The technology sector has been driving market growth this year as the AI race shows no signs of slowing. Joe Brusuelas, Chief Economist at RSM, joins Market Domination Overtime to talk about the AI boom and how it's changing the industry.
“I [AI’s] “AI is going to be part of the economic story. It's really about the shadow of the future. AI is going to drive growth. Maybe not as much as people say, but there is a fundamental business case for AI,” Brusuelas explains.
He added that AI technology will also be essential to boosting productivity, but noted that this is still years away. But Brusuelas told Jared Bricle and Julie Hyman that, despite the initial hype, AI will slowly transform the economy over time.
For more expert insights and the latest market trends, click here to watch this entire episode of Market Domination Overtime.
This post was written by Melanie Leal
Video Transcript
Well, I want to invite our next guest here today to actually comment on this.
I'll try throwing a bit of a curveball.
Friend of the show and chief economist, Joe Brusuelas RSM.
I'm glad you came to Studio Joe.
We're going to talk about jobs, we're going to talk about economic data, but when you look at this phenomenon, it's not just about video, it's about the whole AI push here.
How do you position this as an economic driver?
I spoke to Darren Lu yesterday and he said it's not going to contribute as much to economic growth as people think.
What do you think?
interesting.
I just spent a week at MIT and got to talk to Darren and other people there.
Look, I think that's going to be part of the economic story.
It's really about a shadow of the future.
AI will drive growth. Although it may not be as popular as people make it out to be, there is a second fundamental business case for adopting AI.
It will be part of a productivity boom.
Now productivity is soaring.
Right now, we’re not organized around AI, and AI is still a few years away.
So, I'm very optimistic about the whole ecosystem around AI and all its components.
Furthermore, I believe that general-purpose technologies like steam and electricity will slowly transform the economy over time.
You know, a portion of the population, people who look at Yahoo Finance, are going to leverage AI in a different way than the rest of the country.
Let's start by looking there.
You know, here in New York, all of our friends who work at systemically important banks have labs and have been using AI and machine learning to manage their portfolios for several years now.
They are way ahead of what's going on.
This is one of the reasons why, as economists, we focus so much on the productivity of financial firms: using the productivity of just a portion of the corporate arm of a bank would distort the figures.
So we know about this, we can feel it, we can see it, and it's tangible when you open up the quarterly statements for your portfolio.
I know they use this.
The same thing you see when you get a warning email from your kid's middle schooler, you see in returns.
There are ways to know if you are using AI, but not whether you are actually using it. But AI is already spreading beyond the enterprise sector.
no.
And we have all learned to incorporate that into our lives.
I travel a lot for work.
I have had the opportunity to speak about the U.S. and global economy, and airlines that have chosen to use AI are running their apps extensively.
They managed my entire experience smoothly which honestly no human could have done.
From my perspective, the airline choice has significantly improved the overall experience for business travelers.
