Many believe artificial intelligence (AI) will be the next general-purpose technology that will boost productivity growth. Indeed, AI adoption is already happening at breathtaking speed – in virtually all countries and industries. While AI is poised to have a profound impact on the economy, relatively little is known about its impact on employment and output across various industries, as well as its implications for growth and inflation in both the short and long run. Contribution We study the economic impact of AI using a macroeconomic multi-sector model calibrated to an index of industry exposure to AI. We answer ... (full story)