Cadence CEO warns U.S. economy risks decline without productivity gains; argues AI tools alone won't solve the problem

Anirudh Devgan, CEO of Cadence Design Systems (a major supplier of software for chip and electronics design), told Fortune that the U.S. national debt is unsustainable and the country must find ways to generate more economic output to support its existing spending.

While acknowledging the AI boom creates new tools for engineers and designers, Devgan argues that technology alone cannot change human behavior or decision-making — meaning AI will speed up work but won't fundamentally alter how people approach problems or manage resources.

For business professionals and investors, this signals that AI productivity gains have real limits: companies betting on AI to single-handedly boost revenue or cut costs may disappoint if the underlying business practices and workforce decisions don't change. The message: tools matter, but strategy and execution still require human judgment.