Human-AI Productivity Paradoxes: Modeling the Interplay of Skill, Effort, and AI Assistance (opens in new tab)

Generative Artificial Intelligence (AI) tools are rapidly adopted in the workplace and in education, yet the empirical evidence on AI's impact remains mixed. We propose a model of human-AI interaction to better understand and analyze several mechanisms by which AI affects productivity. In our setup, human agents with varying skill levels exert utility-maximizing effort to produce certain task outcomes with AI assistance. We find that incorporati...