Home AI AI and the Productivity J-Curve – Will We See the Same in Education?
AI and the Productivity J-Curve – Will We See the Same in Education?

AI and the Productivity J-Curve – Will We See the Same in Education?


In a recently published article in The Wall Street Journal, reporter Angus Loten writes about the pandemic-induced acceleration of artificial intelligence (AI) implementations by businesses, with some industries pulling ahead of others.

According to a recent presentation by Erik Brynjolfsson, director of the Stanford Digital Economy Lab, new technologies like AI with the potential to transform entire business models can take decades before changes yield real-world results.

Mr. Brynjolfsson further stated that “we’re having a few superstars doing really well, but the whole reason that it takes so long in the first place is that it’s not that easy.” As companies deploy AI in their daily operations, a productivity J-curve is likely to slow productivity increases at first and accelerate productivity later after the complementary processes are modified and/or developed.

The adoption of AI was pushed during the pandemic as companies utilized digital tools to try to dampen the economic impact of the crisis. Routine tasks were automated, and efficiencies were targeted through the use of sophisticated AI analytics tools.

According to Professor Scott Galloway in his book Post Corona, the pandemic accelerated the online adoption curve in some businesses by at least a decade. Mr. Brynjolfsson confirmed this fact by stating that companies in data-rich markets — like the financial services sector — have an advantage over industries like construction, which lack the data needed to train algorithms to provide business insights.

Mr. Loten cites two recent papers that report the increase of adoption of AI by businesses. A November 2020 McKinsey paper, “The state of AI in 2020,” surveyed 2,300 global companies about their use of AI. Nearly half indicated that they had adopted AI in at least one business function. More than two-thirds of respondents who reported adopting AI indicated that its adoption increased revenue.

The other source cited, IT consulting firm Gartner, projected that the accelerated IT spending in 2020 due to the pandemic would continue with a 6.2 percent increase in 2021.

Mr. Brynjolfsson added that “it’s not enough to have great technology.” Companies will also need to reconfigure hiring strategies and internal training programs based on AI implementation.

This article is aligned with two recent posts of mine. In “Why Is It So Difficult to Implement Educational Technology?,” I discussed a blog article by Professor Steven Mintz, who pointed out that universities operating wholly online have had to implement and update educational technologies constantly as technologies have evolved over the past three decades. Mr. Mintz listed inadequate training in technology as one of his reasons why educational technology had not lived up to its promise, and I agreed with him. This statement aligns with Mr. Brynjolfsson’s point about hiring.

In “AI: What Will It Mean for American Education Tomorrow?,” I wrote about the need for institutions to change their curriculum to better prepare our students for the workforce of the future.

While Mr. Brynjolfsson is correct about the length of time it takes for transforming technologies to change industries, we are already in the throes of change, thanks to AI. Coursera, arguably the largest education platform for higher education, just went public with a valuation of $5.9 billion.

With its substantial numbers of users (77 million), it’s the perfect place to apply AI for analytics and learning. Since most of its courses are inexpensive, it’s only a matter of time before it becomes a major competitor to many non-selective institutions.

Wally Boston Dr. Wallace E. Boston was appointed President and Chief Executive Officer of American Public University System (APUS) and its parent company, American Public Education, Inc. (APEI) in July 2004. He joined APUS as its Executive Vice President in 2002. In September 2019, Dr. Boston retired as CEO of APEI and retired as APUS President in August 2020. Dr. Boston guided APUS through its successful initial accreditation with the Higher Learning Commission of the North Central Association in 2006 and ten-year reaccreditation in 2011. In November 2007, he led APEI to an initial public offering on the NASDAQ Exchange. For four years from 2009 through 2012, APEI was ranked in Forbes' Top 10 list of America's Best Small Public Companies. During his tenure as president, APUS grew to over 85,000 students, 200 degree and certificate programs, and approximately 100,000 alumni. While serving as APEI CEO and APUS President, Dr. Boston was a board member of APEI, APUS, Hondros College of Nursing, and Fidelis, Inc. Dr. Boston was appointed to the National Advisory Committee on Institutional Quality and Integrity by the U.S. Secretary of Education in 2019. He also serves as a member of the Board of Advisors of the National Institute for Learning Outcomes Assessment (NILOA), as a Trustee of The American College of Financial Services, as a member of the board of Our Community Salutes - USA, and as a member and chair of the board of New Horizons Worldwide. He has authored and co-authored papers on the topic of online post-secondary student retention, and is a frequent speaker on the impact of technology on higher education. Dr. Boston is a past Treasurer of the Board of Trustees of the McDonogh School, a private K-12 school in Baltimore. In his career prior to APEI and APUS, Dr. Boston served as either CFO, COO, or CEO of Meridian Healthcare, Manor Healthcare, Neighborcare Pharmacies, and Sun Healthcare Group. Dr. Boston is a Certified Public Accountant, Certified Management Accountant, and Chartered Global Management Accountant. He earned an A.B. degree in History from Duke University, an MBA in Marketing and Accounting from Tulane University’s Freeman School of Business Administration, and a Doctorate in Higher Education Management from the University of Pennsylvania’s Graduate School of Education. In 2008, the Board of Trustees of APUS awarded him a Doctorate in Business Administration, honoris causa, and, in April 2017, also bestowed him with the title President Emeritus. In August 2020, the Board of Trustees of APUS appointed him Trustee Emeritus. In November 2020, the Board of Trustees announced that the APUS School of Business would be renamed the Dr. Wallace E Boston School of Business in recognition of Dr. Boston's service to the university. Dr. Boston lives with his family in Austin, Texas.


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