Comment by cynicalpeace

20 hours ago

It's possible that "smarter" AI won't lead to more productivity in the economy. Why?

Because software and "information technology" generally didn't increase productivity over the past 30 years.

This has been long known as Solow's productivity paradox. There's lots of theories as to why this is observed, one of them being "mismeasurement" of productivity data.

But my favorite theory is that information technology is mostly entertainment, and rather than making you more productive, it distracts you and makes you more lazy.

AI's main application has been information space so far. If that continues, I doubt you will get more productivity from it.

If you give AI a body... well, maybe that changes.

25 years of shipping software, and IT absolutely increased productivity - just not for everyone, not everywhere. Some workflows got 10x faster, others got slower from meetings about the new tools.

AI feels the same. I'm shipping indie apps solo now that would have needed a small team five years ago. But in bigger orgs I see people spending 20 minutes verifying 15-minute AI output that used to be a 30-minute task they'd just do. Depends where you sit.

Its quite possible the use of LLMs means that we are using less effort to produce the same output. This seems good.

But the less effort exertion also conditions you to be weaker, and less able to connect deeply with the brain to grind as hard as once did. This is bad.

Which effect dominates? Difficult to say.

Of course this is absolutely possible. Ultimately there was a time where physical exertion was a thing and nobody was over-weight. That isn't the case anymore is it.

> "information technology" generally didn't increase productivity

Do you think it'd be viable to run most businesses on pen and paper? I'll give you email and being able to consume informational websites - rest is pen and paper.

  • Productivity metrics were better when businesses were run on just pen and paper. Of course, there could be many confounding factors, but there are also many reasons why this could be so. Just a few hypotheses:

    - Pen and paper become a limiting factor on bureaucratic BS

    - Pen and paper are less distracting

    - Pen and paper require more creative output from the user, as opposed to screens which are mostly consumptive

    etc etc

Downvoted by the AI Nazis. They are running a tight ship before the IPOs.

  • I downvoted it because it doesn't add anything useful to the conversation, and I don't own any AI stock.

    • It's a hypothesis that "smarter" AI models, ie GPT-5.5, may not be a great boon to productivity. Given that this is the raison d'etre of AI models, and improving them, I don't see why it is any less useful than any other discussion.