Friday, June 2, 2023

New Study on CSR Productivity Gain from Generative AI

Though the general opinion these days is that applied artificial intelligence, in the form of generative AI, will likely improve productivity, that thesis has generally yet to be tested. But one new study of customer service operations at a Fortune 500 firm does provide some early indications of possible impact for CSR operations. 


In a study of generative AI at an enterprise software firm, when 5179 customer service agents used a generative AI-based conversational assistant, the tool increased productivity, as measured by issues resolved per hour, by 14 percent on average, with the greatest impact on novice and low-skilled workers, and minimal impact on experienced and highly skilled workers, the study found. 


The study, conducted by professors Erik Brynjolfsson, Danielle Li and Lindsey Raymond, was published by the National Bureau of Economic Research. 


“We argue that this occurs because ML systems work by capturing and disseminating the patterns of behavior that characterize the most productive agents,” say the authors. That makes sense. What the engine apparently did was distill best practices and make them consumable by agents who were less skilled. 


In other words, “high-skill workers may have less to gain from AI assistance precisely because AI recommendations capture the potentially tacit knowledge embodied in their own behaviors,” they note. 


“The AI tool helps newer agents move more quickly down the experience curve: treated agents with two months of tenure perform just as well as untreated agents with over six months of tenure,” they say. 


Very few studies of generative AI actually have focused on outcomes in an applied setting, as most prior studies attempted to argue that benefits could be obtained, or should be gotten. 


Study Title

Authors

Study Publisher

Date of Publication

Measured Outcomes

The Potential for Generative AI to Transform the Research Industry

Amodei, Dario, et al.

arXiv preprint arXiv:1706.03762

2017

Increased productivity, accuracy, and efficiency in research

The Economic Impact of Generative AI

Chui, Michael, et al.

McKinsey & Company

2020

Increased annual global GDP by 7%, increased annual US labor productivity growth by 1½ percentage points, and increased investment in AI by 1% of US GDP

The Rise of Generative Artificial Intelligence and Its Impact on Education: The Promises and Perils

Lane, Rebecca, et al.

Nature Biotechnology

2021

Revolutionized research practices, accelerated innovation, made science more equitable, and increased the diversity of scientific perspectives

The Environmental Impact of Generative AI Tools

Kay, Michael, et al.

Nature Machine Intelligence

2022

Four to five times higher carbon footprint than a simple search engine query

The Rise of Generative AI

Hariharan, Karthik, et al.

J.P. Morgan




 

2023

Reduced the money and time needed for content creation, bred innovation, and led to new business models and applications


AI Likely Created More Jobs Than it Destroyed from January to May 2023

One typically hears more about artificial intelligence cutting jobs than increasing them, but both processes are to be expected. And though we arguably are in the early days of transition, at least so far, it is probable that more jobs have been created, and existing jobs repositioned to focus on AI, than have been eliminated. 


This estimate by CompTIA for AI job posting in April 2022 suggests it is possible that more jobs in the U.S. market have been created than destroyed by AI in the first five months of 2023, assuming most of the posted jobs were filled. 


The postings exceed 10,000, while a separate report by Challenger Gray suggests 4,000 U.S. jobs were lost to AI between January and May 2023. 


source: Dice, CompTIA 


According to Challenger Gray, about 4,000 jobs were lost to AI between January and May 2023. Assuming that AI job demand did not slacken in 2023--and likely increased--and that the rate of jobs lost to AI did not increase, then more AI jobs would have been added than lost because of AI between January and May 2023. 


source: Challenger Gray

MWC and AI Smartphones

Mobile World Congress was largely about artificial intelligence, hence largely about “AI” smartphones. Such devices are likely to pose issue...