AI helps organizations be more efficient, but not necessarily more productive: TNO
Artificial Intelligence helps organizations work smarter and more efficiently, but that does not automatically translate into an increase in productivity, the Netherlands Organisation for Applied Scientific Research (TNO) found in a new study. The researchers also noted that employers don’t give sufficient consideration to how AI changes employees’ tasks and working conditions.
TNO investigated how four organizations deployed AI: a.s.r., which uses AI to predict customer satisfaction, the Customs Service, which uses AI to search for information in Customs manuals, the e-commerce company HelloPrint, which uses AI to automatically answer customer questions, and IT service provider LINKIT, which uses AI to generate offer letters and project descriptions. The researchers spoke with various employees and managers at these companies, combined with a literature review.
“The results show that AI accelerates and simplifies work processes at the organizations, but that productivity gains are not a standard consequence,” the researchers found.
How helpful AI is depends on the situation in the organization. At HelloPrint, AI cut costs significantly because 80 percent less staff was required to answer customer questions. At Customs and LINKIT, on the other hand, AI only resulted in small time savings on specific tasks.
And that time savings did not automatically lead to increased productivity or revenue. That, too, depends on the organization. “Productivity gains only occur if they realize the freed-up time effectively,” the researchers said.
The researchers also stressed that employers need to give more consideration to how AI affects their employees' working conditions. “AI influences not only the quantity of work, but also the quality of work.” It can make some tasks more complex and others more monotonous, affecting employees' mental strain and autonomy.
“The participating organizations considered this to a limited extent beforehand, and only in broad strokes.” According to the researchers, companies often focus only on improving productivity through task automation, and do not consider the consequences for their employees’ day-to-day.
The researchers advised companies to closely involve the employees who will work with the AI in its development and implementation. “This increases the chances of productivity improvement through a well-functioning AI system. Furthermore, it increases the likelihood that timely and sufficient attention will be paid ot changes in tasks and conditions.”
AI adoption is more than a purely technical challenge, the researchers said. “Organizations must make conscious choices regarding the design of work, roles, and processes. Only in this way can they achieve the win-win of higher productivity and good quality of work for employees.”
