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The Digital Data Design Institute at ӽ is now the ӽ Business School AI Institute.

Is AI Making Your Team Lazy?

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Exploring the hidden cost of human disengagement from AI

We are rapidly entering an AI era defined by the “agentic” shift. These tools now write code, manage inboxes, conduct research, and execute multi-step workflows without a human lifting a finger. But when AI does more, what happens to the humans at the end of the line? Does the presence of a “perfect” partner actually make us better, or does it slowly erode the very skills and attention required to provide oversight? As we mark the renaming of D^3 as the HBS AI Institute this month, we’re taking a look back at some of our foundational research that defines the era. In “,” HBS AI Institute post-doctoral fellow Fabrizio Dell’Acqua Headshot of Fabrizio Dell'Acqua Fabrizio Dell’Acqua designed a field experiment to test what happens when the quality of AI assistance advances. His findings, it turns out, have serious implications for anyone using AI or in charge of systems where humans and AI share responsibility. 

Key Insight: Falling Asleep at the Wheel

“If the AI appears too high quality, workers are at risk of ‘falling asleep at the wheel’ and mindlessly following its recommendations without deliberation.” [1]

The paper’s central hypothesis begins with a simple behavioral observation: as AI quality increases, the rational incentive to exert one’s own effort decreases. When a tool appears highly reliable, people may stop checking its work closely, stop gathering their own information, and stop exercising independent judgment. Dell’Acqua calls this “falling asleep at the wheel.” The result is a subtle but important distinction between AI performance in isolation and human-AI performance in practice. What matters is not only how good the model is, but how people behave when using it.

Key Insight: The Counter-Intuitive Power of “Flawed” Predictions

“On average, HR recruiters receiving lower-quality AI were less likely to ‘fall asleep’ as they tended not to automatically select the AI-recommended candidate.” [2]

To test this theory, Dell’Acqua conducted a field experiment involving 181 professional HR recruiters who were tasked with reviewing 44 resumes each for a software engineering position. The recruiters were randomly assigned different levels of AI assistance: a “Perfect” AI with approximately 99% accuracy, a “Good” AI with approximately 85% accuracy, a “Bad” AI with roughly 75% accuracy, or no AI at all. Recruiters knew which tier of AI they were working with before starting. The results were clear and striking: recruiters who collaborated with the “Bad” AI actually outperformed those with the “Good” AI. Because the “Bad” AI was clearly imperfect, the recruiters remained vigilant, spending more time on each application and verifying the AI’s claims. This group effectively learned the AI’s weaknesses and improved their own performance to compensate. Those with better AI moved faster and delegated more. 

Key Insight: The Design Implication

“Designing effective structures for human/machine collaboration requires careful consideration of the organization’s objectives and task features.” [3]

Dell’Acqua is careful not to recommend that organizations simply deploy older, worse AI models. The real prescription is more nuanced: design AI systems with human behavioral responses in mind, not just technical performance benchmarks. In settings where people can add value, the design of the interaction becomes a strategic variable. That might mean calibrating AI confidence displays, introducing deliberate uncertainty signals for borderline cases, or creating interfaces that prompt humans to engage before surfacing a recommendation. A system that nudges humans to stay attentive may perform better than one that invites passive approval.

Why This Matters

For executives and business leaders, the lesson here is that combined human-AI performance is its own optimization target, and it might not move in lockstep with AI accuracy improvements. Strategy in the age of AI still requires an understanding of human psychology and effort. If leaders want better outcomes, they need to think beyond technical benchmarks to workflows where their employees remain wide awake at the wheel.

Bonus

This article shows that impressive AI performance can hide important weaknesses. Here, the issue hinges on over-reliance by human collaborators, but at other times it’s caused by the model itself. For example, even highly capable AI systems can still struggle with something as basic as multi-digit multiplication. For a closer look at this, check out When Giants Stumble: What Multiplication Reveals about AI’s Capabilities.

References

[1] Dell’Acqua, Fabrizio, “Falling Asleep at the Wheel: Human / AI Collaboration in a Field Experiment on HR Recruiters,” Working paper, Laboratory for Innovation Science, ӽ Business School (2022), 2. 

[2] Dell’Acqua, “Falling Asleep at the Wheel,” 3.

[3] Dell’Acqua, “Falling Asleep at the Wheel,” 4.

Meet the Authors

Headshot of Fabrizio Dell'Acqua

is a postdoctoral researcher at ӽ Business School. His research explores how human/AI collaboration reshapes knowledge work: the impact of AI on knowledge workers, its effects on team dynamics and performance, and its broader organizational implications.

Watch a video version of the Insight Article here.

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