Submitted:
07 April 2026
Posted:
08 April 2026
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Abstract
Keywords:
1. Introduction
2. Flexible Work Has Stabilized Rather Than Vanished
3. Why the Foundation-Model Stack Matters: Cheaper Coordination
4. Deeper Implications: Latency, Modularity, Control Rights, and Culture
5. A Task-Based Theory of Selective Co-Presence
6. Alternative Views
- View 1: The Frontier Task Objection.
- View 2: The Digital Taylorism Objection.
- View 3: The Skill Atrophy and Apprenticeship Objection.
- View 4: The Mental Health and Social Isolation Objection.
- View 5: The Bounded-Agent Brittleness Objection.
- View 6: The Macroeconomic Lag Objection.
7. A Socio-Technical Research Agenda
- 1. Team-Level and Longitudinal Evaluation Paradigms.
- 2. Scaffolded AI for Apprenticeship and Skill Formation.
- 3. Privacy-Preserving and Interoperable Memory Layers.
- 4. Carbon-Aware Routing and Systems-Level ESG Accounting.
- 5. Pro-Agency Guardrails for Bounded-Agent Workflows.
8. Conclusion
Acknowledgments
Appendix A. Clarifying the Claim
- 1.
- It does not claim that every knowledge work job should become fully remote.
- 2.
- It does not claim that AI by itself guarantees productivity gains; organizational complements remain necessary.
- 3.
- It does not claim that co-presence loses value for onboarding, trust formation, conflict repair, creative synthesis, or highly coupled work.
- 4.
- It does not claim that flexible work is automatically equitable; unequal adoption and excessive surveillance could easily reverse its social benefits.
- 5.
- It does not claim that the office disappears. The claim is that the office becomes more selective, more episodic, and more defensible when tied to specific tasks rather than to habit.
Appendix B. Falsifiable Predictions and Empirical Agenda
- 1.
- A declining co-location premium for artifact-rich tasks. In occupations and teams where work already flows through documents, code, tickets, or customer records, the effect of co-location on measured output should fall as AI adoption rises.
- 2.
- A shift from synchronous reconstruction to asynchronous handoffs. AI adoption should reduce time spent rebuilding context, increase the use of summaries and decision logs, and raise the share of work carried through persistent artifacts even if meeting volume changes more slowly.
- 3.
- Larger short-run gains for novices than for experts on routine coordination. AI should compress some performance gaps on drafting, search, and first-pass problem solving while leaving open whether long-run skill formation still requires more proximity.
- 4.
- Concentrated rather than uniform office use. If the thesis is right, firms with high AI adoption should not simply choose “more remote” in a blanket way. They should reserve co-presence for onboarding, design sprints, conflict repair, and tightly coupled creative work.
- 5.
- Heterogeneous gains by organizational maturity. Teams with strong documentation norms, modular task structures, and clear ownership should realize larger flexibility gains than teams with weak process discipline.
- 6.
- Divergence between autonomy-enhancing and surveillance-enhancing deployments. Organizations that use AI primarily for retrieval, summarization, and support should see stronger retention and flexibility gains than organizations that deploy AI primarily for monitoring and ranking.
Appendix C. Conditions for Falsifiability: What Would Change Our Minds
- 1. Systematic Reversion in High-Adoption Teams.
- 2. Skill Atrophy Dominating Flexibility Gains.
- 3. Unsustainable Mental Health Detriments.
- 4. The Inevitability of Digital Taylorism.
