Open Access

Does Generative Artificial Intelligence Improve Labor Productivity? Evidence from Knowledge Workers

1 Department of Mechanical and Industrial Engineering, Qatar University, Doha, Qatar

Abstract

Objective: This study investigates whether access to Generative Artificial Intelligence (GenAI) – specifically large language models – improves the labor productivity of knowledge workers, and examines how task complexity, worker skill level, and automation bias moderate or mediate this effect.

Methods: We employed a mixed-methods design including (1) a pre-registered randomized controlled trial (RCT) with 320 knowledge workers from three Chinese technology companies over four weeks, comparing a treatment group with GPT-4 access to a control group without AI; (2) a two-wave longitudinal survey of 1,103 knowledge workers who used GenAI weekly; and (3) qualitative follow-up interviews. Objective productivity was measured via task-tracking systems. Hypotheses were tested using ANCOVA, mixed-effects models with quadratic terms, and structural equation modeling (SEM) with bootstrapped confidence intervals.

Results: GenAI access increased average productivity by 23.7% (p<0.001, η²=0.37). However, task complexity exhibited an inverted-U moderation: medium-complexity tasks gained 34.7% (p<0.001), while high-complexity tasks showed a 14.2% productivity loss (p=0.01). Worker skill heterogeneity was pronounced: mid-performers gained 41.2% (p<0.001), low-performers gained 13.8% (p=0.010), and top-performers showed no gain (-2.5%, p=0.680). Automation bias mediated the relationship, offsetting 18.9% of potential productivity gains, with 31% of users reporting uncritical acceptance of AI outputs.

Conclusions: Generative AI improves knowledge worker productivity on average, but this effect is highly conditional. Universal AI mandates are counterproductive; organizations should target medium-complexity tasks, mid-level performers, and implement verification protocols to counter automation bias. The findings support a contingent task-skill-technology fit framework.

Keywords

How to Cite

Mohammed. (2026). Does Generative Artificial Intelligence Improve Labor Productivity? Evidence from Knowledge Workers. Asia Journal of Social Innovation and Development, 2(1), 81–93. Retrieved from https://www.ajsid.org/index.php/pub/article/view/43

References

📄 [1] A. Humlum, E. Vestergaard, The unequal adoption of ChatGPT exacerbates existing inequalities among workers, Proceedings of the National Academy of Sciences of the United States of America 122(1) (2025).
📄 [2] D. Caamaño-Gordillo, J. Mula, R. de la Torre, Impact of generative artificial intelligence on workload, efficiency and labour productivity, 11th IFAC Conference on Manufacturing Modelling, Management and Control (MIM), Trondheim, NORWAY, 2025, pp. 1408-1413.
📄 [3] A.P. Desai, T. Ravi, M. Luqman, G. Mallya, N. Kota, P. Yadav, Opportunities and Challenges of Generative-AI in Finance, 2024 IEEE International Conference on Big Data, Washington, DC, 2024, pp. 4913-4920.
📄 [4] S. Sai, K. Arunakar, V. Chamola, A. Hussain, P. Bisht, S. Kumar, Generative AI for Finance: Applications, Case Studies and Challenges, Expert Systems 42(3) (2025).
📄 [5] A.R. Doshi, J.J. Bell, E. Mirzayev, B.S. Vanneste, Generative artificial intelligence and evaluating strategic decisions, Strategic Management Journal 46(3) (2025) 583-610.