How AI-Driven Productivity Gains Could Solve America’s Growing Debt Crisis
Key Takeaways
The post How AI-Driven Productivity Gains Could Solve America’s Growing Debt Crisis by Benzinga Contributors appeared first on Benzinga. Visit Benzinga to get more great content like this. Benzinga Mo...
Article Overview
Quick insights and key information
6 min read
Estimated completion
investment
Article classification
August 8, 2025
09:17 PM
Benzinga
Original publisher
Benzinga Money is a reader-supported publication
We may earn a commission from the advertisers associated with this article
Read our Advertiser Discloser
America has a debt blem, and recent policy is making it worse
President Trump’s “Big Beautiful Bill” is expected to add $2.4 trillion to the national debt over the next decade, and economists ject that the debt-to-GDP ratio will go from 100% to 120% in the same timespan
As a result, corporations and consumers will be stuck with high interest rates until something changes.That change might just come from artificial intelligence, one company argues
Range is an AI-powered wealth management platform for high earners that centralizes investments, taxes, estate plans, and more in one account
The platform uses advanced AI nology to der personalized financial guidance at fees 75-90% lower than traditional advisors, making expert wealth management more accessible
Today, Range serves nearly 2,000 clients managing over $6 billion in assets.Taresh Batra, Range’s vice president of Investments, says these AI-driven ductivity gains could be the key to accelerating GDP growth while bringing inflation and interest rates down. “Higher growth and lower interest rates as a result of AI could be a panacea for the ,” Batra says. ductivity is Key The nonpartisan Congressional Budget Office uses the ing formula to measure and forecast the country’s GDP, or Gross Domestic duct: Real GDP Growth = Labor Growth(x labor contribution) + Capital Growth(x capital contribution) + ductivity“Of these variables, changes in ductivity have the largest impact on GDP growth,” Batra says. “nological innovation has been the driver of ductivity over the course of history.”AI, Batra argues, has the potential to imve ductivity and benefit the economy in the coming years, similarly to how the dot-com boom did in the mid-1990s
Here’s how: Direct Economic Growth: With AI, companies and workers can be more ductive without requiring additional resources.More Jobs, Not Less: While AI may automate certain tasks, history shows that nology creates more jobs than it replaces
In fact, 60% of today’s jobs didn’t exist in 1940
The World Economic Forum jects AI will generate a net gain of 78 million new jobs this decade alone
Range itself exemplifies this trend by employing CFPs, CPAs, and CFAs who collaborate closely with AI engineers to build smarter financial tools.Increased Tax Revenues: “Higher ductivity usually leads to higher corporate fits, wages, and economic activity—all of which generate increased tax receipts,” Batra says. “More government revenue means less need to borrow.”Disinflationary Pressure: “Less government borrowing leads to lower inflationary pressure,” Batra says. “In addition, ductivity imvements reduce the cost of ducing goods and services, which slows down inflation.”Imved Debt Dynamics & Lower Rates: Lower inflation means the Federal Reserve can lower interest rates, which helps stimulate the economy and allows the government to spend less on interest expense and spend more money on the private sector
What’s more, we’re already seeing measurable ductivity gains in industries that have integrated AI tools into their workflow
Even if policymakers fail to rein in spending in the coming years, AI-driven ductivity gains in the private sector may allow us to “grow our way” out of fiscal distress. “If AI ders even modest incremental ductivity gains of 1-1.5% annually, the US could potentially maintain or reduce current debt-to-GDP levels despite continued spending growth,” Batra says
AI Is Transforming, Not Destroying the Job Market Yes, the rise of AI has resulted in people losing their jobs
This, however, is not a new phenomenon
Take farming, for example
Around 70% of people were employed in agriculture in the early 1800s, but that number is now less than 2% thanks to the creation of farming machines and other advancements
At the same time, nological innovations not only created new jobs to replace the ones lost
They added new roles that previously never existed. “Remarkably, 60% of the jobs people are employed in today didn't exist in 1940,” Batra says. “That means nearly 90% of employment growth over the last 80 years resulted from nology creating entirely new of work.”The World Economic Forum’s Future of Jobs Report estimates that AI and related nologies will create a net gain of 78 million new roles this decade.Range is living of of this
They’ve hired CFPs, CPAs, and CFAs as critical subject matter experts to help their AI engineers build and validate their platform. “These aren't traditional roles—they represent the emergence of new types of knowledge workers who combine domain expertise with nological fluency,” Batra says
How You Could Bring the Power of AI Into Your Wealth Management With RangeIn just four short years, Range has signed up almost 2,000 high income members and advises them on more than $6 billion in assets
Currently in beta, Range’s prietary AI engine is capable of dering financial insights and guidance in seconds, potentially allowing you to capitalize on opportunities and avoid any potential pitfalls — for example, if you should buy an investment perty or if you can retire early based on your complete financial picture Range also operates on a flat-fee pricing model and offers portfolio management with 0% Assets Under Management fees, so you won’t pay more as your net worth continues to grow
Set up a 1:1 call today Disclaimers Please be advised that alternative investments carry a risk of monetary loss
Neither Benzinga nor its staff recommends that you buy, sell, or hold any security
We do not offer investment advice, personalized or otherwise
All information contained on this website is vided as general ary for informative and entertainment purposes and does not constitute investment advice
Benzinga will not accept liability for any loss or damage, including without limitation to, any loss of fit, which may arise directly or indirectly from use of or reliance on this information, whether specifically stated in the above Terms of Service or otherwise
Benzinga recommends that you conduct your own due diligence and consult a certified financial fessional for personalized advice your financial situation.
Related Articles
More insights from FinancialBooklet