AI is everywhere except in the GDP numbers — here is what triggers the break

A year and a half ago, I attended an international event where AI experts gathered to discuss the technology's impact. During one of the AI sessions, we compared notes and realized that most attendees, including investors and founders, had not initially recognized AI as a revolutionary technology. The scale of AI adoption and revenue growth were significant enough that skeptics were now asking how to participate.

Despite AI being a hot topic in tech circles, the economic impact was not reflected in GDP numbers. This discrepancy puzzled everyone, including me, who had been working on AI solutions for over a decade. The paradox is similar to one observed in the 1980s when computer technology was present everywhere but not reflected in productivity statistics.

The recent surge in data center construction, driven by AI, shows up in GDP as private nonresidential fixed investment. However, this is not enough to explain the rapid adoption of AI across various industries. The real question is when AI will start showing up in GDP numbers, as its impact is already evident in enterprise spending and productivity improvements.