AI and GDP - what does it mean? Sure, AI is “contributing” to GDP — but @davidsacks really nails it below, “Paying people to dig holes and f…

AI and GDP - what does it mean? Sure, AI is “contributing” to GDP — but @davidsacks really nails it below, “Paying people to dig holes and fill them back up increases GDP, as it is currently measured, even though that activity has no value.” In the case of AI, GDP is going up because of investments in AI infrastructure, but not because users in general are getting Return on Investment (most haven’t, so far, per multiple studies). The future of our nation doesn’t rest on building data centers; it rests on building AI that is good enough to consistently add value for its customers. If it doesn’t, all the building of data centers will turn out to have been an enormous black hole, temporarily good for GDP but of little lasting value. Paying people to dig holes and fill them back up increases GDP, as it is currently measured, even though that activity has no value. Similarly, hiring an extreme number of regulators to vex entrepreneurs nominally increases GDP in the short term, even though it reduces output in …

Source: Gary Marcus (X) | 2026-05-01