Appendix D. Adoption and Diffusion Notes for the Foundation-Model Stack
| Source | Quantitative or substantive finding | Why it matters for this paper |
|---|---|---|
| Bick et al. [18] | By late 2024, 45% of Americans ages 18–64 had used generative AI; 27% of employed respondents used it for work in the previous week; 10% used it every workday; estimated time savings were about 1.4% of total work hours. | Shows that workplace use is already broad enough to matter for everyday coordination rather than only for frontier technical teams. |
| Bick et al. [19] | Worker and firm surveys from 2025–2026 document large U.S.-Europe adoption gaps and tie diffusion not only to workforce composition but to management practices and whether firms actively encourage AI use. | Supports the claim that flexible-work gains depend on organizational complements, not only on access to a model. |
| Cruces et al. [52] | In a randomized business-problem task, AI access reduced an education-based productivity gap from 0.548 to 0.139 standard deviations, closing about three quarters of the baseline difference. | Suggests that AI can level some execution barriers that previously made expertise location and proximity more important. |
| Daniotti et al. [59] | AI writes an estimated 29% of Python functions in the U.S.; quarterly online code contributions rise by 3.6%; measured benefits accrue mainly to experienced developers. | Indicates that AI already changes artifact production at meaningful scale while producing heterogeneous returns by experience. |
| Humlum and Vestergaard [79] | Rapid chatbot adoption in Denmark coexists with null effects on earnings and recorded hours larger than 2% two years after adoption, despite occupational switching and task restructuring. | Disciplines macro overclaiming: coordination equilibria and job design may shift before short-run wage or hours data visibly move. |
Appendix E. Illustrative workflow Cases
| Function | Pattern under AI-enabled flexibility | Residual value of co-presence |
|---|---|---|
| Software engineering | Retrieval over prior pull requests, code search, test generation, ticket summarization, and bounded agents that prepare patches or update issue trackers reduce the setup cost of distributed development [41,59]. | Architecture resets, codebase-wide conventions, mentoring of juniors, and conflict resolution around ownership or quality standards. |
| Customer support | Copilots surface precedents, summarize cases, draft replies, and standardize follow-up, making asynchronous handling more reliable [40]. | Escalations, emotionally sensitive cases, and norm-setting around exceptions or difficult customers. |
| Writing, analysis, and communications | AI lowers the blank-page tax, rewrites for audience, translates across languages, and reconstructs prior context from long threads or document collections [36,37]. | Message framing under high political stakes, sensitive stakeholder alignment, and training of junior analysts. |
| Professional services and back-office operations | Agents can gather evidence, prefill forms, route approvals, summarize policies, and update CRM or ERP systems across tools [17,38]. | Accountability for exceptions, policy trade-offs, and relationship management with clients or regulators. |
| Product and strategy work | Meeting capture, decision logs, multimodal synthesis, and fast retrieval reduce the lossiness of asynchronous work. | Early-stage ideation, trust formation across functions, hard trade-offs under ambiguity, and coalition building. |
Appendix F. Failure Modes, Rebound Effects, and Guardrails
| Failure mode | Why it happens | Guardrail |
|---|---|---|
| Surveillance drift | Organizations use artifacts primarily for ranking and micro-monitoring rather than for coordination support. | Retention limits, purpose limitation, appeal rights, access controls, and a default presumption against productivity scoring from raw interaction traces. |
| Skill atrophy | Workers delegate exactly the steps through which they would otherwise learn search, reading, debugging, or synthesis. | Scaffolded use, explanation-first copilots, explicit escalation, protected practice tasks, and intentional apprenticeship windows. |
| Stale or misleading memory | Retrieval surfaces outdated, partial, or private material with confident fluency. | Provenance display, freshness checks, deletion and correction rights, and auditable citations to source artifacts. |
| Carbon rebound | Lower attendance does not translate into less office energy use; large-model defaults raise compute emissions. | Floor consolidation, occupancy-responsive HVAC, commute and telework accounting, and carbon-aware model routing. |
| Vendor lock-in of the memory layer | Valuable summaries, logs, and workflow state become trapped inside one product stack. | Exportable artifacts, interoperable APIs, model-agnostic storage, and procurement standards that require portability. |
| After-hours spillover | Faster asynchronous work silently shifts effort into evenings and weekends. | Track after-hours load, delay non-urgent notifications, and evaluate systems partly on whether they reduce rather than displace coordination burden. |
Appendix G. Data Note for Figure 2
Appendix H. Sustainability, ESG, and Climate Note
| Source | Quantitative result | Interpretation for this paper |
|---|---|---|
