Gen AI: Measurable Potential to Transform the Future of Work

In the study, consultants using AI completed 12.2% more tasks on average, completed tasks 25.1% more quickly, and produced more than 40% higher quality results compared to a control group. However, for tasks outside the frontier, consultants using AI were 19 percentage points less likely to produce correct solutions.

The study introduces the concept of a "jagged technological frontier," where AI excels in some tasks but falls short in others. Within this frontier, AI can be a game-changer, but outside of it, the AI output can be less reliable, leading to an increase in errors and a degradation in human performance. This highlights the importance of understanding the capabilities and limitations of AI and carefully selecting the tasks to which AI is applied.

The study identified two distinct patterns of AI use in the workplace: "Centaurs" and "Cyborgs." Centaurs delineate tasks of the best perceived fit between AI and themselves, while Cyborgs intertwine their efforts with AI at the very frontier of capabilities, making it difficult to demarcate whether the output was produced by the human or the AI.

The integration of AI into the workplace raises ethical and social concerns. AI can potentially widen inequality, disproportionately affecting some workers and concentrating benefits among a few. Organizations must carefully consider which tasks to automate and which to leave to humans, ensuring that the benefits of AI technologies are shared across society.

It’s inevitable that as AI technology continues to evolve and improve, AI tools like ChatGPT, Claude and GPT-4 are likely to become even more powerful. However, AI tools are not a silver bullet and need to be used within the boundary of their capabilities. Highly skilled workers need to continue to validate AI outputs and exert cognitive effort and expert judgment when working with AI.

It's helpful to think of AI as a highly skilled but specialized worker. Just like a world-class pianist can create beautiful music but may struggle to fix a car, AI excels at certain tasks but struggles with others. The key to getting the most out of AI, like getting the most out of a highly skilled worker, is to understand its strengths and weaknesses, and to assign it tasks that play to its strengths.

As we look forward to 2024, it's clear that the businesses that effectively leverage these tools will be the ones that stay competitive and find new ways to boost revenue and improve customer experiences.

Sources:

[1] Harvard Business School Working Paper 24-013. “Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality.” September 2023.