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Efficient Inefficiency: Organisational challenges of realising economic gains from AI

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  • Mills, Stuart
  • Spencer, David A.

Abstract

Organisations are increasingly using artificial intelligence (AI). Where AI performs productive tasks more efficiently than humans, organisations will benefit economically through increases in productivity. However, if AI is deployed to undertake unproductive, superfluous tasks, the efficiency benefits will be reduced, even if these tasks are performed more efficiently than a human could, because the said tasks are inefficient to begin with. We call this eventuality ‘efficient inefficiency.’

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  • Mills, Stuart & Spencer, David A., 2025. "Efficient Inefficiency: Organisational challenges of realising economic gains from AI," Journal of Business Research, Elsevier, vol. 189(C).
    • Handle: RePEc:eee:jbrese:v:189:y:2025:i:c:s0148296324006325
    DOI: 10.1016/j.jbusres.2024.115128
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