Microsoft/GitHub: Generative AI and The Nature of Work

Summary of https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5007084

This working paper investigates the impact of generative AI on the nature of work, specifically focusing on software development. The authors study the introduction of GitHub Copilot, an AI-powered code completion tool, within the open-source software development ecosystem.

They use a natural experiment based on GitHub's "top developer" program, which provides free Copilot access to developers of the most popular repositories. Through a regression discontinuity design, they find that access to Copilot induces developers to allocate more time towards coding activities and less towards project management.

This shift is driven by two mechanisms: an increase in autonomous work and an increase in exploration activities. The authors also find that the effects are greater for developers with lower ability, suggesting that generative AI has the potential to flatten organizational hierarchies and reduce inequality in the knowledge economy.