Computers never showed up in GDP, and AI may not either

Andrej KarpathyAndrej Karpathy — “We’re summoning ghosts, not building animals”at 1:24:00

From the conversation

I thought that GDP should go up. But then I looked at some of the other technologies that I thought were very transformative, like computers or mobile phones or et cetera. You can't find them in GDP. GDP is the same exponential. Even the early iPhone didn't have the App Store, and it didn't have a lot of the bells and whistles that the modern iPhone has. So even though we think of 2008, when the iPhone came out, as this major seismic change, it's actually not. Everything is so spread out and it so slowly diffuses that everything ends up being averaged up into the same exponential. It's the exact same thing with computers. You can't find them in the GDP like, "Oh, we have computers now." That's not what happened, because it's such slow progression. With AI we're going to see the exact same thing. It's just more automation. It allows us to write different kinds of programs that we couldn't write before, but AI is still fundamentally a program. It's a new kind of computer and a new kind of computing system. But it has all these problems, it's going to diffuse over time, and it's still going to add up to the same exponential. We're still going to have an exponential that's going to get extremely vertical. It's going to be very foreign to live in that kind of an environment.…

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Summary

Transformative technologies like computers and smartphones, despite seeming like seismic shifts, do not produce detectable breaks in GDP growth curves. The impact of such innovations diffuses so slowly and broadly across the economy that it gets absorbed into the same underlying exponential trend. Karpathy implies that AI's economic impact may similarly be hard to isolate in aggregate statistics, even if the technology proves genuinely transformative.

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