France's economic output per person, measured in terms of purchasing power parity, has fallen behind that of the United States over the past 30 years. According to World Bank data, in 2025, France’s GDP per capita was equivalent to 68% of the U.S. figure, down from 86% in 1995. This decline has been driven largely by slower productivity growth in France compared to the U.S. and other major economies. Between 1995 and 2025, French labor productivity grew by just 0.8% annually—far below the 4.3% growth rate in the period before 1995 and significantly lower than the 1.7% annual increase in the U.S. In recent years, France’s productivity growth has slowed further, reaching just 0.2% annually, lagging behind Germany, Spain, and the broader euro zone. Experts from the Conseil d'analyse économique (CAE), a French economic think tank, attribute the productivity gap largely to the slow adoption and use of new technologies. They estimate that 85% of the lag is due to new technologies, with 64% specifically tied to digital tools. The CAE notes that if France had matched U.S. levels of digital investment since 1995, the productivity gap between the two countries would have been significantly reduced—by 25 to 50% by 2005 and 15 to 30% by 2025. However, since the mid-2000s, the issue has shifted from merely investing in digital technologies to achieving a lower return on those investments in terms of productivity gains. French businesses and workers are also adopting artificial intelligence (AI) at a slower pace than their counterparts in other countries. Only 18% of French companies have implemented AI, compared to 20% across the European Union and 42% in Denmark. Among employees, just 28% report using AI in their work, compared to 43% in the U.S. Even among those who have access to AI tools, usage is lower in France—only 7% of working hours are affected by AI, compared to 13% in the U.S. To address these challenges, the CAE suggests a range of measures, including targeted public funding and tax incentives to promote the spread of digital tools. It also recommends appointing a "champion" of AI, a central contact point for companies to coordinate public policies, similar to models in the U.K., South Korea, and Singapore. The think tank also calls for stronger support for training and assistance to help companies identify practical uses for AI and build digital expertise. Additionally, the CAE proposes a long-term "France 2040" plan, estimated to contribute 0.2 percentage points to GDP annually, to drive innovation and growth. While the CAE acknowledges the importance of R&D tax credits for innovative companies, it suggests these incentives should be more targeted, potentially limiting benefits to smaller firms and reducing windfall gains for large corporations.