Great insights, as always - thanks for sharing ! How do you explain the continuous gains in productivity since mid '22, even before the breakthrough of generative AI, with a peak in unit labor costs that have continuously decreased since then ? Also, looking at the long term trends isn't there a kind of normalization in productivity trends after the various wobbles induced by the pandemic ?
Thanks - happy to hear you find my notes of value.
I'm inclined to put the gains in productivity down to various optimisation (supply chain, better business processes, etc) steps adopted to increase efficiency & resilience.
From a long term perspective, I don't think we see the normalisation just yet - with AI we're likely to experience a hockey stick type tragectory.
Sure, (some) businesses will have drawn the lessons from Covid. I believe home office is also, on a macro scale, a gain in efficiency. Let's see what AI brings into the mix in the coming months !
Great insights, as always - thanks for sharing ! How do you explain the continuous gains in productivity since mid '22, even before the breakthrough of generative AI, with a peak in unit labor costs that have continuously decreased since then ? Also, looking at the long term trends isn't there a kind of normalization in productivity trends after the various wobbles induced by the pandemic ?
Thanks - happy to hear you find my notes of value.
I'm inclined to put the gains in productivity down to various optimisation (supply chain, better business processes, etc) steps adopted to increase efficiency & resilience.
From a long term perspective, I don't think we see the normalisation just yet - with AI we're likely to experience a hockey stick type tragectory.
Sure, (some) businesses will have drawn the lessons from Covid. I believe home office is also, on a macro scale, a gain in efficiency. Let's see what AI brings into the mix in the coming months !