Tech
Does AI really boost productivity at work? Research shows gains don’t come cheap or easy
Artificial intelligence (AI) is being touted as a way to boost lagging productivity growth.
The AI productivity push has some powerful multinational backers: the tech companies who make AI products and the consulting companies who sell AI-related services. It also has interest from governments.
Next week, the federal government will hold a roundtable on economic reform, where AI will be a key part of the agenda.
However, the evidence AI actually enhances productivity is far from clear.
To learn more about how AI is working and being procured in real organizations, we are interviewing senior bureaucrats in the Victorian Public Service. Our research is ongoing, but results from the first 12 participants are showing some shared key concerns.
Our interviewees are bureaucrats who buy, use and administer AI services. They told us increasing productivity through AI requires difficult, complex, and expensive organizational groundwork. The results are hard to measure, and AI use may create new risks and problems for workers.
Introducing AI can be slow and expensive
Public service workers told us introducing AI tools to existing workflows can be slow and expensive. Finding time and resources to research products and retrain staff presents a real challenge.
Not all organizations approach AI the same way. We found well-funded entities can afford to test different AI uses for “proofs of concept.” Smaller ones with fewer resources struggle with the costs of implementing and maintaining AI tools.
In the words of one participant: “It’s like driving a Ferrari on a smaller budget […] Sometimes those solutions aren’t fit for purpose for those smaller operations, but they’re bloody expensive to run, they’re hard to support.”
‘Data is the hard work’
Making an AI system useful may also involve a lot of groundwork.
Off-the-shelf AI tools such as Copilot and ChatGPT can make some relatively straightforward tasks easier and faster. Extracting information from large sets of documents or images is one example, and transcribing and summarizing meetings is another. (Though our findings suggest staff may feel uncomfortable with AI transcription, particularly in internal and confidential situations.)
But more complex use cases, such as call center chatbots or internal information retrieval tools, involve running an AI model over internal data describing business details and policies. Good results will depend on high-quality, well-structured data, and organizations may be liable for mistakes.
However, few organizations have invested enough in the quality of their data to make commercial AI products work as promised.
Without this foundational work, AI tools won’t perform as advertised. As one person told us, “data is the hard work.”
Privacy and cybersecurity risks are real
Using AI creates complex data flows between an organization and servers controlled by giant multinational tech companies. Large AI providers promise these data flows comply with laws about, for instance, keeping organizational and personal data in Australia and not using it to train their systems.
However, we found users were cautious about the reliability of these promises. There was also considerable concern about how products could introduce new AI functions without organizations knowing. Using those AI capabilities may create new data flows without the necessary risk assessments or compliance checking.
If organizations handle sensitive information or data that could create safety risks if leaked, vendors and products must be monitored to ensure they comply with existing rules. There are also risks if workers use publicly available AI tools such as ChatGPT, which don’t guarantee confidentiality for users.
How AI is really used
We found AI has increased productivity on “low-skill” tasks such as taking meeting notes and customer service, or work done by junior workers. Here AI can help smooth the outputs of workers who may have poor language skills or are learning new tasks.
But maintaining quality and accountability typically requires human oversight of AI outputs. The workers with less skill and experience, who would benefit most from AI tools, are also the least able to oversee and double-check AI output.
In areas where the stakes and risks are higher, the amount of human oversight necessary may undermine whatever productivity gains are made.
What’s more, we found when jobs become primarily about overseeing an AI system, workers may feel alienated and less satisfied with their experience of work.
We found AI is often used for questionable purposes, too. Workers may use AI to take shortcuts, without understanding the nuances of compliance within organizational guidelines.
Not only are there data security and privacy concerns, but using AI to review and extract information can introduce other ethical risks, such as magnifying existing human bias.
In our research, we saw how those risks prompted organizations to use more AI—for enhanced workplace surveillance and forms of workplace control. A recent Victorian government inquiry recognized that these methods may be harmful to workers.
Productivity is tricky to measure
There’s no easy way for an organization to measure changes in productivity due to AI. We found organizations often rely on feedback from a few skilled workers who are good at using AI, or on claims from vendors.
One interviewee told us:
“I’m going to use the word ‘research’ very loosely here, but Microsoft did its own research about the productivity gains organizations can achieve by using Copilot, and I was a little surprised by how high those numbers came back.”
Organizations may want AI to facilitate staff cuts or increase throughput.
But these measures don’t consider changes in the quality of products or services delivered to customers. They also don’t capture how the workplace experience changes for remaining workers, or the considerable costs that primarily go to multinational consultancies and tech firms.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Does AI really boost productivity at work? Research shows gains don’t come cheap or easy (2025, August 15)
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Tech
Why Is Alexa+ So Bad?
I stuck Amazon’s Echo Show 15 and its Alexa+ AI assistant in my kitchen for a month. Things have not gone well.
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Tech
The War on Iran Puts Global Chip Supplies and AI Expansion at Risk
South Korean officials have warned that the US-Israel war with Iran could hit the global semiconductor supply chain if it disrupts the flow of critical industrial materials from the Middle East.
South Korea’s semiconductor sector, led by giants like Samsung Electronics and SK Hynix, produces about two-thirds of the world’s memory chips. If the Middle East’s supply of chipmaking materials is disrupted, semiconductor production could slow unless alternative sources are found quickly.
The Helium Problem
One material at risk is helium, which is essential in chip manufacturing for managing heat, detecting leaks, and maintaining stable temperatures in fabrication equipment. For many of these uses, there is no real substitute.
About 38 percent of the world’s helium is produced by Qatar, where large extraction facilities are tied to the natural gas industry. This concentration means that disruptions can quickly ripple through the global supply chain.
