Finger Lakes Today

Increased worker mobility can negatively impact a business's ability to adopt new technology such as artificial intelligence (AI), according to a recent study conducted by researchers at Cornell University.

The study, co-authored by Chris Forman, along with Ruyu Chen and Natarajan Balasubramanian, delves into the effects of worker mobility on the adoption of new technologies, specifically focusing on machine learning. Forman, the Peter and Stephanie Nolan Professor in the Dyson School of Applied Economics and Management at Cornell SC Johnson College of Business, sheds light on the research findings that suggest a correlation between worker mobility and businesses' risks of losing skilled employees crucial for implementing new technologies.

The research team utilized changes in the enforceability of noncompete agreements at the state level as a natural experiment condition to analyze how worker mobility influences technology adoption. By examining over 153,000 organizations between 2010 and 2018, the researchers discovered significant insights into the impact of worker mobility on the adoption of machine learning.

Forman highlighted the study's results, stating that changes enabling worker mobility were linked to a decline in the likelihood of businesses adopting machine learning, particularly in the presence of large competitors in the same industry and location. This highlights the heightened risks faced by businesses when skilled workers possess numerous outside job opportunities.

The study emphasizes the crucial role of worker mobility in shaping technology adoption decisions and business innovation. It provides a deeper understanding of how skilled employees leaving a company can diminish the incentives for businesses to invest in and adopt new technologies.

Forman also pointed out that the study's framework and data analysis open avenues for further research, stating, "Similar findings may arise in the early years of the diffusion of other technologies in which firms need to make new technology-specific investments that increase the human capital of workers."

In conclusion, the study underscores the importance of considering worker mobility in the context of technology adoption and its implications for businesses striving to innovate and stay competitive in rapidly evolving industries.

Sarah Magnus-Sharpe, the director of PR and media relations for the Cornell SC Johnson College of Business, provided insights into the study, showcasing the critical role of research in understanding the dynamics between worker mobility and technology adoption.