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Task-interdependencies between Generative AI and Workers

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  • Walkowiak, Emmanuelle

Abstract

Our paper formalizes a production function to give microeconomic foundations for the adoption of Generative AI (GAI) within workplaces. The production function accounts for task-interdependencies, the worker-GAI interaction and indistinguishability between human-created and AI-generated outputs. We show that workers and GAI represent two distinct but interdependent sides of the production, that jointly generate a network externality in learning that drives productivity. We find that in open learning organizations favoring the worker-GAI interaction, GAI should be matched to workers based on their ability to detect errors. We analyze configurations where the worker-GAI interaction is limited, referred as closed learning organizations, including firms banning the use of GAI, technological superclusters and emergence of small entrepreneurs innovating with GAI.

Suggested Citation

  • Walkowiak, Emmanuelle, 2023. "Task-interdependencies between Generative AI and Workers," Economics Letters, Elsevier, vol. 231(C).
    • Handle: RePEc:eee:ecolet:v:231:y:2023:i:c:s0165176523003403
    DOI: 10.1016/j.econlet.2023.111315
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    References listed on IDEAS

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    1. Michael Kremer, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 551-575.
    2. Erik Brynjolfsson & Danielle Li & Lindsey Raymond, 2023. "Generative AI at Work," Papers 2304.11771, arXiv.org.
    3. Tyna Eloundou & Sam Manning & Pamela Mishkin & Daniel Rock, 2023. "GPTs are GPTs: An Early Look at the Labor Market Impact Potential of Large Language Models," Papers 2303.10130, arXiv.org, revised Aug 2023.
    4. repec:dau:papers:123456789/1902 is not listed on IDEAS
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    Cited by:

    1. Humaid Al Naqbi & Zied Bahroun & Vian Ahmed, 2024. "Enhancing Work Productivity through Generative Artificial Intelligence: A Comprehensive Literature Review," Sustainability, MDPI, vol. 16(3), pages 1-37, January.

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