While industry 4.0 technologies like artificial intelligence, robotics, and the Internet of Things will change the division of labor between humans and technology, there will still likely be humans working and collaborating as these technologies proliferate. However, the adaptivity and connectivity of these technologies suggest that they are likely to affect the work of teams more dramatically than past technological revolutions. As these technologies diffuse, they may substitute for teamwork or provide information that can enhance it. We study how teams interact in two different phases of industry 4.0 technology adoption using lab experiments in which 3 person teams operated a simulated factory. We perform a second exploratory experiment to uncover the mechanism driving changes in teamwork during a transitional phase of technological change. We then design and perform a third lab experiment to explore how explanations of how the AI forms its recommendations may influence team dynamics and performance.
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