The Future of Decision Making: Human-AI Symbiosis
When we have to make an important decision, we face numerous challenges: uncertainty, complex data that’s difficult to interpret, competing priorities. AI is been touted as game-changer in many business processes, but it seems that computers often add to the burden of data we need to consider, rather than simplifying our decisions. Here are some ways that humans and computers approach decision making differently, and how they can work together to improve each other.
Humans are intuitive; AI is not
While AI is well-suited to augment human cognition in addressing complexity, humans’ ability to operate holistically and intuitively give them the advantage in uncertain situations. While computers are better at routine processing, consistently error-free for repetitive mathematical tasks, and they are increasingly gaining skill in pattern matching and natural-language communication, they are often still lost in uncertain or unpredictable environments. That’s the opportunity for them to work synergistically with people’s superior intuitive judgment. For example, while IBM’s Deep Blue famously defeated chess grandmaster Gary Kasparov in 1997, today, a human player paired with computer programs can easily defeat even the strongest computer on its own.
An analytical approach to making decisions drills deeply into data, but an intuitive approach takes a more abstract and holistic view. To illustrate: computers aren’t very good at being creative. People are very creative, but it’s hard for them to weigh which of their ideas are the best, or how to combine them. Software can augment human creativity by quantifying their ideas and showing which of them are most likely to bring optimal results.
In 2016, Reid Hoffman, executive chairman and co-founder of LinkedIn, predicted that “AI-powered dashboards will provide forward-looking, predictive intelligence that will deliver a whole new level of insight to managerial decision making. Computers won’t be making decisions for us, but they can sift through vast amounts of data to highlight the most interesting things, at which point managers can drill down, using human intelligence, to reach conclusions and take actions.” We think he was right- there are many specialized tools that generate new knowledge in the form of all levels of insights- but even so, the user is left asking “what does this mean for me?”. The leap from knowledge generation to decision making is where we may now have an answer.
Humans are social; AI is not
Even if a computer manages to determine the “optimal” decision, a machine would have a hard time selling it to a diverse set of stakeholders, some of whom might be disadvantaged by that decision. Humans are social beings, and operate in a labyrinth of complex, often informal social systems that currently are beyond the understanding of computer algorithms. One of the most important responsibilities of business leaders is to provide vision and objectives for their organization, and then to convince others—both within and outside their organization—of why they matter. Getting others on board requires emotional and social intelligence, something that machines do not possess.
As a result humans have the upper hand in understanding the convoluted social and dynamics that surround decision-making situations, particularly when there are competing social priorities at stake, and outperform machines in social skills such as persuasion and negotiation.
At the same time, getting humans on board with AI initiatives can be fraught with challenges, as employees may distrust technology and fear their jobs may be eliminated. To be successfully implemented in an organization, AI needs to be integrated within its social fabric, augmenting human capabilities rather than replacing them. It needs to be treated as a tool for employees to draw upon in their work, and one that they can understand and trust. If an AI initiative pits people against technology, it is doomed to failure (see “Digital Transformation- a $900B failure this year alone“).
How diwo augments human capabilities
We bandy “AI” about quite liberally, but it’s not the answer in itself (“AI’s dirty little secret“). AI capabilities can be leveraged synergistically if it’s part of a larger cognitive system. When a business adopts diwo’s cognitive decision-making framework, they benefit from the unique strengths of powerful analytics and machine learning, in a platform that builds trust with users. diwo provides explanations for its recommendations, and enables users to easily share quantified decisions with others within the platform for increased collaboration between departments. By virtue of the shared context, it builds shared ownership.
diwo also augments human creativity and intuition in uncertain environments. Unlike other AI platforms, it takes a holistic approach, focusing on each user’s specific business context. diwo in effect “quantifies your intuition” by allowing you to explore the effects of potential decisions, tweaking different elements to explore different strategies, or adapt diwo’s recommendations as desired.
Human-AI symbiosis means that humans can learn to apply AI’s capabilities more effectively over time, while simultaneously AI adapts to each user and the situation with every interaction. The end result is more powerful than either humans or computers alone.
