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Writer's pictureSkills Lab

The ABCs of working with AI

Updated: Oct 28, 2024

Full paper: here


Overview

In the future, many workers will use AI tools. How will these tools affect productivity and inequality in the labor market? We use a carefully controlled lab study to illustrate two factors that will likely matter: ability (how good workers are at a particular task when they're working without AI help) and calibration (do workers have accurate beliefs about what they do/don't know).


Key Empirical Findings

  • The impact of AI assistance depends on whether participants are calibrated about their own abilities.

  • Holding baseline ability fixed, a one standard deviation increase in calibration increases the average treatment effect of AI assistance by 20 percent

  • Participants who gain the most from AI help are those who are less skilled at the task, and are aware of their limitations

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