arXiv · 2605.11350
Human-AI Productivity Paradoxes: Modeling the Interplay of Skill, Effort, and AI Assistance
Abstract
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 incorporating either endogeneity in skill development or in AI unreliability can induce a productivity paradox: increased levels of AI assistance may degrade productivity, leading to potentially significant shortfalls. Moreover, we examine the long-term distributional effect of AI on skill, and demonstrate that skill polarization can emerge in steady state when accounting for heterogeneity in AI literacy -- the agent's capability to identify and adapt to inaccurate AI outputs. Our results elucidate several mechanisms that may explain the emergence of human-AI productivity paradoxes and skill polarization, and identify simple measures that characterize when they arise.
Explore related subjects
Keep this discovery
Explore connections, maps & timelines
Ali Aouad, Thodoris Lykouris, Huiying Zhong. 2026-05-12. Human-AI Productivity Paradoxes: Modeling the Interplay of Skill, Effort, and AI Assistance. https://arxiv.org/abs/2605.11350
Cite the original work for its findings. Save a collection to share your selection of sources.