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Generative Artificial Intelligence (genAI) is the latest evidence of the transformative value of AI in organizations. One promising avenue lies in software engineering, where genAI can contribute to coding by pairing with developers. Based on a sample of global firms, two main insights emerge on analyzing the productivity implications of genAI-pair coding. Coding quality is negatively correlated with productivity throughput gains, while quality-adjusted productivity gains depend on the extent to which organizations have deployed AI capabilities in the form of data, skills upgrade, and AI governance. As observed with other digital technologies, the success of using genAI is closely tied to complementary technical skills and organizational resources.
Jacques Bughin (Wed,) studied this question.