Trump policies are helping ensure the US leads in global AI revolution, White House economic advisers argue

""The AI revolution, with its parallels to the Industrial Revolution, presents a profound economic inflection point with the potential to significantly increase the GDP of countries that embrace it," the report reads. Citing economic research from 2000 on the Industrial Revolution and resulting Great Divergence - the era where the growth of countries that adopted new technologies outpaced countries which didn't - the report notes that AI has the potential to bring about a similar global sea change."

"The first metric the report introduces is the economic concept of Total Factor Productivity, an indicator that gauges an economy's efficient usage of inputs - such as labor and resources - to generate outputs - such as GDP. The report authors state that while this is an important metric that reveals AI's impact on productivity, measuring investment in multiple AI domains, from the models themselves to their supporting infrastructure, is also key."

The U.S. is sustaining a lead in global artificial intelligence through multiple economic indicators pointing to widening AI-driven growth disparities akin to the Industrial Revolution's Great Divergence. Wealthy, industrialized nations possess resources to invest in AI tools and infrastructure while developing countries risk falling behind. Total Factor Productivity gauges AI's impact on efficient use of labor and resources to boost GDP. Measuring investment across AI domains—from models to supporting infrastructure—signals commitment to more capable systems despite rising costs. AI system performance on increasingly complex tasks provides an additional metric that can amplify GDP gains for early adopters.

Read at Nextgov.com