Artificial Intelligence and Productivity in Europe

2025

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This paper estimates the medium-term impact of AI on productivity in Europe, finding modest gains that are larger than those for the US but with significant country-level variation.

* Analyzes the medium-term impact of AI adoption on total factor productivity across 31 European countries.
* Quantifies the uncertainty around AI's productivity impact by considering various scenarios and the role of regulation.
* Finds that while AI adoption is driven by wages, regulatory measures could significantly reduce potential productivity gains.

Tags: Artificial Intelligence, Productivity, Europe, Technology, Regulation

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