AI BriefingBank of Korea Analyzes Productivity Gains from AI Adoption
Key point
According to a Bank of Korea report, adopting AI reduces work hours but may not lead to substantial productivity gains.
Details
According to a Bank of Korea report, using AI for work can reduce weekly work hours by about 3.8% (roughly 1 hour).
However, this time savings does not directly translate into real profitability or productivity gains for companies. The main causes are as follows.
- The workload paradox: As report writing speeds up, the total volume of reports and reviews actually increases, offsetting the time saved.
- Lack of a reward system: Even when saved time is redirected to new tasks, no additional compensation follows.
- Limited productivity gains: Even if all side effects were resolved, the expected real productivity increase is projected to be at most around 1%.
As a result, while AI adoption can improve the efficiency of individual tasks, it faces challenges including an increase in the company's overall workload and a low conversion rate into productivity.
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