Why combining humans and AI can sometimes make businesses less efficient
In short: Companies are rushing to integrate artificial intelligence to streamline decisions, but a surprising paradox exists. While AI can act as a powerful 'cybernetic teammate,' research suggests that simply mixing humans and machines can actually result in worse performance than using either alone.
A recent study published in Nature Human Behaviour analyzed 106 experiments conducted between January 2020 and July 2023. According to MIT Center for Collective Intelligence studies, human-AI pairings typically failed to exceed the performance of top standalone human or AI systems. In some cases, the combination was statistically significantly worse. For instance, in a task detecting fake hotel reviews, AI alone achieved 73% accuracy, while the human-AI combination dropped to 69%, and humans alone managed only 55%. This research involved reviewing more than 100 distinct studies. The findings were presented by researchers from the MIT Center for Collective Intelligence.
Researchers hypothesize that these failures occur when humans struggle to decide when to trust an algorithm versus their own judgment. To avoid this, experts like Sylvain Duranton advocate for a 'Human plus AI' approach, where AI is used alongside humans rather than as a replacement. The most effective collaborations occur when each party performs the specific tasks they are naturally better at than the other. This occurs because people often lack accuracy when determining when to rely on algorithms. Success depends on identifying tasks where each entity excels independently.
However, the potential for breakthrough success is real. In a field experiment conducted between May and July 2024 at Procter & Gamble, researchers found that generative AI could serve as a high-performing collaborator. While individuals using AI were more likely to produce ideas in the top 10% of submissions, the study suggests that for peak performance, a full human team supplemented by AI is the most effective recipe for success. The Harvard Business School study examined 791 professionals working within the Procter & Gamble company. These participants were assigned to various product development units including oral care and grooming.
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Sources
- Summary by Intellect · source: Sylvain Duranton: How humans and AI can work together to create better businesses
- Also: When humans and AI work best together — and when each is better alone | MIT Sloan
- Also: When AI Joins the Team, Better Ideas Surface | Working Knowledge
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