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Generative AI’s Impact on Student Achievement and Implications for Worker Productivity

Author

Listed:
  • Naomi Hausman
  • Oren Rigbi
  • Sarit Weisburd

Abstract

Student use of Artificial Intelligence (AI) in higher education is reshaping learning and redefining the skills of future workers. Using student-course data from a top Israeli university, we examine the impact of generative AI tools on academic performance. Comparisons across more and less AI-compatible courses before and after ChatGPT’s introduction show that AI availability raises grades, especially for lower-performing students, and compresses the grade distribution, eroding the signal value of grades for employers. Evidence suggests gains in AI-specific human capital but possible losses in traditional human capital, highlighting benefits and costs AI may impose on future workforce productivity.

Suggested Citation

  • Naomi Hausman & Oren Rigbi & Sarit Weisburd, 2025. "Generative AI’s Impact on Student Achievement and Implications for Worker Productivity," CESifo Working Paper Series 11843, CESifo.
  • Handle: RePEc:ces:ceswps:_11843
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp11843.pdf
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    More about this item

    Keywords

    generative AI; student achievement; worker productivity; higher education; human capital.;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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