Welsh businesses investing in artificial intelligence could be creating additional work rather than improving productivity, as growing use of AI-generated emails, documents and automated processes raises questions about whether the technology is delivering genuine efficiency gains.
This was just one of the findings of the recent Business News Wales AI, Tech and Innovation editorial board.
While AI tools are making it easier for employees to produce information, complete administrative tasks and automate routine activities, the speed at which work is generated does not necessarily mean organisations are becoming more productive. In some cases, the technology could simply be transferring work between employees or introducing additional layers of information that others must review, interpret or process.
The challenge is becoming increasingly relevant as businesses explore how AI can improve their operations and justify investment in new digital technologies. Although individual employees may be able to demonstrate significant time savings, those improvements can be difficult to translate into measurable benefits across an entire organisation.
One example is the growing use of AI to generate workplace communications. An employee can use the technology to produce a lengthy email or briefing document in seconds, only for the recipient to use another AI tool to summarise the information into something more manageable. Both individuals may have completed their respective tasks more quickly, but the overall exchange raises questions about whether the technology has reduced the amount of work involved or simply changed how it is carried out.
For employers, this highlights the importance of looking beyond individual tasks when assessing the benefits of AI adoption. The ability to generate more content is not necessarily an indication of greater productivity, particularly where that information creates additional demands on colleagues, customers or other parts of the business.
A similar challenge can arise when organisations introduce AI into more complex processes involving several stages of decision-making. Recruitment, for example, offers opportunities to automate activities ranging from drafting job advertisements and identifying potential candidates to preparing applications and screening responses.
In a hypothetical recruitment process, an employer could use AI to generate a vacancy advertisement, while applicants use similar technology to identify opportunities, tailor their CVs and prepare applications. Another AI system could then assess the submissions and produce a shortlist for a hiring manager to review.
Although each stage may appear more efficient, the overall process does not automatically guarantee better recruitment outcomes. The employer may still need to establish whether applicants are genuinely suited to the position, whether important information has been overlooked and whether the technology has improved the quality of the final decision.
This distinction between completing tasks faster and achieving better business outcomes is likely to become an important consideration for organisations investing in AI.
There is also a risk that employees place too much confidence in AI-generated information simply because it is presented clearly and produced quickly. A polished document, detailed report or automated recommendation may appear convincing without necessarily addressing the underlying business requirement, making professional judgement and appropriate checks essential parts of the process.
As AI adoption continues to develop across the Welsh economy, businesses will increasingly need to distinguish between technological activity and measurable commercial value. The number of employees using AI, the volume of content generated or the time saved on individual tasks may provide useful indicators, but they cannot independently establish whether an organisation is operating more effectively.
The wider productivity opportunity lies in ensuring that AI improves the quality, efficiency and outcomes of work across the business, rather than simply enabling employees to produce and process more information.
For Welsh companies seeking to strengthen competitiveness through technology investment, the real measure of success will be whether AI reduces unnecessary effort, supports better decisions and delivers improvements that can be recognised throughout the organisation.
