IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2407.14333.html

Prompt Adaptation as a Dynamic Complement in Generative AI Systems

Author

Listed:
  • Eaman Jahani
  • Benjamin S. Manning
  • Joe Zhang
  • Hong-Yi TuYe
  • Mohammed Alsobay
  • Christos Nicolaides
  • Siddharth Suri
  • David Holtz

Abstract

As generative AI systems rapidly improve, a key question emerges: how do users adapt to these changes, and when does such adaptation matter for realizing performance gains? Drawing on theories of dynamic capabilities and IT complements, we study prompt adaptation--how users adjust their inputs in response to evolving model behavior--using a common experimental design applied to two preregistered tasks with 3,750 total participants who submitted nearly 37,000 prompts. We show that the importance of prompt adaptation depends critically on task structure. In a task with fixed evaluation criteria and an unambiguous goal, user prompt adaptation accounts for roughly half of the performance gains from a model upgrade. In contrast, in an open-ended creative task where the space of acceptable outputs is effectively unbounded and quality is subjective, performance improvements are driven primarily by model capability; prompt adaptation plays a limited role. We further show that automated prompt rewriting cannot generally substitute for human adaptation: when aligned with task objectives, it can modestly improve performance, but when misaligned, it can actively undermine the gains from model improvements. Together, these findings position prompt adaptation as a dynamic complement whose importance depends on task structure and system design, and suggest that without it, a substantial share of the economic value created by advances in generative models may go unrealized.

Suggested Citation

  • Eaman Jahani & Benjamin S. Manning & Joe Zhang & Hong-Yi TuYe & Mohammed Alsobay & Christos Nicolaides & Siddharth Suri & David Holtz, 2024. "Prompt Adaptation as a Dynamic Complement in Generative AI Systems," Papers 2407.14333, arXiv.org, revised Jan 2026.
  • Handle: RePEc:arx:papers:2407.14333
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2407.14333
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erik Brynjolfsson & Danielle Li & Lindsey Raymond, 2025. "Generative AI at Work," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 140(2), pages 889-942.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abendroth Dias Kulani & Arias Patricia & Bacco F. Manlio & Bassani Elias & Bertoletti Alice & Bertolini Lorenzo & Bertrand Astrid & Bili Danai & Boucher Philip & Cachia Romina & Ceresa Mario & Chaslot, 2025. "Generative AI Outlook Report," JRC Research Reports JRC142598, Joint Research Centre.
    2. Zara Contractor & Germ'an Reyes, 2025. "Generative AI in Higher Education: Evidence from an Elite College," Papers 2508.00717, arXiv.org.
    3. Christoph Riedl & Eric Bogert, 2024. "Effects of AI Feedback on Learning, the Skill Gap, and Intellectual Diversity," Papers 2409.18660, arXiv.org.
    4. Carvajal, Daniel & Franco, Catalina & Isaksson, Siri, 2024. "Will Artificial Intelligence Get in the Way of Achieving Gender Equality?," Discussion Paper Series in Economics 3/2024, Norwegian School of Economics, Department of Economics, revised 28 Apr 2025.
    5. Riccardo Zanardelli, 2025. "Navigating the safe harbor paradox in human-machine systems," Papers 2509.14057, arXiv.org, revised Jan 2026.
    6. Tatsuru Kikuchi, 2025. "Weather-Aware AI Systems versus Route-Optimization AI: A Comprehensive Analysis of AI Applications in Transportation Productivity," Papers 2507.17099, arXiv.org.
    7. Francesco Venturini, 2025. "Generative AI and Income Growth: Early Evidence on Global Data," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 31-46.
    8. Leonardo Banh & Gero Strobel, 2023. "Generative artificial intelligence," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
    9. Carlo Drago & Alberto Costantiello & Marco Savorgnan & Angelo Leogrande, 2025. "Macroeconomic and Labor Market Drivers of AI Adoption in Europe: A Machine Learning and Panel Data Approach," Economies, MDPI, vol. 13(8), pages 1-62, August.
    10. Alexander Cuntz & Carsten Fink & Hansueli Stamm, 2024. "Artificial Intelligence and Intellectual Property : An Economic Perspective," WIPO Economic Research Working Papers 77, World Intellectual Property Organization - Economics and Statistics Division.
    11. Lilia Patrignani, 2024. "Understanding digital trade," Questioni di Economia e Finanza (Occasional Papers) 841, Bank of Italy, Economic Research and International Relations Area.
    12. Kiran Tomlinson & Sonia Jaffe & Will Wang & Scott Counts & Siddharth Suri, 2025. "Working with AI: Measuring the Applicability of Generative AI to Occupations," Papers 2507.07935, arXiv.org, revised Dec 2025.
    13. David Rothschild, 2025. "Comment on "The Coasean Singularity? Demand, Supply, and Market Design with AI Agents"," NBER Chapters, in: The Economics of Transformative AI, National Bureau of Economic Research, Inc.
    14. Feiyang Xu & Poonacha K. Medappa & Murat M. Tunc & Martijn Vroegindeweij & Jan C. Fransoo, 2025. "AI-Assisted Programming Decreases the Productivity of Experienced Developers by Increasing the Technical Debt and Maintenance Burden," Papers 2510.10165, arXiv.org, revised Jan 2026.
    15. Amali Matharaarachchi & Wishmitha Mendis & Kanishka Randunu & Daswin De Silva & Gihan Gamage & Harsha Moraliyage & Nishan Mills & Andrew Jennings, 2024. "Optimizing Generative AI Chatbots for Net-Zero Emissions Energy Internet-of-Things Infrastructure," Energies, MDPI, vol. 17(8), pages 1-19, April.
    16. Carlo Drago & Alberto Costantiello & Marco Savorgnan & Angelo Leogrande, 2025. "Driving AI Adoption in the EU: A Quantitative Analysis of Macroeconomic Influences," Working Papers hal-05102974, HAL.
    17. Bohren, Noah & Hakimov, Rustamdjan & Lalive, Rafael, 2024. "Creative and Strategic Capabilities of Generative AI: Evidence from Large-Scale Experiments," IZA Discussion Papers 17302, Institute of Labor Economics (IZA).
    18. Anthony Harding & Juan Moreno-Cruz, 2024. "Watts and Bots: The Energy Implications of AI Adoption," Papers 2409.06626, arXiv.org.
    19. Andreas D. Landmark & Johan E. Ravn & Hans Y. Torvatn & Lisbeth Øyum, 2024. "Digital Transformations Through the Lens of the Collaborative, Co-Generative and Domesticative," Systemic Practice and Action Research, Springer, vol. 37(5), pages 537-548, October.
    20. Martin Baily & David Byrne & Aidan Kane & Paul Soto, 2025. "Generative AI at the Crossroads: Light Bulb, Dynamo, or Microscope?," Papers 2505.14588, arXiv.org, revised Sep 2025.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2407.14333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.