How banks can leverage AI to better manage pandemic relief programs
The recent massive economic shifts due to COVID-19 have driven up risk for the vast majority of financial services institutions. Customer sentiment, spending and behavior... + 2020-07-28
Financial Services: Preparing for the Looming Credit Crisis
The COVID-19 pandemic has significantly affected financial institutions – slowing the growth of loan originations, increasing credit costs, contracting economic activity, and causing record levels... + 2020-05-15
Can retailers find strategies that balance short-term recovery with long-term sustainability to lead them out of the COVID-19 crisis?
Retail and fashion business leaders are currently focusing on business continuity (“keep the lights on”) and crisis management (“sell the right stuff”), but soon they... + 2020-05-05
Transforming Business Decisioning in the Pandemic era is more crucial than ever.
Our human tendency toward incremental thinking limited us from foreseeing how “a few cases of the flu” would balloon into the impact we see today.... + 2020-05-01
Surviving COVID-19: How can Retailers free up working capital tied-up in inventory?
Among the many sectors affected by COVID-19, retail will be one of the hardest hit. The sudden decline is attributed to country-wide store shut-downs and... + 2020-04-23
Don’t let your shiny AI models lose their luster!
Businesses have made significant investments in building AI/ML models in recent times. While models are increasingly driving significant operational efficiencies and differentiation for businesses, they... + 2020-04-22
AI Modeling in the time of Covid-19
Companies of all sizes are facing unprecedented uncertainty and challenges due to the global impacts of COVID-19. It has created a major systemic shock to... + 2020-04-14
How to derive value from your AI investments with Decision Intelligence
Ultimately, a company’s value is measured by the sum of its decisions. In order to succeed, the organization must make and execute decisions—across all levels... + 2020-01-24
Why isn’t my enterprise getting value from AI at scale?
Why do most AI initiatives for business fizzle out? Why do so many teams’ best efforts to develop or deploy new algorithms or predictive models... + 2019-11-21
Here’s why you’re probably losing the AI race
As the AI arms race is becoming more heated, more organizations are looking to beef up their competitive advantage... + 2019-08-01
Data In Wisdom Out
I am often asked by the curious, what do we actually mean by “wisdom out”. Is it just a marketing ploy or is there something more to it?... + 2018-10-31
Is Data a source of value?
We have always been exposed to natural and man-made events and have wondered and been impacted by their outcomes... + 2018-10-16
The Future of Decision Making: Human-AI Symbiosis
When we have to make an important decision, we face numerous challenges: uncertainty, complex data that’s difficult to interpret, competing priorities... + 2018-09-20
Digital Transformation- a $900B failure this year alone
Digital transformation has become a major priority for most organizations in some form or another, but for many, it’s proving to be quite the challenge... + 2018-09-20
So What’s AI’s Dirty Little Secret?
One could read the massively hyped claims of the trillions in productivity gains and then how far AI still has to go for real-world application... + 2018-09-20
How AI can rescue your BI “situation”
Even with a few credible upstarts in the past couple years, Self-Service BI still seems to be dominated by some large players that also require some very large and "very ongoing" commitments... + 2018-03-20
Business First! – how diwo aspires to flatten the knowledge pyramid
We can all agree on the fact that we are sitting on an unprecedented volume of data, and it is continuing to accumulate exponentially... + 2017-09-18
The Growing Market Impact Of AI
The future is always uncharted territory, and in the hype that currently sorrounds AI, with its ambiguous... + 2017-09-18
AI: How It Will Redefine My Job?
In the past few years, there has been an explosion in innovation and interest around Artificial Intelligence... + 2017-09-18
Wait Less, Sense More, Act Fast!
“If I had more legs, I could walk faster. If I had more hands, I could handle more, and if I had extra senses, I could respond wiser” – did you ever wish that?... + 2017-09-11
Unlocking the holy grail of UX design: bias-free user feedback in real time!
The potential of measuring emotional feedback from users is an exciting proposition in many fields, not least because it offers the possibility of unlocking... + 2017-07-25
What’s the Deal With AI Connectors
Artificial Intelligence (AI) is changing our lives, and these days feels more omnipresent than ever before. From Siri to autonomous cars... + 2017-07-25
Business Analytics-Why Search is Not Enough
Due to the popularity of internet searches, many businesses have attempted to adapt the search paradigm to tame their own unruly document clutter... + 2016-09-15
Drowning in data? Still no excuse for inaction!
Wouldn’t it be fantastic if we had a total understanding of the laws governing the reality around us? Imagine for a... + 2016-09-15