Innovating with Generative AI: A Human Bottleneck Framework

Abstract

We propose a human bottleneck perspective for understanding how generative AI transforms the innovation process. The central premise is that many constraints traditionally plaguing the innovation process are cognitive and social in origin, rooted in how people generate ideas, evaluate novelty, and communicate through social systems. Generative AI does not act uniformly on these constraints. At each stage, it can deepen some bottlenecks while alleviating others, and predicting these outcomes requires understanding the underlying mechanisms of the constraint itself. We identify bottlenecks in four stages of the innovation process: ideation, screening and testing, preference measurement and consumer insight, diffusion, and market learning. By grounding analysis in human behavior rather than rapidly changing AI capabilities, we offer a framework for assessing whether new developments alleviate or intensify the bottlenecks that matter most at each stage. We also distinguish bottlenecks likely to narrow as capabilities improve from those rooted in enduring human constraints. We further discuss AI-related issues that cut across the entire innovation pipeline, challenging the very existence and structure of the traditional innovation process.