The Impact of AI in the United States from Mid-2025
The United States is experiencing a tangible shift in how artificial intelligence is influencing both productivity and economic growth. According to JPMorgan’s market insight, AI-related capital expenditures contributed approximately 1.1 % to GDP growth in the first half of 2025, underscoring that AI is becoming an economic engine rather than just a technological curiosity. The recent release of the 2025 AI Index Report by Stanford HAI highlights that U.S. private AI investment soared to US$109.1 billion in 2024, far outpacing China and the U.K., reflecting how the country is positioning itself to lead the AI age.
Even so, the labour market impact remains nuanced. A study by Yale University’s Budget Lab found that, while generative AI has captured headlines, there has been no large-scale labour disruption evident yet in the U.S. job market. At the same time, though not yet economy-wide, entry-level tech workers are showing early signs of stress. For example, one analysis by Goldman Sachs found unemployment among young tech workers rising nearly 3 percentage points since early 2024, suggesting that while AI offers opportunity, its benefits and burdens are unevenly distributed.
Looking ahead, the transformative potential of AI is significant—but it comes with caveats. As the Economist observed, the “true impact will become apparent” in 2026 and beyond as investments mature and are scaled. The Economist Major financial institutions, such as Morgan Stanley, estimate AI could add up to US$16 trillion in value to the S&P 500 over time, yet achieving that will require widespread structural changes, not just incremental tool adoption. For business leaders and investors alike, the message is clear: AI presents one of the largest economic inflection points of our era—but success will depend on thoughtful strategy, retraining, governance and partnerships, not simply deploying a new algorithm.
