AI is integrated into our daily lives, but does AI actually help us become more efficient? From a survey taken by the Federal Reserve Bank of St.Louis, studies found that of people who used AI in the previous week, 20.5% reported 4+ hours of work saved and 20.1% reported 3 hours of work saved every month. 

Although this may not seem like much, saving hours every month can cause these workers to allocate their time to other tasks. Over time, these small improvements can accumulate to more advancements in a company. 

This showcases that workers are finishing their work in a shorter amount of time, but does this increase labor productivity? In economics, productivity is defined as the total number of output divided by total number of hours. With AI, if workers are able to produce the same amount of work in a shorter amount of time, this causes productivity to increase.

When looking at this on a graph, this showcases an upward shift in the production function, because using the same amount of capital and time but more output causes an increase in productivity. This showcases the idea that learning AI is a form of human capital. By acquiring the skill of AI, they have more knowledge and are able to produce more output in a given timeframe. 

But why is an increase in productivity important? Let's take analyzing DNA sequences. Before AI, in order to analyze a DNA sequence, they had to use a method called Sanger Sequencing. The human genome project, which used sanger sequencing to analyze a whole person’s DNA, projected to cost $3 billion based on its estimated length of 15 years.

However, now with the addition of AI, researchers were able to make the new Next Generation Sequencing even more efficient. With this new method, in a study conducted by NIH on 1,119 patients, DNA sequencing took an estimated 2 weeks and an average cost of $4,932. This demonstrates how with advancements in AI, researchers are able to increase technology by decreasing production costs and hours worked with the same output. 

Now, these researchers can spend more time towards developing vaccines and treatments, advancements that can help our society. As AI continues to change the way we work, a question still remains. How far can AI take us and what achievements can we make with “more time”?

References 



Federal Reserve Bank of St. Louis, 27 Feb. 2025, https://www.stlouisfed.org/on-the-economy/2025/feb/impact-generative-ai-work-productivity. Accessed 23 Oct. 2026.

Vanderpoel, Julie, et al. “Total Cost of Testing for Genomic Alterations Associated With Next-Generation Sequencing Versus Polymerase Chain Reaction Testing Strategies Among Patients With Metastatic Non-Small Cell Lung Cancer.” Journal of Medical Economics, vol. 25, no. 1, 2022, pp. 457–68, https://doi.org/10.1080/13696998.2022.2053403. PubMed. Accessed 25 Oct. 2026.

National Human Genome Research Institute. “Human Genome Project.” National Human Genome Research Institute, 13 June 2024, https://www.genome.gov/about-genomics/educational-resources/fact-sheets/human-genome-project. Accessed 25 Oct. 2026.