The Augmentation Trap: AI Productivity and the Cost of Cognitive Offloading

New research reveals that while AI tools boost short-term worker productivity, sustained use erodes the underlying skills that enable those gains. The study identifies an 'augmentation trap' where workers can become less productive than before AI adoption due to skill deterioration over time.

• →AI tools provide immediate productivity gains but cause long-term skill erosion in workers who rely on them heavily.
• →Decision-makers may rationally adopt AI even when anticipating skill loss if short-term gains outweigh long-term costs.
• →The 'augmentation trap' occurs when workers end up worse off than if AI had never been introduced.
• →Experienced workers may thrive with AI while inexperienced workers risk complete deskilling, creating permanent skill divergence.
• →Managerial incentives and time horizons play crucial roles in determining whether AI deployment benefits or harms workers.