Algorithms in decision making
AI, once the subject of human imagination and the stuff of science fiction novels, is increasingly becoming a reality across industries. Advances in computing power and the availability of vast amounts of data have led companies to invest heavily in the power of AI solutions. Unlike dystopian science fiction novels, however, the current use of AI is not about putting machines in control of the world. Rather, the high accuracy of AI and its underlying algorithms have the potential to optimize human decision-making and lead to significant economic benefits.
In this regard, the idea of optimizing decision-making processes of human decision-makers by automating decision-making processes is not new. Decades of research show that algorithms can make more accurate predictions than humans in many decision-making situations. However, recent significant investments in AI seem to be at odds with current adoption rates. Several studies have shown that people distrust algorithmic results in a variety of decision areas, a phenomenon that has been termed “algorithm aversion.” Experts, as well as laypeople, often do not want to rely on algorithms and prefer a human prediction to that of an algorithm.
This general distrust is costly and jeopardizes optimal decision outcomes. For this reason, the research area is devoted to factors that have an influence on the evaluation of algorithms. It also addresses questions of how fair algorithms can actually be and how we can sustainably ensure successful cooperation between humans and machines.
In cooperation with the Nuremberg Institute for Market Research e.V. (NIM e.V.) we investigate the influence of algorithms and recommender systems in (purchase) decision situations. The goal is to understand how decisions can be influenced by algorithms and how systems need to be designed to support individuals in decision making.
Projects & Talks
Artificial intelligence (AI) favors the optimization of HR processes and changes human resource management. This raises new questions for companies regarding the design of AI-based work systems and technology acceptance. The aim of the project is to analyze the potential of AI in HR and to investigate which measures ensure successful human-technology interaction. In particular, the project deals with AI-based recommendations in HR and their consequences. The focus is on the question of how the acceptance of AI-based recommendations can be sustainably increased.
In his lecture “Decisions under time pressure: Is AI the solution”, Prof. Laumer will discuss the success factors of artificial intelligence in decisions under time pressure. The lecture embeds scientific findings in the soccer context and shows how technologies, algorithms and artificial intelligence can support soccer referees in their decision-making during a soccer match. Referees have to make numerous decisions for 90 minutes under enormous stress conditions. Therefore, decisions made by referees are a good example of how AI can support decisions under time pressure. For example, at the 2022 World Cup, automated offside position detection was used for the first time to strengthen referees’ decision-making with additional information. In his lecture, Prof. Laumer thus combines his passion for soccer and digital technologies by showing how artificial intelligence influences our lives and in particular the way we make decisions.