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Chronicles

The story behind the story

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Economists at Goldman Sachs and JPMorgan report the AI boom contributed “basically zero” to US economic growth in 2025, challenging claims of up to 92% growth

Massive investment in AI contributed “basically zero” to U.S. economic growth last year, Goldman Sachs has calculated.

Washington Post Shira Ovide

Context & Ripple Effects

This is a sharp revision to the macro narrative around AI: Goldman Sachs previously projected that generative AI could raise global GDP materially over a decade, while a January analysis placed the investment boom at about 1% of US GDP. The new estimates separate heavy spending from measured economy-wide output.

The caution also fits earlier evidence that the initial boom did not translate into broad IT hiring: the sector added only 700 US jobs in 2023. It matters because Goldman says AI-related borrowing now represents roughly 30% of recent investment-grade bond issuance.

First-order effects

  • Claims that AI was a major driver of 2025 US growth lose support from two prominent bank economics teams, raising the bar for attributing near-term GDP gains to AI spending.
  • Goldman Sachs’ estimate puts more attention on the financing side of the buildout: AI investment is affecting credit issuance even where its direct measured growth contribution is minimal.

Second-order effects

  • Investors and corporate finance teams will face greater pressure to distinguish infrastructure outlays from demonstrated productivity or revenue gains when assessing AI-related capital spending.
  • The gap between capital deployment and macro output strengthens the case that benefits remain concentrated in builders and early adopters, rather than yet flowing broadly through the economy.

Third-order effects

  • If this pattern persists, AI may resemble a long-dated industrial buildout: financial markets and infrastructure suppliers feel its effects before national productivity data does.
  • The key structural question becomes whether adoption can spread beyond technology-intensive firms; without that diffusion, AI investment can remain large while aggregate growth effects stay muted.

The trend: AI is moving from an investment-led boom toward a harder test of whether deployment produces broad, measurable productivity gains.

Discussion

  • @justinhendrix Justin Hendrix on bluesky
    “Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.”
  • r/BetterOffline r on reddit
    Massive investment in AI contributed “basically zero” to U.S. economic growth last year, Goldman Sachs has calculated.
  • r/antiwork r on reddit
    How much did AI boost the economy?  Maybe zilch, some economists say.