Weak Links Will Curb AI Growth

Luis Garicano argues that while AI can automate many cognitive tasks and drive big productivity gains, real‑world growth will be constrained by downstream bottlenecks — for example regulatory timelines, clinical trials, and institutional processes that act like O‑rings. The net effect is strong sectoral boosts but uneven and institutionally limited aggregate acceleration. — If true, policy and institutional reform (permits, trials, approvals) will matter as much as technical progress for whether AI delivers broad prosperity or concentrated disruption.