Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319211 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11843
Publisher: 
CESifo GmbH, Munich
Abstract: 
Student use of Artificial Intelligence (AI) in higher education is reshaping learning and redefining the skills of future workers. Using student-course data from a top Israeli university, we examine the impact of generative AI tools on academic performance. Comparisons across more and less AI-compatible courses before and after ChatGPT’s introduction show that AI availability raises grades, especially for lower-performing students, and compresses the grade distribution, eroding the signal value of grades for employers. Evidence suggests gains in AI-specific human capital but possible losses in traditional human capital, highlighting benefits and costs AI may impose on future workforce productivity.
Subjects: 
generative AI
student achievement
worker productivity
higher education
human capital.
JEL: 
I23
J24
O33
Document Type: 
Working Paper
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