2025 Productivity Surge Tests AI Promise

Measured labor productivity jumped sharply in late 2024–2025 (U.S. Q3 2025 reported +4.9%; U.K. ~3.4% over six quarters), and many observers credit AI for at least part of the gain. The crucial question now is whether policy choices (regulation, investment, immigration) will sustain an AI‑driven productivity regime or let it fade. — If the surge persists and is AI‑driven, it changes fiscal and industrial policy tradeoffs — governments can rely more on growth, and policy should prioritize innovation adoption and diffusion.