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This analysis aims to understand why AI productivity gains are slower to manifest across economies.

May 24, 2026Open Access

AI Deployment and Productivity: Why Productivity Diffusion Takes Time

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This analysis aims to understand why AI productivity gains are slower to manifest across economies.
Examined the relationship between generative AI deployment and productivity gains.
Analyzed organizational adjustment activities in firms deploying AI technologies.
Discussed the challenges of measuring true productivity during the AI diffusion process.
AI deployment faces significant challenges due to necessary organizational adjustments.
Initial productivity gains may not reflect true economic improvements due to integration costs.
Measured TFP growth might be biased, suggesting greater productivity than actually achieved during AI integration.

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This note explores how organizational integration issues slow productivity improvements during AI implementation.

Nomura et al. (2026) studied this question.

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