Franklin Templeton CEO Questioned AI Productivity Impact

Jenny Johnson noted recent productivity gains have stemmed from existing digital technologies rather than AI.

Updated on Sept. 24, 2026 in Economic Indicators

Isometric editorial illustration of clean, metallic server racks arranged in a structured grid on a smooth floor. — Franklin Templeton CEO Jenny Johnson noted that recent U.S. economic productivity gains are primarily driven by existing digital infrastructure rather than AI integration. AI Illustration. Upload story photo >

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Do you believe current heavy investment in AI is already delivering measurable improvements to the economy?

Franklin Templeton CEO Jenny Johnson stated that artificial intelligence has not yet meaningfully improved current U.S. productivity. She credited earlier digital advancements and cloud computing for recent economic performance gains instead of AI integration.

Why it matters

While massive capital is flowing into AI infrastructure, systemic economic integration remains limited as businesses prioritize existing processes. Strong consumer spending and corporate earnings continue to sustain the market despite the lack of measurable AI-driven productivity growth.

U.S. nonfarm-business productivity rose 2.2% year over year in Q2 2026, building on a 2.5% rate observed in late 2025. It remains unknown how long the transition period will last before AI generates statistically significant economic impact.

The players

Jenny Johnson

She serves as the CEO of Franklin Templeton, an investment firm that manages nearly $1.8 trillion in assets.

Franklin Templeton

This global investment firm manages nearly $1.8 trillion in assets and provides research on systemic economic trends.

The details

Companies are currently funneling significant capital into AI chips and data centers, yet widespread adoption remains in the early stages. While AI was mentioned in over 65% of S&P 500 second-quarter earnings calls, only 18% of U.S. businesses had adopted the technology by the end of 2025.

By the end of 2025, 18% of U.S. businesses had adopted AI.
Quarterly annualized productivity growth reached 0.8% in Q1 2026.
Nonfarm-business productivity rose 2.2% year over year in Q2 2026.
Single-A corporate spreads stood at 65 basis points on September 22, 2026.
Big tech companies are expected to spend $630 billion on AI infrastructure in 2026.

Macro View

The current skepticism regarding AI productivity mirrors historical technological adoption cycles where capital investment precedes actual efficiency gains. This slow integration follows a pattern set by the 2026 PwC CEO survey findings on AI regarding the limited financial impact of current technology investments.

Readers should recognize that while major tech companies are spending $630 billion on infrastructure, this does not yet translate to lower costs or improved services for the average consumer. Economic growth remains driven by traditional factors like consumer spending rather than a widespread AI-led efficiency boom.

The takeaway

Investments in new technologies often follow a path of infrastructure building long before they yield measurable productivity improvements. Investors should focus on existing drivers like record corporate earnings and consumer spending while monitoring the long-term integration of AI into the economy.