Humans + AI, deciding together
To paraphrase Raymond Chandler, too many projects deliver department store data: The most of everything but the best of nothing. Enterprise AI and analytics developers must avoid the mistake of underserving people by overengineering solutions. Designers and decision makers need straightforward tools to make them better, to save time and facilitate their best work. They […]
As data complexity grows, so does the importance of explaining. The philosophy of science can teach us about the role of explaining in high-quality, evidence-based decisions. It’s not just navel-gazing: An explanation is a statement that makes something clear, or a reason or justification given for an action or belief. It describes “a set of […]
Quantamental is an investment strategy combining quantitative and fundamental methods. Data and algorithms have “prompted many traditional fundamentals-centered discretionary funds to integrate data-driven tools in day-to-day decision-making.” MarketWatch says the quantamental merger of computing power and human expertise is investing’s next frontier. Example: Active trading based on a particular blend of conventional balance sheets and […]
Present everything better! As co-organizer of the meetups Papers We Love – Denver and Domain-Driven Design – Denver, I was delighted to co-host PitchLab for a talk on presentation skills. Jay Mays and Keefer Caid-Loos did an excellent job explaining how to connect with your audience. Participants were engaged, and appreciated PitchLab’s approachable, ask-me-anything attitude. The […]
How we decide is no less important than the data we use to decide. People are recognizing this and creating innovative ways to blend what, why, and how into decision processes. 1. Apply behavioral science → Less cognitive bias McKinsey experts offer excellent insight into Behavioral science in business: Nudging, debiasing, and managing the irrational […]
1. Prior experience → More trust In Trustworthy Data Analysis, Roger Peng gives an elegant description of how he evaluates analytics presentations, and what factors influence his trust level. First, he imagines analytical work in three buckets: A (the material presented), B (work done but not presented), and C (analytical work not done). “We can […]
1. Vigilance → Better algorithms “Eliminating bias… requires constant vigilance on the part of not only data scientists but up and down the corporate ranks.” In an insightful Information Week commentary, James Kobielus (@jameskobielus) considers the importance of Debiasing Our Statistical Algorithms Down to Their Roots. “Rest assured that AI, machine learning, and other statistical […]
Suppose you’ve gotten a cancer diagnosis. Would your business experience help you navigate the care pathway? Larry Neal describes how he applied his Decision Analysis skills to prostate treatment in Eight Lessons from a Decision Professional’s Cancer Decision. When a physician said Neal had a 30% chance of having cancer, but his analysis suggested 95-99%, […]
1. Debiasing → Better decisions Debiasing is hard work, requiring honest communication and occasional stomach upset. But it gets easier and can become a habit, especially if people have a systematic way of checking their decisions for bias. In this podcast and interview transcript, Nobel-winning Richard Thaler explains several practical ways to debias decisions. First, […]
1. Biased instructor response → Students shut out Definitely not awesome. Stanford’s Center for Education Policy Analysis reports Bias in Online Classes: Evidence from a Field Experiment. “We find that instructors are 94% more likely to respond to forum posts by white male students. In contrast, we do not find general evidence of biases in […]