AI in Business and Society

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Paper Number

1670

Paper Type

short

Description

Despite the growing adoption of AI in business operations, the potential differential effects of AI adoption on individual workers remain ambiguous. Drawing on the unique microdata of an on-demand food delivery platform, we investigate the impact of AI adoption on the labor productivity of delivery workers at different skill levels. Our results show that AI adoption enhances the workers’ labor productivity by 3% on average. The enhancement effect was concentrated on low- and middle-skilled drivers (6.5% and 5%, respectively) without a significant effect on the high-skilled. Furthermore, the labor productivity gap involved improvements in overall system efficiency and customer service quality. Our study provides a piece of empirical evidence that introducing AI to markets with a significant labor productivity gap may bridge this gap and yield a Pareto improvement for all stakeholders.

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Dec 12th, 12:00 AM

AI Divide versus Inclusion: An Empirical Evidence from an On-demand Food Delivery Platform

Despite the growing adoption of AI in business operations, the potential differential effects of AI adoption on individual workers remain ambiguous. Drawing on the unique microdata of an on-demand food delivery platform, we investigate the impact of AI adoption on the labor productivity of delivery workers at different skill levels. Our results show that AI adoption enhances the workers’ labor productivity by 3% on average. The enhancement effect was concentrated on low- and middle-skilled drivers (6.5% and 5%, respectively) without a significant effect on the high-skilled. Furthermore, the labor productivity gap involved improvements in overall system efficiency and customer service quality. Our study provides a piece of empirical evidence that introducing AI to markets with a significant labor productivity gap may bridge this gap and yield a Pareto improvement for all stakeholders.

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