Story perspectives

AI Fuels 1.3% GDP Growth, Boosts Tech Spending

10/27/2025

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Summary

Story summary

AI is driving U.S. GDP growth, contributing 1.3 percentage points in Q2 2025, per the Bank of America Institute's October 2025 report.
The growth stems from higher capital expenditures in software and computing, reflecting AI-driven productivity gains.
The report finds little evidence of significant job disruption, with gains concentrated in white-collar sectors.
Small businesses are increasing tech spending, with nearly 7% higher payments to tech services year over year.

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Story summary

AI is driving U.S. GDP growth, contributing 1.3 percentage points in Q2 2025, per the Bank of America Institute's October 2025 report.
The growth stems from higher capital expenditures in software and computing, reflecting AI-driven productivity gains.
The report finds little evidence of significant job disruption, with gains concentrated in white-collar sectors.
Small businesses are increasing tech spending, with nearly 7% higher payments to tech services year over year.