Key points
- Computer-driven (algorithmic) trading already accounts for most US share trading; AI is being added to it.
- If AI raises productivity, the economy can grow faster without extra inflation.
- The size and timing of any productivity boost are uncertain; past technologies took years to show up in the data.
In history
From 2023, enthusiasm about AI drove a large share of US stock market gains, concentrated in a handful of very large technology companies, alongside a surge in spending on data centres.
Related terms