PSYCHOLOGY

You Trust The Algorithm More than The Human

Algorithmic Judgment Is Trusted More than a Human’s, as Recent Harvard Business School Study shows

Andy Chan
The Startup
Published in
6 min readOct 6, 2019

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It is a fact that computational algorithms often outperform human judgement.

For instance, companies created algorithms to predict consumer behaviour. Organisations use algorithms to help predict when their employees will leave. Traders create algorithms to help them make the best automatic trades, based on myriad data points.

When we have a problem, we seek advice from other people. The rise of ‘big data’ has also given rise to a new source of advice: algorithms, which boast superior accuracy, capacity, and speed, relative to human judgment.

It explains the global shift in money pouring into artificial intelligence and machine learning companies—with a CAGR of 36.2% and set to grow to a USD$208.49bn industry by 2025.

Organisations and individuals are often using algorithms, whether consciously or unconsciously. Spotify recommends songs based on our playlist and frequently listened-to songs. We discover new shows and movies on Netflix via their recommendations. Facebook promotes content we may like as well as posts from our close friends.

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Andy Chan
The Startup

Product design @ Delivery Hero. I write about pretty much anything I want to write.