In early language model studies, generative AI seemed to produce larger gains for less-skilled or less-experienced workers.
Later studies now show different outcomes. Apparently, studies now also suggest that workers with greater competence using AI seem able to capture disproportionately large benefits.
That seems quite contradictory. One potential answer might be that two different processes are at work.
The first-generation effect of LLMs may be basic skill compression. The least-competent workers become more productive as AI lifts basic performance.
A second-generation effect might involve a new level of skill polarization around AI competence. As often happens, the most-productive workers then become even more productive, even as basic skill competence of the least-skilled also rises.
The process might be akin to the “strength begets strength” phenomenon we often see with firms in general, which is that the best-managed firms also tend to be the organizations able to reap the most benefit from any new technology.
The research arguably makes more sense if "skill" is divided into three different things:
Underlying job skill: how good you were at the task before AI
Domain knowledge: how well you understand the subject being worked on
AI-use skill: how well you can prompt, interrogate, evaluate, correct and integrate the model's output.
The first category has generally not favored high-skilled workers in the experiments, but the third category increasingly appears to do so.
So it seems AI can reduce the productivity gap between workers while simultaneously creating a new gap between good and bad AI users.
The 2026 Idan-Anand experiment is especially interesting because it explicitly finds that prior knowledge and GPA were not good predictors of who gained most from the LLM.
What mattered was AI interaction competence; the ability to elicit, filter and verify the model's output.
That might be quite a different matter than the ability of a new employee to master basic skills.
Consider customer support roles:
Top worker without AI: 100 units
Bottom worker without AI: 50 units
AI increases bottom worker to 70
AI increases top worker to 105
In such instances, we can argue that productivity inequality is lessened. The least-skilled workers perform better. But the performance of the best workers also increases.
But such instances also are of job categories where the “best” level of performance might be effectively limited.
Other job roles involving higher cognitive input and output do not have the same degree of limits on “best” performance. In other words, there is no obvious ceiling on output quality.
In those instances, AI is not going to help a person with cognitive, creative or other limits to approach the possible performance of workers with more innate capabilities.
The upside from AI might depend less on whether a job is "high skill" than on whether the job has a high ceiling on the quality of its output.
The key distinction is between tasks with an externally imposed performance ceiling and tasks where better reasoning, creativity, judgment, or synthesis can keep improving the result.
Consider a customer-service representative processing a standard billing inquiry.
There may be a fairly objective definition of a good answer:
correct information;
appropriate procedure;
polite interaction;
resolution of the customer's problem.
Once the AI gets the worker from, say, 80 percent to 95 percent effectiveness, there isn't necessarily much additional value in getting to 98 percent.
The value of being 10 times better than average is limited because the task itself doesn't have much room for exceptional performance.
Non-routine knowledge work arguably is quite different. Consider a:
scientist developing a new drug;
engineer designing a new semiconductor;
entrepreneur developing a new business;
investment analyst finding an overlooked opportunity;
architect designing a building;
software engineer designing a new system;
lawyer developing an unusual legal strategy;
management consultant developing a corporate strategy;
researcher developing a new theory.
There isn't necessarily a point at which the answer becomes simply "correct” or “good.”
Exceptional or revolutionary value creation can happen, with enormous implications for value.
These are jobs where:
the problem isn't completely specified
there are many possible approaches
success requires combining information from multiple domains
there isn't an obvious algorithm for solving the problem
better answers can have enormous economic value.
In those scenarios, where upside is unlimited or bounded, AI might make a huge difference.
For jobs where a human can produce 0 to 100 units of value, and AI raises the average worker from 50 to 75, that’s helpful.
But in other instances, where a human can produce 0 to 100 units of value today, but potentially 1,000 or 10,000 if they discover something exceptional, the order of magnitude upside is where AI can produce exponentially-better outcomes.
Creative work has a peculiar economic property: “quality” is unrestricted or uneven.
A brilliant advertisement can transform a brand
An exceptional bit of software can create an entirely new category
An exceptional financial bet can produce enormous returns
A breakthrough scientific paper can create an entirely new field.
“Adequate” is one thing. “Transformative” is something else.
The conventional automation story is that machines take the routine jobs while humans retain the non-routine jobs.
But the generative-AI story might also be that AI takes the routine portions of non-routine jobs, leaving humans with increasingly open-ended problems:
A consultant focuses on business options
A programmer asks “What should we build?”
A scientist asks “What should we investigate next?”
A CEO continues to make decisions about what the company makes
An entrepreneur decides which possibilities are worth pursuing.
So whether AI helps lower-skilled or highly-skilled workers more, the greatest long-term economic upside of AI might occur where AI can dramatically expand the number and quality of solutions that a capable human can explore, while the value of an exceptional solution has no obvious upper bound.
So open-ended, non-routine work may ultimately be a much more important AI opportunity than routine automation.
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