Andrew Busch: The Private Equity Reset & What Business Owners Need to Know

Right now, if we take a step back and look at it from an economic standpoint, a lot of people will tell you it's hard to see where AI is really contributing to productivity.

I think that overall, the economic numbers that come out of the United States should be taken with a big grain of salt, not as big as China's numbers, but the US.

I mean, they've got reporting problems on a lot of this data, right? And the way they measure productivity is kind of strange, depending on how you look at it.

The San Francisco Fed just did a bunch of research, and they really lowered the amount of productivity that they see in the economy.

But I will tell you, it just depends on what area you're in.

I think it can be significant.

And I think a lot of the productivity that we're seeing is from people right now working longer hours more than the AI is contributing to it.

But it's just hard to tell.

I would just use the example of cell phones, right? When we first got like the Apple cell phones, they were amazing, right? But no one understood like having a computer in your hand, how powerful that was.

think a lot of the productivity numbers picked up on the efficiency of a cell phone.

And just in the same way, I don't think we're quite there yet with the productivity that's coming or even existing to this day from AI.

And I know personally the way I use it and how it's made me, I'm not kidding, 5X.

on my productivity personally.

And I don't want to over project that into other industries because it takes a little while.

If you're in the physical world, it's a big deal, I think, for these changes that are occurring that we're already seeing.

And so I think it's generating a lot of growth and it's generating a lot of capex, clearly.

Almost a trillion dollars is expected, maybe a trillion and a half by next year.

So we'll see how that plays out.

But again, you know, I'm not saying AI is the holy grail.

It's just that it's just hard to get it picked up necessarily in the productivity numbers that we're getting out of the U.S.

Yeah.

So I think the first time I fully appreciated the power of the cell phone to transform my life was the first time I sent a wire from a chairlift.

Didn't

have to be glued to a laptop and a phone to, you know, make all that work.

And I thought, huh, you know, I could get used to this.

Right now, if we take a step back and look at it from an economic standpoint, a lot of people will tell you it's hard to see where AI is really contributing to productivity.

I think that overall, the economic numbers that come out of the United States should be taken with a big grain of salt, not as big as China's numbers, but the US.

I mean, they've got reporting problems on a lot of this data, right? And the way they measure productivity is kind of strange, depending on how you look at it.

The San Francisco Fed just did a bunch of research, and they really lowered the amount of productivity that they see in the economy.

But I will tell you, it just depends on what area you're in.

I think it can be significant.

And I think a lot of the productivity that we're seeing is from people right now working longer hours more than the AI is contributing to it.

But it's just hard to tell.

I would just use the example of cell phones, right? When we first got like the Apple cell phones, they were amazing, right? But no one understood like having a computer in your hand, how powerful that was.

think a lot of the productivity numbers picked up on the efficiency of a cell phone.

And just in the same way, I don't think we're quite there yet with the productivity that's coming or even existing to this day from AI.

And I know personally the way I use it and how it's made me, I'm not kidding, 5X.

on my productivity personally.

And I don't want to over project that into other industries because it takes a little while.

If you're in the physical world, it's a big deal, I think, for these changes that are occurring that we're already seeing.

And so I think it's generating a lot of growth and it's generating a lot of capex, clearly.

Almost a trillion dollars is expected, maybe a trillion and a half by next year.

So we'll see how that plays out.

But again, you know, I'm not saying AI is the holy grail.

It's just that it's just hard to get it picked up necessarily in the productivity numbers that we're getting out of the U.S.

Yeah.

So I think the first time I fully appreciated the power of the cell phone to transform my life was the first time I sent a wire from a chairlift.

Didn't

have to be glued to a laptop and a phone to, you know, make all that work.

And I thought, huh, you know, I could get used to this.