The Futzing Fraction
9 days ago
- #Productivity
- #ROI
- #Generative AI
- Generative AI is envisioned to reduce tedious tasks in knowledge work, but using it can be tedious itself.
- Evaluating the ROI of generative AI involves considering costs like time spent checking outputs and re-prompting.
- The 'Futzing Fraction' is introduced as a framework to measure the cost-effectiveness of generative AI, comparing time saved versus time wasted.
- Human oversight is crucial when using generative AI to prevent errors and ensure outputs are correct and useful.
- Generative AI can disrupt mentorship by providing incorrect information to junior employees, leading to wasted time and confusion.
- Cognitive biases can lead to overestimating the effectiveness of generative AI, similar to gambling mechanics.
- The accuracy of generative AI is often overestimated, and real-world performance may require multiple prompts to achieve usable results.
- Long-term use of generative AI may lead to skill atrophy among employees and increased workload for senior staff.
- A comprehensive measurement program is needed to evaluate the true impact of generative AI on productivity and costs.