Generative AI, such as OpenAI’s ChatGPT, is transforming the way people work and increasing efficiency. The legal profession is one example where the use of AI is freeing up lawyers to do more of what they do well. A study by MIT researchers found that workers were 37% more efficient using ChatGPT. Another study by Stanford University and the National Bureau of Economic Research found a 14% productivity increase when customer service agents used generative AI-based conversational assistants. Generative AI is already impacting workers, but there is debate about whether it will replace or augment human labor. AI executives believe that humans will become ten times more effective at what they do. However, the MIT study suggests that ChatGPT largely substitutes for worker effort rather than complementing workers’ skills, potentially causing a decrease in demand for workers. The researchers also point out that their study has limitations and cannot account for many other factors that will weigh in labor markets and production systems as they adapt to new technologies like ChatGPT.
