IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_11479.html

Generative AI and the Nature of Work

Author

Listed:
  • Manuel Hoffmann
  • Sam Boysel
  • Frank Nagle
  • Sida Peng
  • Kevin Xu

Abstract

Recent advances in artificial intelligence (AI) technology demonstrate considerable potential to complement human capital intensive activities. While an emerging literature documents wide-ranging productivity effects of AI, relatively little attention has been paid to how AI might change the nature of work itself. How do individuals, especially those in the knowledge economy, adjust how they work when they start using AI? Using the setting of open source software, we study individual level effects that AI has on task allocation. We exploit a natural experiment arising from the deployment of GitHub Copilot, a generative AI code completion tool for software developers. Leveraging millions of work activities over a two year period, we use a program eligibility threshold to investigate the impact of AI technology on the task allocation of software developers within a quasi-experimental regression discontinuity design. We find that having access to Copilot induces such individuals to shift task allocation towards their core work of coding activities and away from non-core project management activities. We identify two underlying mechanisms driving this shift - an increase in autonomous rather than collaborative work, and an increase in exploration activities rather than exploitation. The main effects are greater for individuals with relatively lower ability. Overall, our estimates point towards a large potential for AI to transform work processes and to potentially flatten organizational hierarchies in the knowledge economy.

Suggested Citation

  • Manuel Hoffmann & Sam Boysel & Frank Nagle & Sida Peng & Kevin Xu, 2024. "Generative AI and the Nature of Work," CESifo Working Paper Series 11479, CESifo.
  • Handle: RePEc:ces:ceswps:_11479
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/cesifo1_wp11479.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Autor, 2024. "Applying AI to Rebuild Middle Class Jobs," NBER Working Papers 32140, National Bureau of Economic Research, Inc.
    2. Daron Acemoglu & David Autor & Jonathon Hazell & Pascual Restrepo, 2022. "Artificial Intelligence and Jobs: Evidence from Online Vacancies," Journal of Labor Economics, University of Chicago Press, vol. 40(S1), pages 293-340.
    3. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 339-376.
    4. Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio, 2021. "Artificial intelligence and productivity: an intangible assets approach," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(3), pages 435-458.
    5. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    6. Frank Nagle, 2018. "Learning by Contributing: Gaining Competitive Advantage Through Contribution to Crowdsourced Public Goods," Organization Science, INFORMS, vol. 29(4), pages 569-587, August.
    7. Nicholas Crafts, 2021. "Artificial intelligence as a general-purpose technology: an historical perspective," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(3), pages 521-536.
    8. Czarnitzki, Dirk & Fernández, Gastón P. & Rammer, Christian, 2023. "Artificial intelligence and firm-level productivity," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 188-205.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matthew O. Jackson & Qiaozhu Me & Stephanie W. Wang & Yutong Xie & Walter Yuan & Seth Benzell & Erik Brynjolfsson & Colin F. Camerer & James Evans & Brian Jabarian & Jon Kleinberg & Juanjuan Meng & Se, 2025. "AI Behavioral Science: A Framework and Agenda," Papers 2509.13323, arXiv.org, revised Oct 2026.
    2. Fasheng Xu & Jing Hou & Wei Chen & Karen Xie, 2025. "Generative AI and Organizational Structure in the Knowledge Economy," Papers 2506.00532, arXiv.org, revised Mar 2026.
    3. Maximilian Schaefer, 2025. "When Should we Expect Non-Decreasing Returns from Data in Prediction Tasks?," Papers 2503.03602, arXiv.org.
    4. Piyush Gulati & Arianna Marchetti & Victoria Sevcenko & Phanish Puranam, 2025. "How Generative AI Adoption Alters the Demand for Cognitive and Social Skills Within Roles: A Skill-Centric Analysis," Papers 2503.09212, arXiv.org, revised Aug 2026.
    5. Auyon Siddiq & Niuniu Zhang, 2026. "Human Capital, AI, and Labor Commoditization," Papers 2606.21880, arXiv.org, revised Jun 2026.

