Friday, October 15, 2021

g-f(2)568 THE BIG PICTURE OF THE DIGITAL AGE (10/15/2021), MIT SMR, The Human Factor in AI-Based Decision-Making




ULTRA-condensed knowledge


"g-f" fishing of golden knowledge (GK) of the fabulous treasure of the digital age, Artificial Intelligence, AI-Based Decision-Making (10/15/2021)  g-f(2)426 


Lessons learned, MIT SMR 


    • To take advantage of AI’s full potential, companies need a human-centered approach to addresses the cognitive dimension of human-machine interactions beyond automation.
    • Facing identical AI inputs, individuals make entirely different choices based on their own decision-making styles.
    • Most strategic AI-based decisions in organizations are hybrid forms that heavily rely on human judgment, requiring executive interaction with the AI-based system. In fact, 87% of managers believe that such hybrid approaches will emerge as the dominant form of human-machine collaboration in the future.
    • Research has shown that executives differ substantially in making decisions, depending on their individual styles — the patterns they prefer and typically follow when confronted with a choice.
    • By acknowledging potential human bias in AI-informed decision-making, leaders can accordingly design processes to champion AI in the boardroom. With the right balance of analytics and experience, AI-augmented decision processes can increase the quality of an organization’s most critical choices, thus driving tremendous value for companies in an increasingly complex world.


                      Genioux knowledge fact condensed as an image




                      References


                      The Human Factor in AI-Based Decision-Making, Philip Meissner and Christoph Keding, October 12, 2021, MIT Sloan Management Review, MIT SMR. 



                      Extra-condensed knowledge


                      Lessons learned, MIT SMR 


                      • Research has shown that executives differ substantially in making decisions, depending on their individual styles — the patterns they prefer and typically follow when confronted with a choice. Such individual differences are based on information processing and self-regulation, as well as the perceived urgency of the decision and their cognitive approach to making choices. Decision-making styles tend to induce an individual’s consistent response patterns across decision tasks and situations.
                      • There are four main styles of decision-making: Rational decision makers are structured and logical in their assessment of strategic challenges. In contrast, intuitive-spontaneous decision makers rely on their emotion and tend to make spur-of-the-moment decisions. Dependent executives seek assistance and support from others when making decisions, while avoidant leaders postpone making decisions.




                        Condensed knowledge




                        Opportunity 

                        Successful AI Integration in Decision-Making, MITSMR


                        • Organizations should follow three strategies when integrating AI into their decision-making processes.
                          1. Create awareness. Because individuals make entirely different choices based on identical AI input, executives should be aware of their personal tendencies (or biases) when interacting with AI. 
                          2. Avoid risk shift and the illusion of control. We were struck by the degree to which some executives transferred the risk of decision-making to AI — and by the complete opposite, as other executives were unwilling to cede an inch of their control to technology. To avoid risk shift, organizations must emphasize that the ultimate decision authority stays with the executive, even if AI is involved. 
                          3. Embrace team-based decisions. Balancing out the predominant tendencies of the three decision-making archetypes in teams may help them to avoid choices that are overly risky or risk averse. 


                        Some relevant characteristics of this "genioux fact"

                        • Category 2: The Big Picture of the Digital Age
                        • [genioux fact deduced or extracted from MIT SMR]
                        • This is a “genioux fact fast solution.”
                        • Tag Opportunities those travelling at high speed on GKPath
                        • Type of essential knowledge of this “genioux fact”: Essential Analyzed Knowledge (EAK).
                        • Type of validity of the "genioux fact". 

                          • Inherited from sources + Supported by the knowledge of one or more experts + Supported by research.


                        References


                        “genioux facts”: The online programme on MASTERING “THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)568, Fernando Machuca, October 15, 2021, blog.geniouxfacts.com, geniouxfacts.com, Genioux.com Corporation.


                        ABOUT THE AUTHORS


                        PhD with awarded honors in computer science in France

                        Fernando is the director of "genioux facts". He is the entrepreneur, researcher and professor who has a disruptive proposal in The Digital Age to improve the world and reduce poverty + ignorance + violence. A critical piece of the solution puzzle is "genioux facts". The Innovation Value of "genioux facts" is exceptional for individuals, companies and any kind of organization.




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