Generative AI and the Reallocation of Time: Productivity, Leisure, and Fulfilling Work

TL;DR

This paper investigates how Generative AI adoption among Korean workers reallocates work time, primarily increasing leisure rather than output, which may lead to underestimation of AI's true productivity impact.

Contribution

It provides empirical evidence on GenAI's effect on work time and reveals that efficiency gains are mainly experienced as leisure, challenging traditional productivity assessments.

Findings

51.8% of workers use GenAI for work

GenAI reduces working time by 3.8%

Efficiency gains are mainly captured as leisure

Abstract

Using a representative survey of Korean workers, we provide evidence on the adoption of Generative AI (GenAI) and how GenAI reallocates time at work. We find that 51.8\% of workers use GenAI for work and GenAI reduces working time by 3.8\%. However, these gains may not materialize in aggregate productivity statistics yet: the correlation between time savings and output changes is near zero. We show this disconnect arises because workers capture efficiency gains primarily as on-the-job leisure, rather than increasing their output. These findings suggest that standard productivity measures may understate AI's impact by missing non-pecuniary welfare channels.