Artificial Intelligence and the Modern Productivity Paradox: A Clash of Expectations and Statistics

This paper discusses the AI paradox- on the one hand, it has been surpassing human-level performance and leveraging rapid advances in other technologies, on the other hand, statistics show a decline in productivity growth and stagnation in real income since 1990s. It concludes that the paradox is a result of four types of lags and that national statistics might fail to measure full benefits of new technologies until new innovations that complement it happen.