In 1987, economist and Nobel laureate Robert Solow made a stark observation about the stalling evolution of the Information Age: Following the advent of transistors, microprocessors, integrated circuits, and memory chips of the 1960s, economists and companies expected these new technologies to disrupt workplaces and result in a surge of productivity. Instead, productivity growth slowed, dropping from 2.9% from 1948 to 1973, to 1.1% after 1973.
Newfangled computers were actually at times producing too much information, generating agonizingly detailed reports and printing them on reams of paper. What had promised to be a boom to workplace productivity was for several years a bust. This unexpected outcome became known as Solow’s productivity paradox, thanks to the economist’s observation of the phenomenon.
Data on how C-suite executives are—or aren’t—using AI shows history is repeating itself, complicating the similar promises economists and Big Tech founders made about the technology’s impact on the workplace and economy. Despite 374 companies in the S&P 500 mentioning AI in earnings calls—most of which said the technology’s implementation in the firm was entirely positive—according to a Financial Times analysis from September 2024 to 2025, those positive adoptions aren’t being reflected in broader productivity gains.
A study published in February by the National Bureau of Economic Research found that among 6,000 CEOs, chief financial officers, and other executives from firms who responded to various business outlook surveys in the U.S., U.K., Germany, and Australia, the vast majority see little impact from AI on their operations. While about two-thirds of executives reported using AI, that usage amounted to only about 1.5 hours per week, and 25% of respondents reported not using AI in the workplace at all. Nearly 90% of firms said AI has had no impact on employment or productivity over the past three years, the research noted.
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