| Tao et al. [80] | In U.S. scenarios, fully remote work can reduce work-related carbon footprints by roughly 54–58%; hybrid schedules with two to four remote days per week cut footprints by about 11–29%; one remote day is only about 2%. | Climate gains exist, but they are nonlinear and depend on lifestyle and workplace configuration, not merely on using ICT. |
| Shi et al. [75] | In England, working from home three to five days per week yields roughly 3% less to 17% more carbon emissions than conventional work patterns depending on heated area, heating system, heating time, and indoor temperature. | Home energy can offset commuting savings; firms should avoid treating “remote” as automatically low-carbon. |
| Shen et al. [81] | Across 141 U.S. cities, a 1% increase in remote-work share is associated with a 1.8% reduction in daily transportation emissions per capita. | Flexible work can matter at urban scale, especially through transport rather than only individual preference. |
| [82] | Scope 3 Category 7 treats employee commuting as a reportable category and allows teleworking energy to be optionally included. | Workplace design belongs inside corporate climate accounting and should be measured rather than waved at rhetorically. |
| International Energy Agency [76] | The IEA estimates data-centre electricity consumption at about 415 TWh in 2024 and projects around 945 TWh by 2030 in its base case. | AI-enabled flexibility has its own energy footprint; efficient models and carbon-aware deployment matter. |
Appendix I. Foundation-Model Capabilities Relevant to AI-Enabled Flexibility
| Capability class | Concrete examples | Main coordination friction reduced | Main risk or limit |
|---|---|---|---|
| Multimodal capture and summarization | Meeting transcripts, action items, screenshot or slide parsing, extraction from forms and tables | Ephemeral conversation and mixed-format context become reusable artifacts | Consent, privacy, or omission of decisive nuance |
| Long-context reasoning | Reading long email threads, design docs, code reviews, repositories, or hours of audio or video | Less manual reconstruction of work history and rationale | Context cost, brittle synthesis, or stale information |
| Retrieval-augmented memory | Enterprise search over prior decisions, tickets, policies, code, and customer cases | Faster access to precedent and less duplicate work | Provenance errors, privacy leakage, or outdated documents |
| Copilots for writing and coding | Drafting, rewriting, translation, test generation, and code suggestions | Lower blank-page tax and faster first-pass problem solving | Overreliance, homogenization, or hidden defects |
| Workflow agents | Preparing agendas, updating CRM or ticketing systems, pre-filling approvals, and collecting evidence across tools | Less follow-through latency and lower process overhead | Uninspectable actions, brittle automation, or accountability gaps |
Appendix J. Milestones in the Foundation-Model Stack and Their Organizational Consequences
| Phase | Representative capability shift | What became cheaper | Resulting workstyle change |
|---|---|---|---|
| 2022–2023 | Conversational assistants for drafting, explanation, rewriting, and code completion | Self-service problem solving and first-pass artifact creation | Fewer routine interruptions to coworkers; more default-to-draft before asking for help |
| 2023–2024 | Workflow-embedded multimodal copilots inside email, meetings, documents, and coding tools | Turning speech, slides, screenshots, and mixed-format work into usable records | Meetings become easier to summarize and query; more work can continue asynchronously after the call |
| 2024–2025 | Long-context models plus retrieval over tickets, policies, repositories, and prior decisions | Context reconstruction and access to organizational memory | Less dependence on who happens to remember; stronger case for asynchronous handoffs across days and time zones |
| 2025–2026 | Bounded agents that gather context, prepare updates, and move state across tools with human review | Follow-through latency, routine routing, and process overhead | Fewer status pings and manual updates; more emphasis on exception handling and human approval rights |
| 2026+ | Persistent team memory, interoperable artifacts, carbon-aware model routing, and more reliable previewable multi-step workflows | Coordinating flexible work at organizational rather than individual scale | Flexible work starts to look less like an accommodation and more like an operating system, provided governance and energy use are handled well |
Appendix K. Future Scenarios for Workstyle, Culture, and Work-Life Balance
| Scenario | Signature features | Main implication |
|---|---|---|
| Selective co-presence | AI is used mainly for memory, drafting, retrieval, accessibility, and bounded coordination support; on-site time is concentrated around onboarding, design sprints, conflict repair, and tightly coupled work. | This is the high-trust path. It can improve autonomy and reduce commute burdens without treating every artifact as a surveillance object. |
| Digital presenteeism | AI is used to accelerate response expectations, score behavior, expand documentation pressure, and preserve constant visibility even when people are off-site. | Flexibility survives in name but not in lived experience; workers gain location choice while losing boundary quality and discretion |
| Bifurcated flexibility | Senior or artifact-rich roles gain autonomy, while junior, operational, or place-bound roles remain highly monitored and schedule-constrained. | The main risk is not remote versus office, but a wider divide between workers with portable artifact capital and workers without it |
