French Productivity Stagnates Despite AI Adoption, CAE Report Finds

A French economic analysis council (CAE) reports that hourly labor productivity grew only 0.2% annually from 2015-2025, versus 1.7% in 1995-2005, despite increased digital investment. The report suggests that technology adoption alone is insufficient; firms face coordination, information, and supplier dependence issues. This challenges the assumption that AI investment automatically boosts productivity, with implications for growth forecasts.