Economists Argue AI Reshapes Work Through '90/10 Production Function'

An essay in The New Yorker explores the evolving dynamics of the workplace due to AI, referencing the research paper "Messy Jobs: The Work That AI Cannot Reach" by economists Luis Garicano, Jin Li, and Yanhui Wu. They introduce the concept of a "90/10 production function," suggesting that while AI can achieve 90% quality, it struggles to reach excellence. A study indicates that artists utilizing AI tools can produce work in 30 minutes that would typically require two hours manually, with further adjustments yielding diminishing returns. The piece differentiates between "commodity tasks" and "star tasks," analyzing AI's effects on junior employees. It notes BBVA's successful AI adoption and mentions a decline in software engineer job openings in 2025, followed by an increase in 2026. Researchers from Stanford cautioned against making broad conclusions from initial AI work-related evidence.