Editor's Synopsis
The Stanford Digital Economy Lab, directed by Erik Brynjolfsson, investigates how AI is reshaping work, productivity, and economic inequality. The Lab's research agenda stems from two urgent challenges Brynjolfsson identified in his 2019 testimony before the U.S. Congress: stagnant productivity growth and rising inequality. His policy recommendations span reinventing education, rebalancing capital and labor, investing in technology leadership, welcoming high-skill immigrants, and supporting entrepreneurship.
Since then, AI development has accelerated dramatically, and the Lab has produced influential research including "Generative AI at Work" (Brynjolfsson, Li, and Raymond 2025), one of the first major studies to measure generative AI's real-world impact on workplace productivity at scale. The page highlights several key publications covering topics such as the automation and augmentation potential of AI agents across the U.S. workforce, the risks of the "Turing Trap" in pursuing human-like AI, and the broader impact of AI on labor markets and SMEs.
With trillions of dollars now invested in AI as of 2026, the Lab emphasizes that productivity gains must follow. Brynjolfsson frames productivity as the fundamental determinant of national wealth and individual living standards, noting that technology alone is insufficient — complementary innovations in business practices, institutions, and policy are essential to realizing AI's full economic potential.
