Enterprise technology spending in the United States has been growing by 8 percent per year on average since 2022.1 This surge is not surprising, given the increasing role technology plays in how businesses function and create value. The issue lies in what companies are getting for that spend, and the track record on that score is mixed. While analysis linking tech spend to labor productivity is notoriously inexact, labor productivity has grown by close to 2 percent over the same period of time (Exhibit 1).2
