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Early Evidence on the Relationship Between AI, Costs, and Prices Within BEA’s Industry Economic Accounts

Early Evidence on the Relationship Between AI, Costs, and Prices Within BEA’s Industry Economic Accounts (PDF)

In previous work Highfill and Samuels [2026], we explored the relationship between AI and the sources of U.S. economic growth. In this paper, we investigate the relationship between AI adoption, production costs, and output prices. We find that AI intensity is associated with lower prices charged to purchasers, and some of this reduced price is related to reduced input cost contributions, in particular labor and materials costs.

Tina Highfill and Jon D. Samuels

JEL Code(s) D24 E31 O33 Published