Organizational Technology Ladders: Remote Work and Generative AI Adoption

Research from arXiv suggests that firms progress along an 'organizational technology ladder,' where the adoption of one technology influences the cost and ease of adopting subsequent technologies. Specifically, firms that increased remote work hiring between 2021-2022 demonstrated a higher rate of generative AI mentions in job postings during 2023-2024, indicating a facilitated uptake of new technologies due to prior strategic operational shifts.

Why it matters

This research highlights the interconnectedness of technology adoption decisions, demonstrating that investments in one area can significantly pave the way for future technological integration. For organizations, understanding this 'technology ladder' is crucial for long-term strategic planning, enabling more effective sequencing of technology rollouts and capability development.

Key insights

• Firms operate on an 'organizational technology ladder,' where initial technology adoption alters organizational capabilities and processes.
• The adoption of a technology, such as remote work, impacts hiring practices, work processes, skill development, and organizational capital.
• These changes in organizational capital and capabilities subsequently influence the cost and feasibility of adopting new technologies.
• A 10 percentage point increase in remote hiring during 2021-2022 is estimated to correlate with a 0.4 percentage point increase in job postings mentioning generative AI across firms in 2023-2024.
• This correlation strengthens to a 0.7 percentage point increase across occupations within firms, suggesting a causal link between prior technology adoption and subsequent uptake.

Source

arXiv — Computers and Society — https://arxiv.org/abs/2608.11626