AI Growth and Screen Bans in Schools

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Happy Thursday! In today’s newsletter, we examine public trust in official economic statistics, AI’s impact on the economy, and screen bans in K–12 schools.

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1. The Consequences of Declining Trust in Statistics ([link removed] )

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Topline: The American public’s trust in official economic statistics declined following the August 2025 removal of the Bureau of Labor Statistics (BLS) commissioner amid controversial allegations that the agency’s data had been manipulated. AEI’s Michael R. Strain, Duncan Hobbs, Nicholas Bloom, and Erica L. Groshen argue ([link removed] ) that the sudden erosion of confidence in federal statistics reduced the US GDP by roughly $20 billion.

Show Me the Data: Following the dismissal, the Economic Policy Uncertainty Index, which tracks the proportion of newspaper articles discussing economic policy uncertainty, spiked dramatically. The isolated impact of the commissioner’s removal was an increase in the index by roughly 22 points, or 9 percent.

The Value of Economic Infrastructure: The BLS, along with agencies such as the Census Bureau and Bureau of Economic Analysis, provides information and data that allow markets and governments to function effectively. This information steers monetary policy, guides fiscal decisions, and supports private-sector planning. Protecting these agencies’ credibility, independence, and technical capacity is essential for US economic infrastructure.

“Policy debates about infrastructure typically focus on roads, ports, energy systems, or broadband networks. But statistical agencies also provide foundational infrastructure for modern economies.”

—Michael R. Strain ([link removed] ) et al.

More on Economic Statistics
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2. AI Advancement ([link removed] )

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Topline: Artificial intelligence continues to permeate politics, businesses, and society worldwide. AI’s full potential remains to be seen, but optimism about AI progress from the start of 2026 to the present has remained steady, observes ([link removed] ) AEI’s James Pethokoukis.

Technological Advancement: The generative AI economy has produced $110 billion in revenue in the past 12 months and is now on pace to reach over $175 billion annually. More businesses are incorporating generative AI into the workplace, but it is still too early for conclusive bottom-line results about productive use of the technology.

Compounding Progress: AI has not yet provided a productivity super-boom or miracle material to skyrocket the economy. However, it continues to make incremental economic advances—such as an invoice agent at Google on track to save the company $200 million annually—that well may lead to an economic revolution in the long run.

“No, none of these are miracle materials, miracle cures, or productivity superbooms. Still, of such incremental advances an economic revolution is built. And those other things might still be on their way.”

—James Pethokoukis ([link removed] )

More on Artificial Intelligence
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3. School Screen Bans ([link removed] )

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Topline: Banning student cell phones is one of the most popular school reforms of the moment, but AEI’s Robert Pondiscio warns ([link removed] ) that the push for phone bans could feed a broader anti-screen movement. While phone bans remove an obstacle to student attention, an extensive ban on all screens in classrooms threatens key learning tools.

No-Screen Zones: Teacher reports indicate that when schools adopted lockable phone pouch policies using technology like Yondr, students’ personal phone use dropped roughly 80 percent ([link removed] ) , but test scores and attendance remained largely unaffected. At least a dozen states, including Alabama, Tennessee, Utah, and Virginia, have legislation pending to restrict the use of technology in K–12 instruction and assessment. However, not all screens are the same, and the useful question is not whether a tool or lesson involves a screen but how the screen changes a student’s focus and attention.

The AI Question Ahead: A wave of technological abstinence risks oversimplifying an important conversation about artificial intelligence in education. AI tools represent a great education opportunity and a steep challenge for schools, as the technology presents possible solutions to close stubborn and persistent gaps in student achievement while opening the door for cheating and weaker student engagement.

“If skepticism hardens into technological abstinence—if all screens come to be viewed as equally harmful—we risk oversimplifying an important conversation about AI in education. We could miss out on an opportunity to close stubborn and persistent gaps in student achievement born of unequal educational opportunities.”

—Robert Pondiscio ([link removed] )

More on Technology in Classrooms
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Dive into More Data

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The Funders Behind American Higher Education ([link removed] )

More on Higher Education Funding
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The Economic Impacts of Depopulation ([link removed] )

More on Population Growth
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Special thanks to Rosalie Blacklock and Drew Kirkpatrick.

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