The Bank of Korea has published an issue note examining whether generative AI adoption has improved productivity over its first three years of use. Using nationally representative household survey data, the note finds that AI adoption reduced average work time by 3.8%, equivalent to about 1.5 hours a week, which implies a potential productivity gain of about 1.0% if all saved time were redirected to productive activity. However, the study finds that these time savings have not translated into actual output growth, indicating that AI has improved efficiency at the task level without yet moving into a broader productivity stage. The analysis is based on a 2025 survey of 5,512 employed people aged 15 to 64. Time savings were most pronounced among lower-skilled workers and intensive AI users, and were strongest in cognitive, non-routine tasks such as writing, analysis and software development. At the worker level, the relationship between time savings and output gains was essentially zero. The note identifies exceptions among the self-employed, professionals, younger workers and intensive AI users, where greater job autonomy, stronger performance-linked incentives and higher AI use intensity appear to help convert saved time into higher output. It attributes the broader disconnect to limited workflow redesign, rigid organizational structures, production bottlenecks and weak incentives to reinvest time savings in higher-value work. The note argues that sustained productivity gains will depend on firms redesigning workflows and organizational structures, reallocating tasks between workers and AI, and strengthening performance-based incentive systems. It also highlights the need to monitor how AI affects skill formation and career pathways, particularly for younger workers, as automation of standardized tasks may weaken traditional on-the-job learning routes.
Bank of Korea2026-06-09
Bank of Korea publishes study finding AI cut work time by 3.8 percent but did not raise realized productivity
The Bank of Korea published a study finding that generative AI reduced average work time by 3.8%, or about 1.5 hours a week, implying a potential productivity gain of about 1.0%. Those time savings, however, showed essentially no relationship with actual output growth, suggesting AI efficiency gains have not yet been converted into realized productivity. The note links the gap to limited workflow redesign and incentives, with stronger output effects only among groups such as the self-employed, professionals and intensive AI users.