Understanding AI in Business Contexts AI Session 5

Podcast

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Questions and Answers

What is a major risk associated with overconfidence bias in problem-solving?

Identifying a variety of potential solutions

Developing a thorough understanding of the problem

Collecting excessive data from multiple sources

Underestimating the complexity of the problem (correct)

Narrow framing pitfall primarily results from which cognitive biases?

Representation and elimination bias

Availability and confirmation bias

Availability and representation bias (correct)

Framing and consistency bias

Why is it important to avoid confirmation bias in decision-making?

It allows for a more balanced view of the evidence (correct)

It ensures that only favorable evidence is accepted

It eliminates the need for data collection

It makes the problem-solving process faster

What is a common consequence of relying on analogy in problem-solving?

Misidentifying the core issues Signup and view all the answers

What might be a symptom of poor product quality?

Decline in revenues Signup and view all the answers

What can be a negative effect of poorly framed problems?

Narrowed view leading to superficial solutions Signup and view all the answers

How does randomness play a role in problem-solving?

It influences the retrieval of past information Signup and view all the answers

What method can be employed to mitigate biases in data collection?

Incorporating diverse perspectives and comprehensive data Signup and view all the answers

Which aspect of AI can significantly enhance problem-solving capabilities?

AI's use in generating creative solutions through data insights Signup and view all the answers

What is the significance of question formulation in the problem-solving process?

It shapes the analysis and understanding of the problem Signup and view all the answers

What is one method suggested for mitigating bias in decision-making?

Providing education about unconscious biases Signup and view all the answers

Which of the following approaches is described to modify the environment to mitigate biases?

Creating situations where bias is irrelevant Signup and view all the answers

What role does AI play in enhancing problem formulation?

AI can help in asking better questions Signup and view all the answers

Which is NOT a recommended approach for creating catalytic questions?

Providing predetermined answers in prompts Signup and view all the answers

Why is question formulation considered important in problem-solving?

It helps spark change through catalytic questions Signup and view all the answers

What is a challenge in using AI as a creative engine?

AI requires human guidance for framing questions Signup and view all the answers

Which of the following is NOT a characteristic of AI-enhanced problem-solving?

Question simplicity Signup and view all the answers

What is a crucial aspect to consider when leveraging AI for generating new ideas?

Combining existing concepts in unique ways Signup and view all the answers

In the context of decision-making, what is meant by 'modifying the decision maker'?

Educating individuals about their biases Signup and view all the answers

In data collection, which approach should be prioritized to ensure reliable outcomes?

Adopting a thorough sampling approach Signup and view all the answers

Which of the following describes a benefit of relying on evidence in problem formulation?

It provides a systematic approach to inform decisions Signup and view all the answers

How can biases in question formulation affect the performance of LLMs?

They might influence the AI's understanding of context Signup and view all the answers

What is essential for creating environments that help mitigate bias?

Incorporating diverse viewpoints actively Signup and view all the answers

What is a key benefit of using AI for data cleansing?

Automation of error detection and correction Signup and view all the answers

What should one be cautious of when using LLMs to solve problems?

Their potential to confabulate information Signup and view all the answers

Which technique can enhance the analysis of data using AI?

Employing diverse datasets for insights Signup and view all the answers

What characterizes effective prompting when utilizing AI?

Including clear and concise inquiries Signup and view all the answers

Why is it important to understand the limitations of LLMs?

To improve their integration into decision-making processes Signup and view all the answers

Which aspect is critical when interpreting evidence gathered from data?

Considering relevant variables and context Signup and view all the answers

What common pitfall should users avoid when formulating questions for AI?

Using biased or leading questions Signup and view all the answers

Study Notes

Understanding AI in Business Contexts - PGE M1

This presentation is about using AI for problem-solving in business contexts.
The presenter, Ambra Mazzelli, is an Associate Professor at SKEMA Business School.

Who Am I? (Presenter's Background)

Holds degrees in Industrial Engineering (Bachelor and Master's) from Università degli Studi di Bergamo.
Completed a PhD in Management at Lancaster University.
Visited Harvard University.
Held postdoctoral fellowships and research affiliations with universities in various countries (UK, Canada, USA, and France).
Worked as an assistant professor of management and organizations at the Asia School of Business (MIT Sloan).
Currently an associate professor at SKEMA Business School, Grand Paris Campus.
Consults and advises managers/executives in multinational companies.
Has a background in family business and hospitality industry.

Agenda

Preview of the topic.
How humans think.
Human bias in problem-solving.
Reducing human biases through AI.
Perils of using AI for problem-solving
Practical implementation of AI in problem-solving.
Concluding remarks.

AI-Enhanced Problem Solving

Problem-solving often involves trade-offs.
This session explores the benefits and limitations of using AI for problem-solving.
The presentation will include an orientation guide for using ChatGPT for problem solving.
Note: Some instructions are based on the presenter's experience with ChatGPT and not necessarily based on scientific evidence.

How Humans Think (Section II)

Slides include an image of Rodin's The Thinker, with a quote from Hamlet about the nature of human reason.

The Origins of Our Mistakes

Possible explanations for human errors: flawed environment or badly-designed minds.

The Great Minds Who Studied the Limits of Human Reason

Mentions Dan Kahneman, Amos Tversky, and Herbert Simon, highlighting their work on limitations of human reason.

Human Bias in Problem Solving (Section III)

About eighty percent of the time, people end up solving the wrong problems.
This part of the presentation discusses various cognitive biases, such as availability and representation biases leading to a narrow framing during problem-solving.
Overconfidence bias and confirmation bias in human decision making are mentioned.

The (Less) Phenomenal Power of Human Mind

Humans tend to be overconfident in their abilities.
People tend to favor evidence that confirms their initial view, while ignoring evidence that contradicts it (confirmation bias).

COVID-19

The presentation uses the response of various governments in the first few months of the COVID-19 pandemic to demonstrate the tendency of governments to get things wrong.

Climate Change

The presentation connects climate change to an engineering problem that needs to be solved.

How to Avoid Pitfalls of AI

Methods for mitigating the negative consequences of employing AI in problems

How to Mitigate Bias

Make decision-makers more aware of unconscious biases through education and tools and rules.
Modifying the environment to create situations where bias is either irrelevant or even helpful for the decision-making process.

AI Can Help You Ask Better Questions

AI can increase question velocity, variety, and novelty, focusing on "catalytic" questions to spark change.

Ask the AI to Be Someone Else

Use a new chat to avoid bias.
Describe the situation without mentioning a proposed solution.
Consider prompts from different perspectives or the personalities of different characters.

AI as a Creative Engine

AI can combine concepts in unexpected ways to generate new ideas.
AI acts as a connector between seemingly disparate concepts.

Ask the AI to Assist with Data Collection, and Data Cleansing

How to use AI to assist in data collection.
Techniques to use AI to clean data for analysis.
Data in the example involves superhero powers/attributes.

Perils of Using AI for Problem Solving

LLMs (Large Language Models) are still mysterious.
LLMs can potentially be misleading, generate inaccurate information, give nonspecific/noncontextual advice, and produce biased results if the input or the framing of the question is biased.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore how artificial intelligence can enhance problem-solving within business environments in this presentation by Ambra Mazzelli. With her extensive background in engineering and management, she discusses human cognitive processes and biases that impact decision-making. Gain insights into the role of AI in modern business strategies.