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Generative AI and the Reallocation of Time: Productivity, Leisure, and Fulfilling Work

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  • Donghyun Suh
  • Samil Oh

Abstract

Using a representative survey of Korean workers, we provide evidence on the adoption of Generative AI (GenAI) and how GenAI reallocates time at work. We find that 51.8\% of workers use GenAI for work and GenAI reduces working time by 3.8\%. However, these gains may not materialize in aggregate productivity statistics yet: the correlation between time savings and output changes is near zero. We show this disconnect arises because workers capture efficiency gains primarily as on-the-job leisure, rather than increasing their output. These findings suggest that standard productivity measures may understate AI's impact by missing non-pecuniary welfare channels.

Suggested Citation

  • Donghyun Suh & Samil Oh, 2026. "Generative AI and the Reallocation of Time: Productivity, Leisure, and Fulfilling Work," Papers 2602.12695, arXiv.org.
    • Handle: RePEc:arx:papers:2602.12695
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