Generative AI and the Reallocation of Time: Productivity, Leisure, and Fulfilling Work

TL;DR

This paper investigates how GenAI reshapes worker time use and welfare using a representative Korean survey. By measuring both time savings and task-level output, the authors uncover a near-zero correlation ($r\approx 0.008$) between time reductions and productivity gains, suggesting that efficiency is currently captured as on-the-job leisure or through shifts in task mix rather than increased output. They document substantial heterogeneity across occupations and tasks, with time savings concentrated on information-processing activities and accompanied by a shift toward more fulfilling work for some workers. The findings imply that early GenAI adopters experience welfare improvements through non-pecuniary channels, and realizing broader productivity requires organizational changes that align time savings with output expansion.

Abstract

Using a representative survey of Korean workers, we provide evidence on the adoption of Generative AI (GenAI) and how GenAI reallocates time at work. We find that 51.8\% of workers use GenAI for work and GenAI reduces working time by 3.8\%. However, these gains may not materialize in aggregate productivity statistics yet: the correlation between time savings and output changes is near zero. We show this disconnect arises because workers capture efficiency gains primarily as on-the-job leisure, rather than increasing their output. These findings suggest that standard productivity measures may understate AI's impact by missing non-pecuniary welfare channels.

Figures (13)

• Figure 1: Generative AI adoption rates among Korean workers
• Figure 2: GenAI usage by gender and age
• Figure 3: GenAI usage by education and income
• Figure 4: GenAI adoption patterns across occupations
• Figure 5: Distribution of daily GenAI usage among adopters