Kevin Hassett: The AI economy is advancing faster than the dot-com era

Kevin Hassett highlights that AI will boost productivity and wage growth

Kevin Hassett explained that the White House sees artificial intelligence as an opportunity to raise productivity and strengthen the economy, as long as proper training is provided so workers can adapt to this new era. Citing research by experts such as Erik Brynjolfsson at Stanford, Hassett stated that AI acts as a “coach” capable of guiding any employee in their daily work without requiring them to learn new programming languages.

Hassett noted that the rapid expansion of AI could generate a 4% productivity increase next year, allowing companies to produce more without hiring large numbers of additional employees. Although recent graduates are experiencing uncertainty, he said the AI-driven economy is moving faster than the dot-com era, creating more productive and better-paid workers.

He added that rising productivity is already translating into an increase in real wages, which had fallen by $3,000 during the Biden administration — a shift that, in his view, is putting more money into the pockets of American families.

Video Source: Fox News.