AI as an innovation in the method of innovation: implications for productivity growth
File(s)
Accepted version
Author(s)
Haskel, Jonathan
Corrado, Carol
Jona-Lasinio, Cecilia
Bontadini, Filippo
Type
Journal Article
Abstract
General-purpose technologies (GPTs) such as steam, electricity, and information and communication technologies (ICT) have historically reshaped production possibilities and transformed macroeconomic performance. Artificial intelligence (AI), and in particular recent advances in generative and predictive models, appears to share these characteristics: broad applicability, rapid improvement, complementarity with other technologies, and the capacity to reorganize production at scale.
This paper develops and implements a measurement framework for evaluating AI’s contribution to labor productivity growth. We view AI both as a GPT and an innovation in the method of innovation (IMI) that raises the efficiency of intangible asset creation. Intangibles—software, data assets, R&D, organizational capital, brand and marketing assets (following Corrado, Hulten, and Sichel 2009)—play a central role in innovation and organizational change in modern economies (Corrado et al. 2022), suggesting that the capacity for these assets to propagate productivity improvements through
their economy-wide use is substantial.
This paper develops and implements a measurement framework for evaluating AI’s contribution to labor productivity growth. We view AI both as a GPT and an innovation in the method of innovation (IMI) that raises the efficiency of intangible asset creation. Intangibles—software, data assets, R&D, organizational capital, brand and marketing assets (following Corrado, Hulten, and Sichel 2009)—play a central role in innovation and organizational change in modern economies (Corrado et al. 2022), suggesting that the capacity for these assets to propagate productivity improvements through
their economy-wide use is substantial.
Date Acceptance
2026-03-06
Citation
AEA Papers and Proceedings, 116, pp.1-5
ISSN
2574-0768
Publisher
American Economic Association
Start Page
1
End Page
5
Journal / Book Title
AEA Papers and Proceedings
Volume
116
Copyright Statement
Copyright © 2026 Copyright Owner. This is the author’s accepted manuscript made available under a CC-BY licence in accordance with Imperial’s Research Publications Open Access policy (www.imperial.ac.uk/oa-policy)
License URL
Publication Status
Accepted