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The Macroeconomic Effect of AI: Sizing the Software Engineering Channel (NBER)

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Researchers at the NBER developed a real-time measure to assess how artificial intelligence impacts the economy through software engineering productivity. Their analysis indicates that AI increased the market's expected present value of software engineering productivity by the equivalent of a permanent 32.6% gain between November 2022 and December 2025. This productivity boost corresponds to a 3.6% increase in GDP in the baseline scenario, rising to 6.5% when accounting for higher R&D productivity.

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Original publisherNBER
Canonical URLhttps://www.nber.org/papers/w35793
Publication timeTue, 29 Sep 2026 05:07:43 +0000
Retrieval time2026-09-29T05:19:54.570Z
Last seen2026-09-29T05:19:54.570Z
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Home Research Working Papers The Macroeconomic Effect of AI: Sizing… The Macroeconomic Effect of AI: Sizing the Software Engineering Channel Alex Blumenfeld, Jonathon Hazell, Chen Lian & Andreas Schaab Share X LinkedIn Facebook Bluesky Threads Email Link Working Paper 35793 DOI 10.3386/w35793 Issue Date September 2026 We measure how artificial intelligence (AI) affects the economy through its impact on software engineering productivity. We use information from financial markets to develop a forward-looking measure that is available in real time. We estimate the sensitivity of each firm’s stock return to an AI stock market index, and how this sensitivity depends on the share of firm payroll in software engineering.

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