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Research Finds Baumol Disease Limits AI Economic Gains Very Little

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As AI affects some sectors more (ICT, Professions), others may become bottlenecks. How much can this limit the gains from AI, through a Baumol growth disease? Our answer is “very little”, unless workers and capital reallocation is highly sluggish and preferences rigid. 1/3

3:04 AM · May 20, 2026 View on X