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Organizational Technology Ladders: Remote Work and Generative AI Adoption

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  • Gregor Schubert

Abstract

This study proposes that firms move along an "organizational technology ladder": adopting one technology transforms hiring and work processes and builds skills and organizational capital that change the cost of adopting subsequent technologies. I study how firms' adoption of remote work technology during the COVID-19 period shaped later uptake of generative AI. Using U.S. job-posting data and an instrumental-variables strategy based on predicted differences in labor-market pressure to offer remote work, I estimate that a 10 percentage point increase in remote hiring in 2021-2022 increases the share of job postings mentioning generative AI in 2023-2024 by 0.4 percentage points across firms and 0.7 percentage points across occupations within firms. I provide evidence on mechanisms consistent with a technology-ladder channel: remote work adoption shifts hiring toward technical and managerial capabilities that predict faster conversion of generative AI exposure into adoption. Firms with return-to-office mandates---interpreted as revealing low remote productivity---exhibit a substantially larger response of generative AI adoption to remote work, consistent with an organizational frictions channel.

Suggested Citation

  • Gregor Schubert, 2026. "Organizational Technology Ladders: Remote Work and Generative AI Adoption," Papers 2608.11626, arXiv.org.
    • Handle: RePEc:arx:papers:2608.11626
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