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Generative AI and the Nature of Work by Manuel Hoffmann, Sam Boysel, Frank Nagle, Sida Peng, Kevin Xu :: SSRN
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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.</span> <P></p> </div> <center> </center> <p><strong>Keywords:</strong> Generative Artificial Intelligence, Digital Work, Open Source Software, Knowledge Economy</p> <div id="ssrn-paper-declarations-widget" data-papers-api-url="https://api.ssrn.com/papers" data-abstract-id="5007084"></div> <script type="module" src="https://cdn.ssrn.com/ssrn-paper-declarations-widget/app.bundle.js"></script> <p><strong>JEL Classification:</strong> H4, O3, J0</p> <p> <strong class="hidden-xs hidden-sm">Suggested Citation:</strong> <a href="#" class="suggested-citation-btn btn-link visible-xs visible-sm">Suggested Citation<i class="icon icon-gizmo-navigate-right"></i></a> </p> <div id="selectable" onclick="selectText('selectable')" class="suggested-citation"> Hoffmann, Manuel and Boysel, Sam and Nagle, Frank and Peng, Sida and Xu, Kevin, Generative AI and the Nature of Work (October 27, 2024). Harvard Business School Strategy Unit Working Paper No. 25-021, Harvard Business Working Paper No. No. 25-021, Available at SSRN: <a href="https://ssrn.com/abstract=5007084" target="_blank">https://ssrn.com/abstract=5007084</a> or <a href="https://dx.doi.org/10.2139/ssrn.5007084" class="textlink" target="_blank">http://dx.doi.org/10.2139/ssrn.5007084 </a> </div> <a href="#" class="show-contact-btn btn-link" role="button" aria-label="Show contact information"> <span aria-hidden="true"></span><i class="icon icon-gizmo-navigate-right" aria-hidden="true"></i> </a> <div class="contact-information"> <div class="author"> <h3><a href="https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=6426337" target='_blank'>Manuel Hoffmann (Contact Author)</a></h3> <div class="block-quote"> <h4>Harvard Business School ( <a href="javascript:void(0)" onClick=" appData.push({ event: 'conversionDriverClick', conversionDriver: { name: 'article-page:email' } }); window.open('GetAuthorEmail.cfm?abid=5007084&pag=papers','Author_Email','toolbar=no,menubar=no,scrollbars=yes,resizable=no,width=700,height=470')">email</a> )</h4> </div> </div> <div class="author"> <h3><a href="https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=7149525" target='_blank'>Sam Boysel</a></h3> <div class="block-quote"> <h4>Harvard Business School ( <a href="javascript:void(0)" onClick=" appData.push({ event: 'conversionDriverClick', conversionDriver: { name: 'article-page:email' } }); window.open('GetAuthorEmail.cfm?abid=5007084&pag=papers','Author_Email','toolbar=no,menubar=no,scrollbars=yes,resizable=no,width=700,height=470')">email</a> )</h4> </div> </div> <div class="author"> <h3><a href="https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2047070" target='_blank'>Frank Nagle</a></h3> <div class="block-quote"> <a href="http://www.hbs.edu/Pages/default.aspx" target="_blank"><img class="logo" src="https://papers.ssrn.com/Organizations/OrgBrandings/190075_11390.gif" alt="Harvard Business School"></a> <h4>Harvard Business School ( <a href="javascript:void(0)" onClick=" appData.push({ event: 'conversionDriverClick', conversionDriver: { name: 'article-page:email' } }); window.open('GetAuthorEmail.cfm?abid=5007084&pag=papers','Author_Email','toolbar=no,menubar=no,scrollbars=yes,resizable=no,width=700,height=470')">email</a> )</h4> <p> <span>Soldiers Field Road<br>Morgan 270C<br>Boston, MA 02163<br>United States<br></span> </p> </div> </div> <div class="author"> <h3><a href="https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=6516669" target='_blank'>Sida Peng</a></h3> <div class="block-quote"> <h4>Microsoft Corporation ( <a href="javascript:void(0)" onClick=" appData.push({ event: 'conversionDriverClick', conversionDriver: { name: 'article-page:email' } }); window.open('GetAuthorEmail.cfm?abid=5007084&pag=papers','Author_Email','toolbar=no,menubar=no,scrollbars=yes,resizable=no,width=700,height=470')">email</a> )</h4> </div> </div> <div class="author"> <h3><a href="https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=7154799" target='_blank'>Kevin Xu</a></h3> <div class="block-quote"> <h4>GitHub, Inc. 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