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Equation 16 · Part 6 · The Jagged Frontier Fallacy: Deconstructing Harvard's Canonical AI Productivity Study

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πs=cL(s)−[cdraft(s)+caudit(s)]cL(s)≪0.40.\pi_s = \frac{c_L(s) - [c_{\text{draft}}(s) + c_{\text{audit}}(s)]}{c_L(s)} \ll 0.40.
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What this part means

The expressions on both sides represent the same quantity under the stated assumptions.

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The equals sign connects the complete expression on the left with the complete expression on the right. Both sides must have compatible units.

The passage around this formula

When applied to the Harvard BCG findings, Acemoglu’s macroeconomic framework reveals why the study’s 40% performance gains cannot be translated linearly into organizational throughput: πs=cL(s)−[cdraft(s)+caudit(s)]cL(s)≪0.40\pi_s = \frac{c_L(s) - [c_{\text{draft}}(s) + c_{\text{audit}}(s)]}{c_L(s)} \ll 0.40. Using rigorous baseline accounting across the United States economy, Acemoglu estimates that generative artificial intelligence will affect no more than 4.6% of total tasks over a ten-year horizon, producing an aggregate TFP increase of less than 0.71% cumulatively over a decade (approximately 0.07% annually) [ 2 ] . The breathless projections of 40% corporate workforce expansion derived from micro-task consulting studies collapse when subjected to rigorous general-equilibrium accounting.

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An equals sign says that the expression on its left and the expression on its right have the same value under the stated definitions and assumptions.

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Sources cited in the surrounding passage

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