AI agents increasingly perform knowledge work (i.e., produce and modify persistent digital artifacts such as code repositories, documents, spreadsheets, slides, reports), yet the parsed views they search, the native files they edit, the changes they review, and the artifacts they submit can refer to different versions of the same work product. We formulate this as a workspace-state contract: every view should be explicitly tied to a version of the evolving workspace state. Coding agents partly address this need through repository contracts for search, diffs, and tests, whereas an analogous contract is less explicit for PDFs, spreadsheets, slides, notebooks, and mixed-format project folders. We propose StagedWorkspace, a versioned workspace for knowledge-work agents. The workspace binds parsed records and review diffs to content hashes of the native files as they change. In fixed-harness ablations on OfficeQA Pro and APEX-Agents, dual parsed/native access has the highest point estimate for every tested model; relative to the more limiting single view, it improves OfficeQA Pass@1 by 8.3-12.1 points and APEX mean rubric score by 4.7-9.2 points. SW-AGENT scores 63.9% with Gemini 3.1 Pro on OfficeQA and 42.1 with GPT-5.4 Nano on APEX, compared with published same-model scores of 29.3% and 25.5, respectively. A paired review-axis ablation on 57 file-editing tasks further finds higher observed scores when diffs are visible. These results identify workspace state as an experimental variable in knowledge-work agents and motivate benchmarks that score evidence, staged edits, and submitted artifacts as explicit state transitions.
Large language models (LLMs) are improving rapidly as reflected in benchmark scores, yet these AI benchmarks largely test capabilities such as factual recall, narrow question answering, mathematical problem-solving, and coding and agentic tool-use. What remains poorly measured is AI progress on the analytical knowledge work white-collar professionals perform daily, including synthesizing complex information, exercising judgment under uncertainty and incomplete information, applying strategic and adversarial thinking in multi-stakeholder settings, weighing trade-offs, and producing defensible, structured analyses. This gap is even more pronounced for subjective components of such work, where success can be challenging to define. The "case method" form of education practiced by top business schools provides a natural foundation for addressing this measurement gap, and we construct BusinessCaseBench, a benchmark spanning hundreds of questions drawn from business cases across eighteen disciplines, each paired with a grading rubric derived from the expert-written instructor case solution. On BusinessCaseBench, frontier AI models already score highly against instructor rubrics, and capability within one model family improves substantially over two years. These results provide strong evidence that AI performance on this class of work is already high and rapidly improving, with implications for business schools, where case pedagogy trains undergraduates and MBAs in this kind of analytical reasoning, and for entry-level professional roles, where such skills have historically anchored early-career work.
Sharp et al. (2025) introduce "agentic inequality" as a framework for analyzing disparities in access to AI agents across three dimensions: availability, quality, and quantity. These person- and organization-level dimensions characterize who can access agents and at what capability, but do not address a structurally important divide operating at a finer level: the individual interaction. Two users with nominally equivalent agent access may experience qualitatively different AI utility depending on whether the system can autonomously retrieve context from the user's knowledge corpus (Dynamic Context Retrieval) or requires the user to manually identify and attach relevant documents at each query (Manual Attachment). We term this the Context Access Divide (CAD). For knowledge-intensive workers whose intellectual capital spans tens of thousands of files, the CAD constitutes a qualitative threshold in AI usefulness: below it, the cognitive burden of context curation falls on the human, reproducing the inefficiencies AI is meant to eliminate. We propose contextuality -- the degree to which an AI system autonomously accesses a user's accumulated knowledge capital -- as a dimension of AI-mediated inequality that complements, but is not reducible to, the Sharp et al. framework. We formalize the CAD with a probabilistic model grounded in the fan effect literature in cognitive psychology, demonstrating that manual context attachment leads to a combinatorial collapse in task-success probability as corpus size and task conjunctivity grow, while dynamic retrieval architectures are structurally insulated from this collapse. We analyze the technical basis of this divide in the Model Context Protocol (MCP) and retrieval-augmented generation (RAG) architectures, and examine its implications for knowledge-work stratification and AI platform governance.
Jeremy Yang, Kate Zyskowski, Noah Yonack +1cs.AI econ.GN
Frontier AI systems are bridging the gap between intelligence and utility by shifting from conversational assistants to autonomous agents that execute tasks end to end. Using production data from Perplexity's Search and Computer products, we study this transition by examining how AI agents accelerate and reshape knowledge work. Three key empirical findings emerge. First, using sessions with near-identical initial query pairs as natural experiments for the same underlying task attempted with both products, Computer performs 26 minutes of autonomous work per user session, versus 33 seconds for Search. Computer automates task decomposition and execution that Search users might otherwise manually orchestrate and implement. As a result, Computer shifts follow-up query distribution toward higher-order work such as verification and extension. Autonomy also increases execution quality, with per-query dissatisfaction rates 55% lower on Computer than on Search. Second, due to its autonomy advantage, Computer reduces completion time from 269 to 36 minutes on matched tasks, lowering estimated time and cost by 87% and 94%, respectively, compared to humans equipped with Search alone. Third, Computer changes the scope of work that users attempt: Computer queries more often cross occupational boundaries, require higher-order cognition, draw on broader expertise, take the form of composite tasks that bundle interdependent subtasks into a single query, and unlock work activities that are essentially absent from Search usage among the same users. Together, the evidence indicates that AI agents accelerate workflows, enhance output quality, reduce costs, and expand the breadth and depth of automated work.