AI Boosts Workplace Output but Raises Questions About Value and Trust

In a recent paper, economists Luis Garicano, Jin Li, and Yanhui Wu explore how AI tools enable teams to generate high-quality proposals rapidly, erasing the traditional gap that signaled individual talent. While AI accelerates research, drafting, and visual design, it also conceals the informal signals managers use to decide who gets priority or responsibility. The authors introduce the “90/10 production function,” noting AI can deliver work that is ninety percent of the ideal, but pushing to perfection often stalls.

They argue that jobs consist of strong or weak bundles of tasks; strong bundles, like medical diagnosis and sales negotiations, retain value when AI handles routine parts. The paper suggests that employees who can blend technical AI skill with deep workplace knowledge—like BBVA’s enthusiastic staff—will become the most valuable adapters. Ultimately, AI reshapes work by automating commodity tasks while leaving excellence-driven tasks for humans, prompting firms to rethink evaluation and reward systems.