Book Summaries

Richard H. Thaler (What to think about machines that think)

Richard H. Thaler provides insights on the relationship between artificial intelligence (AI) and human decision-making. He shares two humorous anecdotes that frame his perspective on AI: 1. Natural Stupidity vs.

January 12, 2022Book Summaries

Richard H. Thaler provides insights on the relationship between artificial intelligence (AI) and human decision-making. He shares two humorous anecdotes that frame his perspective on AI:

  1. Natural Stupidity vs. Artificial Intelligence: Thaler cites a joke from Amos Tversky, a renowned psychologist, who humorously remarked that his expertise was in “natural stupidity” rather than artificial intelligence. Tversky’s quip highlights the complexity of human behavior.

  2. Reluctance to Let Computers Take Over Tasks: Thaler expresses concerns about society’s hesitance to allow computers to take over tasks where simple statistical models outperform humans. He cites examples from human-resource management and sports decision-making.

– Job Interviews: Thaler mentions that despite research showing that interviews are ineffective in predicting job performance, they continue to be a prevalent part of hiring processes. He attributes this to the illusion that interviewers believe they are exceptional at assessing candidates, even though empirical evidence contradicts this belief.

– Sports Decision-Making: Thaler references the book “Moneyball” and the use of data analysis in sports. While data analysts provide valuable insights, final decisions about player selection and strategies are often made by coaches and managers who rely on intuition rather than data-driven recommendations.

Thaler’s conclusion is that, rather than worrying about computers taking over the world, society should first consider whether people are willing to trust computers to make decisions where they already outperform humans. He highlights the resistance to change in various domains despite the availability of more effective decision-making tools.

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