn’t until the late 2000s that two-thirds of American businesses had a website. About 70 companies in the St&P 500 still show no interest for TO THE, according to our analysis. And below the corporate creme de la creme, the trends look even less encouraging. According to a recent survey of American and Canadian companies, one-third of small businesses have no definite plans to try generative-to the tools over the next year. Some evidence even suggests that using Chatgpt and its competitors are falling apart, perhaps because people have tried it and then decided it’s not for them.

Candies TO THE keep his promise? Organizations like the OECD propose many ways to improve diffusion from the best companies to the rest, including through better education, programs to increase business investment and changes to competition policy. Such goals are worthy, but difficult to achieve. Efforts by technology companies to do TO THE cheaper and easier to use will do more to accelerate adoption. In practice, most companies will adopt TO THE by default, as new, TO THEEnhanced features are added to the software and services they already use.

Indeed, even the most powerful technologies take time to become widespread, because companies tend to use a hodgepodge of software and services, some of which can be years or even decades old. Replacing outdated systems can be expensive, complicated and painful. Furthermore, in many government-run or heavily regulated industries, such as health care, education and construction, bosses and unions often oppose the deployment of new technologies, concerned it could lead to job losses . In time to the it could very well transform the way people live their lives and do their jobs. But the road to widespread diffusion, and any resulting productivity boom, will be long.

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