A theoretical model finds that endogenous skill development or AI unreliability can cause productivity to fall with more AI assistance and produce steady-state skill polarization based on AI literacy.
Proof of Proposition D.6.Recall that the utility-maximizing effort is given by e⋆(s,¯a, q) := arg max e≥0 (q·p(s+e+ ¯a) + (1−q)·p(s+e)−c(e))
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Human-AI Productivity Paradoxes: Modeling the Interplay of Skill, Effort, and AI Assistance
A theoretical model finds that endogenous skill development or AI unreliability can cause productivity to fall with more AI assistance and produce steady-state skill polarization based on AI literacy.