First Empirical Study of the Real-World Economic Effects of New AI Systems

An anonymous reader quotes a report from NPR: Back in 2017, Brynjolfsson published a paper (PDF) in one of the top academic journals, Science, which outlined the kind of work that he believed AI was capable of doing. It was called "What Can Machine Learning Do? Workforce Implications." Now, Brynjolfsson says, "I have to update that paper dramatically given what's happened in the past year or two." Sure, the current pace of change can feel dizzying and kinda scary. But Brynjolfsson is not catastrophizing. In fact, quite the opposite. He's earned a reputation as a "techno-optimist." And, recently at least, he has a real reason to be optimistic about what AI could mean for the economy. Last week, Brynjolfsson, together with MIT economists Danielle Li and Lindsey R. Raymond, released what is, to the best of our knowledge, the first empirical study of the real-world economic effects of new AI systems. They looked at what happened to a company and its workers after it incorporated a version of ChatGPT, a popular interactive AI chatbot, into workflows. What the economists found offers potentially great news for the economy, at least in one dimension that is crucial to improving our living standards: AI caused a group of workers to become much more productive. Backed by AI, these workers were able to accomplish much more in less time, with greater customer satisfaction to boot. At the same time, however, the study also shines a spotlight on just how powerful AI is, how disruptive it might be, and suggests that this new, astonishing technology could have economic effects that change the shape of income inequality going forward. Brynjolfsson and his colleagues described how an undisclosed Fortune 500 company implemented an earlier version of OpenAI's ChatGPT to assist its customer support agents in troubleshooting technical issues through online chat windows. The AI chatbot, trained on previous conversations between agents and customers, improved the performance of less experienced agents, making them as effective as those with more experience. The use of AI led to an, on average, 14% increase in productivity, higher customer satisfaction ratings, and reduced turnover rates. However, the study also revealed that more experienced agents did not experience significant benefits from using AI. The findings suggest that AI has the potential to improve productivity and reduce inequality by benefiting workers who were previously left behind in the technological era. Nonetheless, it raises questions about how the benefits of AI should be distributed and whether it may devalue specialized skills in certain occupations. While the impact of AI is still being studied, its ability to handle non-routine tasks and learn on the fly indicates that it could have different effects on the job market compared to previous technologies.

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