Appendix L. Related Work and Positioning
Appendix M. Extended Literature Map
| Cluster | Representative references | Why the cluster matters for the position advanced in the main paper |
| Cluster | Representative references | Why the cluster matters for the position advanced in the main paper |
| Firm and coordination theory | Ronald [1], Friedrich [2], Allen [3], Garicano [5], Olson and Olson [4], Okhuysen and Bechky [48] | Establishes the baseline claim that organizations and offices historically existed partly to lower search, alignment, and monitoring costs. |
| Knowledge creation, transfer, and visibility | Polanyi [42], Nonaka [43], Grant [44], Argote and Ingram [45], Leonardi [60], Treem and Leonardi [61], Wang and Noe [49], Mesmer-Magnus and DeChurch [50] | Supports the central mechanism that AI changes the economics of codifying, retrieving, and reusing the traces of work without eliminating the residue of tacit knowledge. |
| Expertise coordination in distributed work | Faraj and Sproull [46], Lewis [47], Herbsleb and Mockus [51] | Shows that team performance depends not only on expertise itself, but on whether expertise can be located, trusted, and integrated at the right time. |
| Feasibility and persistence of flexible work | Dingel and Neiman [8], Mas and Pallais [21], Barrero et al. [22], Barrero et al. [23], Buckman et al. [24], Aksoy et al. [25], Aksoy et al. [26], Federal Reserve Bank of St. Louis [27], Gallup [28] | Grounds the claim that flexible work is not a temporary pandemic anomaly and that the plausible long-run equilibrium is selective flexibility rather than universal return. |
| Telecommuting, hybrid design, and productivity | Gajendran and Harrison [29], Allen et al. [30], Bloom et al. [31], Bloom et al. [32], Choudhury et al. [33], Angelici and Profeta [34], Gibbs et al. [35] | Supports the claim that flexible work can be productive under the right complements while preserving the important caveat that effects are heterogeneous. |
| Creativity, ties, mentoring, and career penalties | Yang et al. [9], Brucks and Levav [10], Emanuel et al. [11], Grund et al. [12], Leslie et al. [65], Golden and Eddleston [66], Chung and Van der Lippe [67] | Supplies the strongest reasons not to overclaim: some work genuinely benefits from co-presence, and flexibility can create visibility or promotion penalties when organizations fail to redesign evaluation. |
| AI in real work settings | Noy and Zhang [36], Peng et al. [87], Brynjolfsson et al. [40], Cui et al. [41], Dillon et al. [37], Dell’Acqua et al. [53], Bick et al. [18], Agrawal et al. [56], OECD/BCG/INSEAD [20], Daniotti et al. [59] | Supports the stronger claim that AI changes work patterns through drafting, search, first-pass guidance, and time reallocation, while reminding us that adoption is uneven and complementarities matter. |
| Adoption, skill formation, and heterogeneous returns | Bick et al. [19], Cruces et al. [52], Becker et al. [88], Shen and Tamkin [68], Humlum and Vestergaard [79], Humlum and Vestergaard [89] | Clarifies why AI can simultaneously broaden participation, produce uneven returns, and leave short-run labor-market aggregates surprisingly muted. |
| Foundation-model stack and agents | Achiam et al. [13], Team et al. [14], Lewis et al. [15], Ning et al. [16], Yu et al. [17], Shao et al. [38], Yehudai et al. [78] | Provides the technical basis for the claim that the foundation-model stack reduces coordination frictions through multimodality, long context, retrieval, tool use, and bounded-agent workflows rather than simple text autocomplete alone. |
| Adjacent systems work on harnesses, governed artifacts, and evaluation | He et al. [39], He et al. [69], He et al. [83], He et al. [85], He et al. [84], He et al. [86] | Provides nearby technical and organizational framing that is complementary to, but narrower than, the present paper’s focus on the work-location equilibrium of remote-capable knowledge work. |
| Exposure, inclusion, and unequal adoption | Eloundou et al. [90], Gmyrek et al. [91], Bloom et al. [70] | Connects flexible work to occupational exposure, disability inclusion, and the risk that AI-enabled flexibility benefits some groups much more than others. |
| Sustainability, climate, buildings, and ESG materiality | Marz and Şen [92], Tao et al. [80], Shi et al. [75], Shen et al. [81], [82], Barker [71], International Energy Agency [76], Norouziasas et al. [77], Eccles et al. [72], Khan et al. [73], Friede et al. [74], He et al. [93], Zhang et al. [94], He et al. [95], He et al. [96], He et al. [97] | Shows why the environmental case is conditional and why work design now falls within sustainability accounting rather than outside it. |
| Governance, monitoring, and public spillovers | Kellogg et al. [62], Wood [63], Lane et al. [98], Marz and Şen [92] | Motivates the paper’s governance focus: the same systems that enable portability can intensify surveillance, while broader public effects depend on institutions beyond the firm. |
Appendix N. Suggested Evaluation Metrics for AI-Enabled Flexibility
| Goal | Example metrics | Main failure mode to watch |
|---|---|---|
| Handoffs | Context-reconstruction time, unanswered clarification count, action-item carryover | Summary looks fluent but omits the decisive nuance |
