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A Quest for AI Knowledge

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  • Joshua S. Gans

Abstract

This paper examines how AI tools that excel at interpolating existing knowledge affect scientific research directions. Using a model where AI assists both scientists (S-AI) and decision-makers (DM-AI), it is shown that AI’s impact on research novelty is non-monotonic and depends critically on capability thresholds. While S-AI predictably encourages knowledge consolidation by reducing costs within established domains—potentially creating distinct pockets of deepening—DM-AI generates surprising effects. With limited capabilities, scientists ignore DM-AI. In a moderate regime, scientists “work to the AI,” constraining novelty to match AI’s operational range. Only with sufficiently advanced DM-AI do scientists unambiguously pursue more novel research. The strong complementarity between AI capabilities and knowledge gaps means that moderate AI may reduce research ambition. These findings challenge the conventional wisdom that interpolative AI uniformly pushes science toward consolidation, revealing a nuanced relationship between AI capabilities and scientific progress instead.

Suggested Citation

  • Joshua S. Gans, 2025. "A Quest for AI Knowledge," NBER Working Papers 33566, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:33566
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    Cited by:

    1. Benjamin Davies & Anirudh Sankar, 2025. "The value of conceptual knowledge," Papers 2509.09170, arXiv.org.
    2. Herbert Dawid & Philipp Harting & Hankui Wang & Zhongli Wang & Jiachen Yi, 2025. "Agentic Workflows for Economic Research: Design and Implementation," Papers 2504.09736, arXiv.org.

    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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