Abstract

It has been called a transformative technology, which can change economic structures, market dynamics, and hopefully not replace labor but enhance productivity. In the USA investments in AI reached $25 billion in 2022, and overall, this amount increased from $39.6billion in Q3 2024 to $62.2billion in the last quarter of 2024 in the venture capital market, but with the number of deals dropping significantly. Overall global investment reached $100billion in 2024. According to Solow’s growth model, economic growth is driven by capital accumulation, Labor force growth and technological progress with the first suffering diminishing returns. The true test of AI is whether it significantly enhanced capital accumulation by increasing the efficiency and productivity of investments.

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