AI and Its Impact on Creativity and Diversity: An Empirical Study of LLM-Generated Product Ideas
Authors: Christian Terwiesch, Lennart Meincke, Karan Girotra, Ethan Mollick, Gideon Nave, Karl T. Ulrich
Organizations: Operations, Information and Decisions Department, The Wharton School, University of Pennsylvania · WHU – Otto Beisheim School of Management · Mack Institute for Innovation Management, The Wharton School, University of Pennsylvania · Cornell Tech and the Cornell SC Johnson College of Business, Cornell University · Management Department, The Wharton School, University of Pennsylvania · Marketing Department, The Wharton School, University of Pennsylvania
Abstract
This research examines how well large language models, or LLMs, generate new product ideas for college students priced under $50. Across a series of studies, we identify key strengths and weaknesses of using LLMs for product innovation. Our first study shows that LLM-generated product ideas have higher average quality than human ideas, based on purchase intent, and are 7 times more likely to rank in the top 10%. Our second study shows that this AI-induced creativity boost is not explained by the LLM's more persuasive pitching skills. Our third and fourth studies identify a weakness of using LLMs for brainstorming: AI-generated ideas are less novel at the idea level and less diverse at the set level. In our fifth study, we analyze prior LLM-based creativity studies and find consistently lower idea diversity across all of them, demonstrating the generalizability of these findings. Our sixth and seventh studies investigate techniques to mitigate this diversity loss. We compare LLMs from different vendors and versions and find that more recent models generate more diverse ideas, though they still fall short of human-level diversity. We also demonstrate techniques that increase idea diversity almost to the level of human idea generation: pooling ideas across vendors; prompt engineering, including Chain-of-Thought prompting and injecting heterogeneous personas or constraints; and creative agents that broadly explore the solution landscape to restore diversity. Finally, in our eighth study, we show that exploiting the near-zero marginal cost of AI idea generation by scaling the number of ideas steadily improves coverage of the idea space, approaching human-level coverage. We conclude by presenting actionable recommendations for innovation managers who want to identify better new product ideas with the help of LLMs.
LLMs are increasingly used to brainstorm research ideas, but existing evaluations mostly judge individual ideas by novelty, feasibility, or expert preference. We instead ask: how far are current LLM-generated ideas from human researchers? To characterize this gap, we build a large-scale evaluation framework for ideation from high-quality human research papers. For each paper, we reverse-engineer a small set of closely related prior works that likely inspired its core idea. LLMs are then prompted to generate a new idea from the set of paper titles and summaries. We introduce a two-axis research-taste taxonomy to profile each idea by its opportunity pattern and research paradigm, and use it to quantify the divergence between human and LLM ideas. Across idea sets generated by different LLMs, we observe a consistent distributional gap: LLM ideas are disproportionately concentrated around bridge-like opportunities and synthesis methods, whereas the human paper reference distribution spreads more broadly across ways of framing gaps and constructing contributions. This result suggests that strong LLMs can produce a range of reasonable ideas, but that range remains narrower than, and systematically shifted relative to, human research taste.
Scientific progress depends on the continual generation of innovative re-search ideas. However, the rapid growth of scientific literature has greatly increased the cost of knowledge filtering, making it harder for researchers to identify novel directions. Although existing large language model (LLM)-based methods show promise in research idea generation, the ideas they produce are often repetitive and lack depth. To address this issue, this study proposes a multi-agent iterative planning search strategy inspired by com-binatorial innovation theory. The framework combines iterative knowledge search with an LLM-based multi-agent system to generate, evaluate, and re-fine research ideas through repeated interaction, with the goal of improving idea diversity and novelty. Experiments in the natural language processing domain show that the proposed method outperforms state-of-the-art base-lines in both diversity and novelty. Further comparison with ideas derived from top-tier machine learning conference papers indicates that the quality of the generated ideas falls between that of accepted and rejected papers. These results suggest that the proposed framework is a promising approach for supporting high-quality research idea generation. The source code and dataset used in this paper are publicly available on Github repository: https://github.com/ChenShuai00/MAGenIdeas. The demo is available at https://huggingface.co/spaces/cshuai20/MAGenIdeas.
LLMs are increasingly used to generate candidate-idea pools for creative tasks where broad exploration is valuable. Parallel inference can be attractive in this setting when it broadens the pool while retaining quality and cost efficiency. We study inference-time controls for candidate-pool diversification, asking whether anchorless methods can rival methods that depend on observed seed ideas. Across three creative task families, we compare independent generation and semantic direction stratification with self-, peer-, and representative-anchor baselines, under neutral and population-referential divergent instructions. Population-referential divergence is a strong low-cost baseline, increasing semantic diversity while preserving quality proxies. Semantic direction stratification is stronger: a single planning call organizes generations across broad semantic directions, yielding the best diversity--quality--compute frontier. Anchored regeneration can be strong in final-pool diversity, but its advantage shrinks under full-pipeline token accounting. These results establish practical anchorless baselines for open-ended LLM ideation.
Fares Nabil Ibrahim, Nafis Saami Azad, Raiyan Abdul Baten