Strategic AI Decisions: Why Leaders Need Bias Awareness

July 19, 2024
Dana Vetan

Let's face it, 2025 is around the corner, and by then, AI won't be a "cool new thing" anymore – it'll be essential for every company. Time to dust off those strategic thinking caps and ditch the "plug-and-play" AI solutions.

But here's the catch: simply hooking up a random chatbot to your website or using generic AI writing tools won't cut it anymore. As AI matures, so should our approach. It's time to move beyond the honeymoon phase and get strategic.

The easy route is to grab some pre-built AI tools and streamline your processes. But the real magic happens when you use AI to unlock innovative features, capabilities, and even entirely new business models.

This is where leadership plays a crucial role. As you navigate these strategic AI decisions, be aware of the silent saboteurs lurking beneath the surface: unconscious biases. These hidden prejudices can significantly hinder your ability to leverage AI effectively.

Here's how these biases can trip you up:

1. The Blind Spot Bias

‍This bias refers to the tendency to recognize biases in others while failing to see them in ourselves. This can hinder effective AI implementation, leading to skewed results and missed opportunities. Think of it like putting on rose-colored glasses – everything looks great, but it's not the whole picture.

2. The Automation Bias

‍This bias is the tendency to favor automated decisions over human ones, often without critical evaluation. Blindly trusting automation can sideline ethical considerations and overlook situations where human judgment is essential. AI should augment, not replace, human expertise.

3. The Algorithmic Aura

‍This bias involves an unwarranted trust in the outputs of complex algorithms. People may accept AI outputs without scrutiny, risking the perpetuation of biases or overlooking errors. But AI isn't perfect – critically evaluate its results before making decisions.

An insightful example comes from a Harvard and BCG study, which highlights the double-edged sword of AI in the workplace. The study revealed that even experienced BCG consultants often trusted AI recommendations without questioning their accuracy, leading to potential errors and oversight. In some cases, the AI convinced them of things that were not true, demonstrating how biases can lead to uncritical acceptance of AI outputs and perpetuate flawed decision-making.

A recent BCG report further emphasizes this, noting that while around 90% of participants improved their performance when using generative AI for creative ideation, many trusted AI too much for business problem-solving, resulting in 23% worse performance compared to those who didn’t use AI at all. This underscores the need for balanced and critical evaluation of AI tools.

4. The Anchoring Bias

‍We give too much weight to the first piece of information we hear. Don't let initial impressions (like "AI is expensive" or "a job-stealer") cloud your judgment about AI's potential benefits.

‍

The good news? By acknowledging these silent saboteurs, we can take control.

One of our key strategies is the AI Opportunity Mapping Workshop, which helps you:

  • Build diverse teams of decision-makers to incorporate various perspectives.
  • Foster open communication to challenge assumptions.
  • Engage with external experts (and AI experts) for new insights.
  • Challenge your thinking with strategic questions, such as:
    • "Who might benefit from this solution, and who might be left behind?"
    • "How can we ensure that human oversight remains for critical tasks?"
    • "Are we solving a real problem?"
    • "What proof do we have this problem exists?"
    • "What perspectives are we overlooking?"

By considering these questions proactively, you ensure that your AI strategy is both effective and well-rounded.

‍