The recent emergence of generative artificial intelligence (AI) has raised questions around whether we are at the brink of a rapid acceleration in task automation that will significantly save on labor costs, raise labor productivity, and increase the pace of economic growth. In this Global Economics Analyst, we provide an overview of AI’s potential macroeconomic impacts, and argue that if AI delivers on its promised capabilities, it has the potential to significantly disrupt labor markets and spur global productivity growth over the coming decades.