Machines 'make better decisions than humans do'

While trying to do some research on what leads to bad decision making, I came across this interesting and distracting article about how machines 'make better decisions than humans do'.

http://www.macworld.co.uk/digitallifestyle/news/index.cfm?newsid=3311863&pagtype=allchandate

The article basically starts with the thought that there may be a day when automation takes over human decision making in business. As we recently discussed decision making in class, I thought it would be neat to blog about the idea that machines may one day be used to make the decisions that business leaders make today.

Well the article starts off with what I think is a good point about how managers often rely on gut instincts, experience, relationships, and even financial incentives when it comes to decision making. They include a U.K study where of the 350 largest firms, pay for executives rose 700% since 2002. Of course the firms values only rose 21% and workers pay increased by only 27% in this time period. I feel that this same result would be true for the U.S as well. Ethical or not, it is part of our instincts to make decisions that will benefit ourselves. And I think that the prisoners dilemma theory has taught us all that some people are more willing to compete than others are.

The article continues with some discussion on how humans have a cognitive basis for decision making rather than using a more rational view. Even in hiring, machines have an edge. Talent management software is capable of using statistical assessments, developed by psychologists, to determine which hires would stay with a company longer and be more productive. I feel like this relates to an availability heuristic of decision making as we discussed in class, where frequency and probability are used to make decisions. This would be better as it reduces the chances for biases within the decision making process.

I am not saying that we will have to worry about any I-Robot situations anytime soon, but I do think that it could be possible that some of the new technologies of the future could be tailored toward replacing human decision making in the business field. And while the article focuses on positive benefits of these 'machines', it does state the negatives of more job destruction and increased social divisions.