| Institutional memory | Retrieval success on prior decisions, provenance coverage, stale-context rate | Confident retrieval of outdated or private information |
| Onboarding and mentoring | Ramp-up time, escalation quality, novice error rate, mentor time saved | Short-run speed gain with long-run skill loss |
| Worker well-being | After-hours work, task switching, quit intentions, burnout proxies | Productivity gain that simply shifts work into evenings |
| Carbon and resource intensity | Commute emissions, space utilization per FTE, office HVAC hours, incremental telework energy, model carbon intensity | Half-empty offices or large-model defaults make the system look flexible without actually reducing footprint |
| ESG and disclosure quality | Scope 3 coverage, survey response rates, assumption sensitivity, privacy complaints, appeal or override rates | Greenwashing or metric gaming that reports upside while hiding rebound effects and surveillance costs |
| Governance and trust | Monitoring burden, retention period, access control, appeal rate for automated judgments | Coordination tools turning into ranking or surveillance tools |
| Human agency in bounded-agent workflows | Fraction of automated steps previewed, override rate, rollback success, recovery time from bad actions | Convenient automation becomes unreviewable or coercive |
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| Term | Working definition | Why it matters for the thesis |
|---|---|---|
| Knowledge work | Work whose primary inputs and outputs are symbols, judgments, analysis, writing, coding, design, advising, and decisions rather than repeated physical transformation of materials [6,7]. | Sets the outer scope of the paper. |
| Remote-capable knowledge work | Knowledge work whose core tasks can, for substantial periods, be executed through digital artifacts without continuous on-site physical presence [8]. | Narrows the claim to the part of knowledge work that is actually contestable. |
| AI-enabled flexibility | Meaningful choice over where and when work happens, combined with heavier asynchronous coordination and output-based evaluation, with the foundation-model stack reducing the search, memory, handoff, and context-reconstruction costs of distributed work. | This is the paper’s proposed default, not an all-remote ideology. |
| Default operating model | A rebuttable presumption against blanket attendance mandates for remote-capable, artifact-rich tasks unless high tacitness, high coupling, high relational stakes, or evidence of harm justify in-person requirements. | Makes “default” operational rather than rhetorical. |
| Selective co-presence | Intentional in-person time reserved for onboarding, apprenticeship, trust formation, conflict repair, design sprints, and other high-tacitness or high-coupling tasks. | Predicts a narrower and more valuable role for the office, not its disappearance. |
| Tacitness | The share of task performance that depends on judgment, taste, context, or know-how that is hard to specify fully in advance. | Preserves a residual premium for in-person learning and judgment transfer. |
| Coupling | How strongly one person’s progress depends on fast reciprocal adjustment with others rather than modular handoffs. | Preserves a premium for synchronization even when work is partly remote. |
| Artifact capital | Durable, searchable, reusable traces of work state — decisions, summaries, tickets, transcripts, code comments, rationales, exemplars, and retrieval layers — that let context travel across people and time. | Main mechanism through which AI lowers coordination cost. |
| Foundation-model stack | Workflow-integrated foundation-model systems combining natural-language interaction, multimodal capture, long context, retrieval, transcription, translation, and increasingly bounded tool use [13,14,15,16,17]. | Distinct because it lowers the cost of producing, understanding, storing, and routing artifacts within the same workflow. |
| Historical office advantage | AI-enabled artifact or capability | Residual case for co-presence |
|---|---|---|
| Fast clarification, status checks, and meeting follow-up | Meeting copilots extract summaries and action items; draft replies and context-aware retrieval reduce manual reconstruction of context | Ambiguous alignment, sensitive trade-offs, and conflict resolution |
| Institutional memory lived in conversations and in individual heads | Transcripts, semantic search, decision logs, and retrieval over prior work make more knowledge portable and reusable | Norm formation, contested decisions, and culture transmission |
| Expertise clustered around nearby senior workers | Copilots, exemplars, role-adapted explanations, and first-pass guidance lower the penalty for not sitting next to the expert | Apprenticeship, judgment calibration, and tacit know-how |
| Time-zone and language frictions slowed global teamwork | Translation, rewriting, and context compression make asynchronous handoffs cheaper | Real-time co-design for tightly coupled or novel work |
| Routine follow-through depended on nearby administrators or synchronous pings | Agents can prefill forms, update tickets, gather evidence, and route routine approvals across tools | Exceptions, accountability, and ambiguous policy trade-offs |
| Presence served as a proxy for availability and effort | Richer artifacts and machine-readable work traces make output-based management more feasible | Trust calibration — but also a major surveillance risk |
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