    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. Jensen, Mathias Fjællegaard & Schneider, Cédric, 2026. "Digital skill adoption and employment dynamics: Evidence from matched vacancy-employer–employee data," Research Policy, Elsevier, vol. 55(5).
    2. Jaccoud, Florencia, 2025. "Robots & AI Exposure and Wage Inequality," MERIT Working Papers 2025-013, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Flavio Calvino & Chiara Criscuolo & Luca Fontanelli & Lionel Nesta & Elena Verdolini, 2024. "The role of human capital for AI adoption: Evidence from French firms," CEP Discussion Papers dp2055, Centre for Economic Performance, LSE.
    4. Fontanelli, Luca & Calvino, Flavio & Criscuolo, Chiara & Nesta, Lionel & Verdolini, Elena, 2025. "Human after all: Occupations at the core of AI adoption," Labour Economics, Elsevier, vol. 95(C).
    5. Florencia Jaccoud, 2025. "Robots & AI exposure and wage inequality: a within occupation approach," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(4), pages 1035-1090, December.
    6. Torrent-Sellens, Joan, 2024. "Digital transition, data-and-tasks crowd-based economy, and the shared social progress: Unveiling a new political economy from a European perspective," Technology in Society, Elsevier, vol. 79(C).
    7. Gao, Fei & Peng, Benhong & Zhao, Yinyin & Wei, Guo, 2026. "Tech for Good: The employment effects of policy-driven artificial intelligence development," International Review of Economics & Finance, Elsevier, vol. 105(C).
    8. Hakan Yilmazkuday, 2025. "Artificial intelligence and labor markets: evidence from google trends," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 49(4), pages 1078-1093, December.
    9. Marydas, Sneha & Mathew, Nanditha & De Marzo, Giordano & Pietrobelli, Carlo, 2025. "Digital Technologies, Hiring, Training, and Firm Outcomes," MERIT Working Papers 2025-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Enrico Maria Fenoaltea & Dario Mazzilli & Aurelio Patelli & Angelica Sbardella & Andrea Tacchella & Andrea Zaccaria & Marco Trombetti & Luciano Pietronero, 2024. "Follow the money: a startup-based measure of AI exposure across occupations, industries and regions," Papers 2412.04924, arXiv.org, revised Dec 2024.
    11. Martin Lábaj & Tomáš Oleš & Gabriel Procházka, 2025. "Impact of robots and artificial intelligence on labor and skill demand: evidence from the UK," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(4), pages 953-1001, December.
    12. Anastasios Evgenidis & Apostolos Fasianos, 2025. "AI news shocks and the macroeconomy: evidence from UK patent data," IFS Working Papers W25/48, Institute for Fiscal Studies.
    13. Aísa, Rosa & Cabeza, Josefina, 2025. "Artificial intelligence: Redefining the retirement pattern," Research in Economics, Elsevier, vol. 79(3).
    14. Minniti, Antonio & Prettner, Klaus & Venturini, Francesco, 2024. "Unslicing the pie: AI innovation and the labor share in European regions," Department of Economics Working Paper Series 369, WU Vienna University of Economics and Business.
    15. Saam Marianne, 2024. "The Impact of Artificial Intelligence on Productivity and Employment – How Can We Assess It and What Can We Observe?," Intereconomics: Review of European Economic Policy, Paradigm, vol. 59(1), pages 22-27, February.
    16. Kristina McElheran & J. Frank Li & Erik Brynjolfsson & Zachary Kroff & Emin Dinlersoz & Lucia Foster & Nikolas Zolas, 2024. "AI adoption in America: Who, what, and where," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 33(2), pages 375-415, March.
    17. Demombynes, Gabriel & Langbein, Jorg Gero & Weber, Michael, 2025. "The Exposure of Workers to Artificial Intelligence in Low- and Middle-Income Countries," Policy Research Working Paper Series 11057, The World Bank.
    18. Prasanna B. Tambe, 2026. "Reskilling the Workforce for AI: Domain Expertise and Algorithmic Literacy," Management Science, INFORMS, vol. 72(1), pages 515-537, January.
    19. Sun, Quan & Huang, Minjie, 2026. "Firm-level evidence on AI-driven output expansion and productivity in China," Socio-Economic Planning Sciences, Elsevier, vol. 103(C).
    20. Erdem Dogukan Yilmaz & Christian Peukert, 2024. "Who Benefits from AI? Project-Level Evidence on Labor Demand, Operations and Profitability," CESifo Working Paper Series 11321, CESifo.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • J00 - Labor and Demographic Economics - - General - - - General

    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:ces:ceswps:_11479. 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: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    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.