AI Summary

Gregory Daco, EY-Parthenon’s chief economist, warns that AI‑driven productivity gains are likely to concentrate benefits among large, vertically integrated firms rather than spreading income more broadly. He argues that such gains protect profit margins but can create a winner‑takes‑all environment, echoing patterns seen in past technological revolutions like the 19th‑century railroads and the 1990s dot‑com boom. Daco notes that smaller firms often face ongoing cost pressures, policy uncertainty, and higher interest rates in these scenarios.

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