AI Productivity – What and Why? Increasing? Or Stagnating?

What is productivity? Here is an economic definition of productivity. This is what the internet says, Reserve Bank of Australia.

So, parameters here are — Output and Input

In AI, there are a lot of inputs, viz., manpower, electric power, data center charges, AI model learning charges, or AI subscription charges, whichever is applicable, and the engineer’s salary.

These were monitory inputs.

There can be other inputs too, but these would typically be found in areas such as agriculture or factories, including brick-making and bread-making facilities. Here, input includes the amount of refined flour needed, the amount of butter needed, the amount of electricity needed to bake bread, the amount of other ingredients, the amount of paper needed for baking and packaging, the delivery charges, and the supply chain charges to sell the made bread. All these are needed to compute productivity.

This was just an example of Economic productivity.

What about AI Productivity?

AI productivity is the amount (both quality and quantity) of output achieved with customer satisfaction, based on inputs such as engineers’ time, engineers’ salary, AI electricity, AI data manipulation (storage, retrieval, processing), and AI models (access, creation, and deployment).

So, AI productivity gain means we are producing more than what we invest.

The loss in AI productivity means we are experiencing a loss when using the AI inputs provided above to create a desired unit of output.

AI productivity balance means we are nearly at a balance; what we produce is what we put into it, as seen in the AI video we created.

So, what is the current state of the world and companies in AI Productivity?

Are we at a loss despite hundreds of thousands of job losses?

How to deal with it?

So who is putting in all the money in your AI if AI productivity is at loss or is it at gain ? Think!

The Big Tech Firms Right! All that the Rich Companies Earned?

The Big tech is investing in AI. But what about job loss with AI means then? Is this giving back? Or more or less?

To be continued..

Warm Regards…