New research reveals the transformative power of artificial intelligence (AI) on labor productivity across Vietnam. The study, conducted by the Federal Reserve Bank of St. Louis along with Vanderbilt University and Harvard University, has found compelling evidence indicating workers are significantly enhancing their productivity through the use of generative AI technologies.
According to the findings, workers reported substantial time savings and productivity gains directly associated with the implementation of AI tools. On average, employees managed to save 33% of their work time per hour when leveraging generative AI. Notably, 34% of survey respondents indicated they saved four hours or more over the week due to AI, highlighting the transformative capacity of this technology.
The survey data, collected nationwide, showed varying levels of time savings based on usage frequency. Those who engaged frequently with generative AI noted greater productivity. For example, among daily users during the past week, 34% claimed they saved four hours or more, compared to just 12% of employees using AI only once. This trend points to the advanced learning curve related to the technology, where frequent exposure yields higher time savings and productivity benefits.
Further analysis of the survey indicated weekly users of AI, working 40 hours, could average 2.2 hours saved each week. This impressive figure leads to the conclusion of AI contributing, on aggregate, to 1.4% of total work hours saved across the industry, marking a significant innovation moment.
The findings are particularly impactful against the backdrop of aging populations and rising concerns over fiscal deficits within the U.S. government. Enhancing productivity through technology like AI is viewed as instrumental for boosting real wage growth, profit margins, and tax revenues. Yet, the researchers caution about the need for more detailed studies to fully understand the economic ramifications.
Interestingly, the benefits of AI utilization were shown to be unevenly distributed across different industries. Workers in the information service sector dedicated more of their hours to generative AI, at 14% of their time, recording the highest associated time-saving rates, at 2.6%. Conversely, industries such as entertainment, hospitality, and others utilized generative AI the least, averaging only 2.3% of total working hours with minimal time savings at 0.6%.
Although AI technology is gaining traction and is becoming more commonplace within these sectors, many still regard this development as new and are grappling with its long-term effects on overall productivity. Specialists suggest, "If workers can finish their tasks more quickly without being noticed by employers, they may choose to utilize the saved time for short breaks from work, which improves well-being but doesn’t affect overall efficiency."2
These insights illuminate not only the current capabilities of AI to change workplace dynamics but also stress the expectations surrounding future growth and economic health as technology integrates more deeply within the workforce. While the immediate benefits of AI tools are progressive, the long-term influence on corporate performance and employee welfare remains to be seen.
Therefore, as AI continues to embed itself across various industries, stakeholders and policymakers must closely monitor the situation. The challenge lies not only in embracing AI technology but also ensuring it translates effectively to sustained productivity increases without unintended adverse effects on job satisfaction or work-life balance.