A study co-led by Cornell researcher Martin Wiernsperger found that managers who receive performance-based pay are more likely to rely on AI advice when making decisions. This contradicts previous research from the 1980s and 1990s, which suggested that incentivized decision-makers would rely less on algorithmic advice due to "algorithm aversion".
The study involved around 1,500 participants who were tasked with estimating Airbnb apartment prices with or without AI advice. The results showed that managers with performance-based pay rely more heavily on AI advice compared to those with fixed pay. Additionally, describing AI as combining data and human expert knowledge increases trust and reliance on AI advice.
The study's findings have implications for companies introducing AI into decision-making processes. It highlights the importance of motivation and communication in driving the adoption of AI tools. By linking pay to performance and framing AI advice effectively, organizations can encourage greater reliance on AI and improve decision-making outcomes.
The use of AI assistance leads to better decision-making outcomes, and companies can benefit from understanding how to motivate employees to use AI tools effectively. By doing so, organizations can harness the full potential of AI and drive business success.
