Artificial intelligence (AI) is expected to have a profound impact on the economy, but its timing of arrival remains uncertain. The recent frenzy surrounding DeepSeek’s cheaper AI model has sparked debate about job losses and market volatility.
A closer examination reveals that the effects of AI on the economy are already being felt, albeit in subtle ways. For instance, the China bubble never quite popped due to the country’s unique blend of state-led capitalism and rapid technological advancements.
As we look ahead, it’s essential to consider the long-term implications of AI on employment and economic stability. The Federal Reserve’s independence has also been a subject of discussion, with some arguing that its autonomy could be seen as undemocratic.
Ultimately, understanding when AI will show up in the economy requires a more nuanced approach, one that considers historical context and future projections. By taking a step back and examining trends over decades rather than days or years, we can better grasp the impact of AI on our economic landscape.
Source: https://www.bloomberg.com/news/newsletters/2025-02-01/when-does-ai-show-up-in-the-economy