National oil company QatarEnergy declared force majeure on March 4, after stopping its gas production and downstream operations due to ongoing attacks. Downstream facilities turn gas into other products, including urea, polymers, methanol, and aluminum.
South Korea’s Industry Ministry said the country also depends on the Middle East for 14 other materials in chipmaking, such as bromine and some chip-inspection equipment. While some of these materials can be sourced domestically or from other markets, shifting suppliers in the semiconductor sector is difficult because chipmakers need to test and validate new sources to meet strict purity standards.
Companies say the situation is manageable for now. As reported by Reuters, SK Hynix said it has secured diverse supply chains and maintains sufficient helium inventories, adding that there is “almost no chance” its operations would be affected in the near term.
Contract chipmaker TSMC similarly said it does not currently anticipate a significant impact, while GlobalFoundries stated it is in direct contact with suppliers and has mitigation plans in place.
Stuck in Transit
Even if Qatar’s gas production restarts, the semiconductor industry is vulnerable to disruptions in regional shipping routes. Much of the world’s energy and petrochemical exports from the Persian Gulf pass through the Strait of Hormuz, a key maritime choke point.
If shipping through this corridor is interrupted for an extended period, it could slow the movement of industrial gases and petrochemicals that chipmakers rely on. Disruptions to oil and gas exports from the region have also already pushed global energy prices higher: Brent crude, the European benchmark, is priced at $80 per barrel at the time of publication.
Energy costs are a major factor in semiconductor production. Fabrication plants run large clean rooms that need constant electricity and cooling, so chipmakers are sensitive to changes in global energy prices. Industry representatives in South Korea warned that a prolonged conflict could push energy prices higher, likely leading to higher semiconductor production costs and potentially higher chip prices.
These risks come as semiconductor supply chains are already stretched by growing demand from AI computing. Chip demand from AI data center operators has tightened supply across several electronics sectors, including smartphones, laptops, and automobiles.
A Long-Term Problem
For now, the immediate impact on chip production is unclear. Major chipmakers usually maintain a mix of suppliers and stockpile specialty gases and chemicals to help weather short-term disruptions.
But if instability in the region continues, pressure on supply chains will likely grow. A drawn-out conflict that hits energy infrastructure, export facilities, or shipping routes could slowly squeeze the global supply of materials needed for chipmaking.
This could delay plans by major technology companies to expand artificial intelligence infrastructure in the Middle East. Firms such as Amazon, Microsoft, and Nvidia have been positioning the UAE as a hub for AI computing capacity.
This story originally appeared on WIRED Middle East.
Tech
Save up to $600 With These Mattress Firm Coupons and Deals
Chances are that when you google “mattress store near me,” one of the first results you will see is Mattress Firm. This brick and mortar titan carries both established mattress brands like Serta and Sealy, as well as many online brands, like Purple, letting you go see for yourself if it’ll be the mattress for you. And if you were looking for an excuse to hop in the car and head over, we have a Mattress Firm coupon available right now, as well as tons of Mattress Firm promo codes to save big on those big (and small) purchases. Fingers crossed that you could start sleeping better, potentially as soon as tonight.
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Get 15% Off When You Sign Up for Emails
To make sure you never miss out on Mattress Firm discount codes, you can sign up for email notifications. By doing so, you automatically get one! You can get an extra 15% off on your first order. Heads up that it can’t be combined with other coupons, nor can it be applied to specific brands and models, including Nectar, Purple, Sealy Hybrid, Tempur-Pedic, Stearns & Foster, and Serta iComfort.
Free Adjustable Base (Up to $499 Value) With Select Mattresses
First and foremost, make sure you have or are getting a mattress that’s compatible with an adjustable base. If you’re all set bed-wise, but have been looking for the right time to buy an adjustable base, consider this your sign: select mattresses come with a free adjustable base (up to $499 value). At last, you can sit up in bed or kick up your feet to your heart’s content.
Score Up to $300 in Instant Credits and Gifts
Mattress Firm’s got a gift for you, just ‘cuz. For those eyeballing Tempur-Pedic, Sealy, and Sterns & Foster in particular, it’s your lucky day, as there are Mattress Firm coupon codes for all three of these brands.
Starting with Tempur-Pedic, when you buy a qualifying Tempur-Pedic mattress, you can receive a $300 Instant Credit on these adjustable bases: Tempur-Ergo, Tempur-Ergo Smart Base, Tempur-Ergo ProSmart Base, Tempur-Ergo ProSmart Air Base, or the Sealy Ease Base. Use code TEMPURGIFT. You can also get a $300 credit toward these same adjustable bases when you purchase a qualifying Stearns & Foster mattress: use code STEARNSGIFT at checkout.
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Take 20% Off With Military, Medical, Student, or Teacher Discounts
Sleep is a necessity for everyone. But for those who work all day on their feet, and have to be dialed in at all times, sleep is critical. This is especially true for first responders, nurses, doctors, and medical professionals. As a way to say “thank you” for all that you do, there’s a special mattress firm discount just for you. Use the Mattress Firm first responder discount for 20% off select purchases. It’s for one-time use, but renews every 90 days when you re-verify your status.
For military members, as a way to thank you for your service, you can use the Mattress Firm military discount for 20% off select purchases as well. It’s a one-time use code, but re-verify your status every 90 days, and you can get a new one!
If you’re a teacher or student, there’s also a Mattress Firm discount for you, too. To help you bounce back after long days teaching, or late nights studying, use this Mattress Firm student discount code for 20% off select purchases. Like the first responder and military coupons, it’s a one-time usage code that can be renewed every 90 days when you re-verify your status.
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