"Last week, in a Fortune 500 boardroom, executives gathered to make a critical pricing decision. They had AI analytics showing optimal price points. They had human intuition about customer relationships. They scheduled two hours. Four hours later, they emerged with the worst possible outcome-a compromise satisfying neither data nor relationships. The AI's recommendations were watered down by politics. Human insights were dismissed as "anecdotal." Everyone left frustrated with a garbage decision."
"Research on human-computer interaction reveals that people either over-rely on automation (automation bias) or under-rely on it (algorithm aversion). Optimal calibration is rare. When teams add AI, social dynamics can create conformity, pressure, and status competition. The desire to be aligned with the self-assured stance of AI tools can encourage people to perform for each other rather than behave critically. The solution requires restructuring how decisions flow through the human-AI system."
"Such cognitive failure is epidemic. Teams add AI like a typical software upgrade when they should be redesigning how organizations operate. The result? They get the worst of both worlds-AI's context blindness plus human cognitive biases, amplified. The solution requires understanding the psychology of human-AI collaboration and implementing a systematic approach to collective intelligence. While AI may not become more capable than everyone on the planet, if your team uses AI correctly, then you could become an unstoppable superintelligent team."
Teams integrating AI without redesigning decision processes suffer combined failures: AI lacks context while humans bring amplified cognitive biases and social dynamics. Organizational meetings can yield compromised outcomes when AI recommendations are politicized and human insights are dismissed as anecdotal. Research shows people either over-rely on automation or under-rely on it, and teams often fail to calibrate appropriately. Effective collaboration requires a single source of truth where AI and humans build decisions together, along with clear handoffs: AI should surface patterns and biases; humans should provide context, ethics, and relationship judgment. Proper restructuring enables collective intelligence and superior team performance.
Read at Psychology Today
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