How AI Augmentation Can Transform Performance: The Latest Research from the Harvard Business School
Introduction
Artificial Intelligence (AI), particularly Large Language Models (LLMs) like GPT-4 is a revolutionary force that's here to reshape how we work, think, and solve problems. So, how does AI impact the performance of highly skilled professionals? A recent study conducted by Boston Consulting Group (BCG) in collaboration with academic researchers from the Hardvard Business School answers this question in depth. In this blog post, we'll delve into the key findings of this study and the implications for your organisation.
The Study: A Brief Overview
The study was meticulously designed to assess the performance implications of AI on 758 consultants, who made up about 7% of the individual contributor-level consultants at BCG. Participants were exposed to 18 realistic consulting tasks and were divided into three groups: those with no AI access, those with GPT-4 AI access, and those with GPT-4 AI access along with a prompt engineering overview.
The Jagged Technological Frontier
The concept of a "jagged technological frontier" is pivotal to this study. It means that while AI excels in some tasks, it falters in others that may appear equally complex. For tasks within the AI's frontier, consultants were found to be 12.2% more productive and 25.1% quicker, with a 40% increase in quality.
Mindset Shift: AI as a Productivity Multiplier
Traditionally, we think of AI as a tool for automation. However, this study urges us to view AI as a productivity multiplier that enhances the capabilities of skilled professionals.
Performance Improvements Across the Board
The study found performance improvements for consultants across various skill levels. Those below the average performance threshold saw a remarkable 43% improvement, while those above average improved by 17%.
Pain Point: People Problems and Skill Gaps
Finding the right people with the right skills is a constant challenge. But what if you could augment your existing team's capabilities with AI? The research shows that AI can significantly improve those whose performance is below average.
The Two Archetypes: Centaurs and Cyborgs
The study identified two distinct patterns of successful AI usage. One group acted as 'Centaurs,' delegating tasks either to the AI or themselves. The other group behaved more like 'Cyborgs,' integrating AI into their workflow in a symbiotic manner.
Observation: New Ways or Working
The Centaur and Cyborg models show that people are still exploring different ways of leveraging AI, with no one model clearly better than the other. People need understand the different approaches and their benefits and challenges.
When AI Falls Short
For tasks beyond the AI's frontier, consultants using AI were 19 percentage points less likely to produce correct solutions. This is a crucial point to consider when incorporating AI into your workflows.
Mindset Shift: Understand the Limits
AI is not a silver bullet. Recognising its limitations is crucial for harnessing its full potential and failure to do so could lead errors. The danger is multiplied given that incorrect solutions created by AI are often more convincing than they would otherwise be.
Conclusion
The Harvard Business School study unequivocally underscores the transformative potential of generative AI tools like ChatGPT in elevating organisational performance. It's not just about marginal gains; we're talking about substantial leaps in productivity, speed, and output quality—benefits that any organisation would be very happy to see.
However, this is not a 'plug-and-play' scenario.
The research explicitly emphasises the indispensable role of training in any AI strategy.
Two crucial points stand out: Firstly, those consultants who had both access to AI and additional training on its utilisation outperformed their counterparts who only had access to the AI tool. Secondly, it's imperative for users to discern which tasks lie within the AI's 'jagged technological frontier' to avoid compromising on task quality. This is especially true given AI's ability to misinform us better than humans.
Next Steps
Want to learn more about AI and performance? Check out these links:
AI model GPT-3 (dis)informs us better than humans
AI in the Workplace: How to Leverage This Cutting-Edge Technology for Better Business Results
To find out how PerformanceNinja could help you design and implement an AI strategy that increases performance, book a free strategy call or take a look at our AI Coaching Groups.
