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Harvard Business School Partners with BCG on AI Productivity Study | News

ohog5 by ohog5
October 13, 2023
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Harvard Business School Partners with BCG on AI Productivity Study | News
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A current Harvard Enterprise Faculty examine discovered that synthetic intelligence instruments enhance employee productiveness and accuracy on sure duties however have a countervailing impact on different similarly-difficult duties outdoors a sure “technological frontier.”

In a current working paper known as “Navigating the Jagged Technological Frontier: Subject Experimental Proof of the Results of AI on Information Employee Productiveness and High quality,” HBS and Boston Consulting Group performed a joint examine to research the practicality of AI instruments for reasonable knowledge-intensive purposes in consulting.

The examine was performed by HBS professors Karim R. Lakhani and Edward McFowland III, HBS postdoctoral researcher Fabrizio Dell’Acqua, and researchers from the College of Pennsylvania’s Wharton Faculty, MIT Sloan Faculty of Administration, Warwick Enterprise Faculty, and BCG.

The researchers discovered that AI capabilities at present cowl an uneven set of abilities they time period a “jagged technological frontier”: outdoors of this frontier, AI output is just not correct and even may worsen human efficiency.

Within the examine, 758 BCG consultants got 18 reasonable consulting duties inside this frontier to trace modifications in employee productiveness and accuracy. The examine discovered that, in comparison with employees with out AI entry, those that used GPT-4 accomplished on common 12.2 p.c extra duties, 25.1 p.c faster. Moreover, 40 p.c of the trial group produced increased high quality outcomes.

On the identical time, consultants utilizing AI for duties thought-about outdoors of the frontier had been 19 p.c much less more likely to produce the proper options in comparison with these with out AI.

On account of the examine, researchers distinguished between two totally different patterns of AI integration into these duties: “centaurs” and “cyborgs.”

“A centaur is somebody that clearly defines what the human does and what the AI does, and makes use of a human for no matter people are greatest at, and the AI for no matter its greatest at,” Dell’Acqua mentioned.

However most consultants had been noticed to be a “cyborg” — the place consultants have a “fixed interplay with the AI.”

“These are each sorts of probably profitable collaborations,” Dell’Acqua mentioned.

In a single process requiring individuals to investigate retail technique from interview notes and monetary knowledge in a spreadsheet, an analysis of correctness revealed that there was a “fairly large fall” in efficiency within the group with entry to AI — a discovering that Lakhani attributed to consumer error, not technological shortcomings.

“There’s no consumer information and we do not actually know what the frontier is,” Lakhani mentioned, explaining that the frontier is “jagged,” or undefined, which ends up in consumer error.

“Individuals use it the mistaken means. Individuals use it as an info search instrument like Google,” Lakhani mentioned. “This isn’t Google.”

McFowland highlighted the tradeoff between accuracy and pace when AI is deployed inside organizations with instances “outdoors the frontier.”

“We get productiveness boosts. Issues, they acquired finished sooner, however getting finished sooner to the mistaken reply in lots of instances is just not preferrred — or at the very least not preferable — to getting the precise solutions extra slowly,” he mentioned.

The examine concluded that understanding the “form and place of the frontier” are essential to optimize the impression of AI on employee productiveness.

Although that frontier will transfer ahead as AI progresses, McFowland mentioned we’re nonetheless far off from with the ability to “encapsulate all of human cognition and functionality.”

“There’s at all times going to exist issues outdoors the frontier with capabilities and infrequently the difficult — or perhaps pernicious — half is that we don’t know what these issues are,” he mentioned.

Whereas Lakhani mentioned “it’s going to unlock a ton extra potential for people, for all of us, if you understand how to make use of it,” McFowland remained hesitant about calling AI a “revolution.”

“Expertise has come alongside and adjusted how we do issues earlier than, again and again,” he mentioned. “However in hindsight, we acknowledge that they didn’t — they modified our world — however they weren’t as life-altering as we thought they may have been.”

—Workers author Tiffani A. Mezitis may be reached at tiffani.mezitis@thecrimson.com.

—Workers author Camilla J. Martinez may be reached at camilla.martinez@thecrimson.com. Observe her on X @camillajinm.





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