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They report that the app shortened the search for customers by 5% on average and by 7% for low-skilled drivers, with a near-zero effect for high-skilled drivers. The 2022 working paper puts the narrowing of the productivity gap at 14%, and the version that Management Science published in February 2026 puts it at 13.4%. Drivers chose when to turn the app on, which the authors address with fixed effects and an instrument based on how unfamiliar the driver was with the area. More than half of the drivers offered the app never tried it. The study covers one city for one month. The company supplied the data, the authors report no financial support from it, and Japanese public research agencies funded the work.","category":"general benefit","unexpected":false,"purpose":"AI Navi was built to help taxi drivers find customers while cruising. 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AI, Skill, and Productivity: The Case of Taxi Drivers. Management Science. 2026;72(2):1376-1388. doi:10.1287/mnsc.2023.01631 (publisher abstract as deposited with Crossref).","title":"AI, Skill, and Productivity: The Case of Taxi Drivers","url":"https://doi.org/10.1287/mnsc.2023.01631","date":"2026-02-01","written_by":"independent","quote":"this gain is accrued only to low-skilled drivers, narrowing the productivity gap between high- and low-skilled drivers by 13.4%"},{"kind":"preprint","citation":"Kanazawa K, Kawaguchi D, Shigeoka H, Watanabe Y. AI, Skill, and Productivity: The Case of Taxi Drivers. 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