This research blog highlights Microsoft's development of the Phi-2 model, a 2.7 billion-parameter language model that demonstrates exceptional performance in reasoning and language understanding, rivaling much larger models by leveraging high-quality training data and innovative scaling techniques.

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.