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    Home»Development»Artificial Intelligence»How we really judge AI

    How we really judge AI

    June 10, 2025

    Suppose you were shown that an artificial intelligence tool offers accurate predictions about some stocks you own. How would you feel about using it? Now, suppose you are applying for a job at a company where the HR department uses an AI system to screen resumes. Would you be comfortable with that?

    A new study finds that people are neither entirely enthusiastic nor totally averse to AI. Rather than falling into camps of techno-optimists and Luddites, people are discerning about the practical upshot of using AI, case by case.

    “We propose that AI appreciation occurs when AI is perceived as being more capable than humans and personalization is perceived as being unnecessary in a given decision context,” says MIT Professor Jackson Lu, co-author of a newly published paper detailing the study’s results. “AI aversion occurs when either of these conditions is not met, and AI appreciation occurs only when both conditions are satisfied.”

    The paper, “AI Aversion or Appreciation? A Capability–Personalization Framework and a Meta-Analytic Review,” appears in Psychological Bulletin. The paper has eight co-authors, including Lu, who is the Career Development Associate Professor of Work and Organization Studies at the MIT Sloan School of Management.

    New framework adds insight

    People’s reactions to AI have long been subject to extensive debate, often producing seemingly disparate findings. An influential 2015 paper on “algorithm aversion” found that people are less forgiving of AI-generated errors than of human errors, whereas a widely noted 2019 paper on “algorithm appreciation” found that people preferred advice from AI, compared to advice from humans.

    To reconcile these mixed findings, Lu and his co-authors conducted a meta-analysis of 163 prior studies that compared people’s preferences for AI versus humans. The researchers tested whether the data supported their proposed “Capability–Personalization Framework” — the idea that in a given context, both the perceived capability of AI and the perceived necessity for personalization shape our preferences for either AI or humans.

    Across the 163 studies, the research team analyzed over 82,000 reactions to 93 distinct “decision contexts” — for instance, whether or not participants would feel comfortable with AI being used in cancer diagnoses. The analysis confirmed that the Capability–Personalization Framework indeed helps account for people’s preferences.

    “The meta-analysis supported our theoretical framework,” Lu says. “Both dimensions are important: Individuals evaluate whether or not AI is more capable than people at a given task, and whether the task calls for personalization. People will prefer AI only if they think the AI is more capable than humans and the task is nonpersonal.”

    He adds: “The key idea here is that high perceived capability alone does not guarantee AI appreciation. Personalization matters too.”

    For example, people tend to favor AI when it comes to detecting fraud or sorting large datasets — areas where AI’s abilities exceed those of humans in speed and scale, and personalization is not required. But they are more resistant to AI in contexts like therapy, job interviews, or medical diagnoses, where they feel a human is better able to recognize their unique circumstances.

    “People have a fundamental desire to see themselves as unique and distinct from other people,” Lu says. “AI is often viewed as impersonal and operating in a rote manner. Even if the AI is trained on a wealth of data, people feel AI can’t grasp their personal situations. They want a human recruiter, a human doctor who can see them as distinct from other people.”

    Context also matters: From tangibility to unemployment

    The study also uncovered other factors that influence individuals’ preferences for AI. For instance, AI appreciation is more pronounced for tangible robots than for intangible algorithms.

    Economic context also matters. In countries with lower unemployment, AI appreciation is more pronounced.

    “It makes intuitive sense,” Lu says. “If you worry about being replaced by AI, you’re less likely to embrace it.”  

    Lu is continuing to examine people’s complex and evolving attitudes toward AI. While he does not view the current meta-analysis as the last word on the matter, he hopes the Capability–Personalization Framework offers a valuable lens for understanding how people evaluate AI across different contexts.

    “We’re not claiming perceived capability and personalization are the only two dimensions that matter, but according to our meta-analysis, these two dimensions capture much of what shapes people’s preferences for AI versus humans across a wide range of studies,” Lu concludes.

    In addition to Lu, the paper’s co-authors are Xin Qin, Chen Chen, Hansen Zhou, Xiaowei Dong, and Limei Cao of Sun Yat-sen University; Xiang Zhou of Shenzhen University; and Dongyuan Wu of Fudan University.

    The research was supported, in part, by grants to Qin and Wu from the National Natural Science Foundation of China. 

    Source: Read More 

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    The Secret Playbook: Leadership Lessons From Indian-Origin CEOs

    April 21, 2025

    Indian-origin CEOs have become iconic figures in the global corporate world, steering some of the largest companies to unprecedented success. From Satya Nadella at Microsoft to Indra Nooyi at PepsiCo, their journeys are rich with insights that blend cultural heritage with innovative leadership.
    Indian CEO Success Stories: What Sets Them Apart?

    Focus on Education and Lifelong Learning:

    Many Indian CEOs emphasize the importance of a solid educational foundation. For instance, Sundar Pichai credits his success to his rigorous engineering background and later business education at Stanford and Wharton.

    A notable example is the “Google for India” initiative, driven by Pichai’s understanding of local challenges, showcasing how education and cultural awareness intertwine.

    “Education is the most powerful weapon you can use to change the world,” resonates deeply within their ethos.

    Cultural Adaptability:

    Growing up in diverse environments, Indian-origin leaders develop the ability to adapt to new cultures and challenges. This adaptability has been instrumental in building global teams.

    For example, Indra Nooyi’s ability to navigate cultural differences was key in expanding PepsiCo’s presence globally.

    A “Growth Mindset”:

    Satya Nadella often speaks about the power of a growth mindset, stating, “Success can cause people to unlearn the habits that made them successful in the first place.”

    When Nadella took over as CEO, he revamped Microsoft’s culture to embrace cloud computing, transforming the company into one of the leaders in the tech industry.

    Empathy-Driven Leadership:

    Indra Nooyi’s leadership at PepsiCo was marked by her deep empathy for employees and stakeholders. Her motto, “Performance with Purpose,” highlights balancing business goals with societal impact.

    One notable initiative was her decision to introduce healthier snack options, aligning corporate objectives with public health.

    Key Leadership Lessons From Indian-Origin CEOs
    1. Visionary Thinking

    Case Study: Sundar Pichai

    As the CEO of Google and Alphabet, Pichai’s ability to envision the future of AI and sustainability drives innovation. His advice to aspiring leaders: “Take risks and don’t be afraid to fail.”

    Under his leadership, Google launched AI-focused solutions like Google Assistant and TensorFlow, setting industry benchmarks.

    2. Building Inclusive Teams

    Case Study: Arvind Krishna (IBM)

    Krishna’s focus on diversity has been pivotal at IBM. He often says, “Innovation requires diverse perspectives and inclusive leadership.”

    IBM’s groundbreaking AI technologies, like Watson, thrive due to inclusive and diverse team efforts.

    3. Humility and Hard Work

    Case Study: Shantanu Narayen (Adobe)

    Known for his humility, Narayen’s journey from Hyderabad to leading Adobe exemplifies persistence. His lesson: “Stay grounded and focused on solving real-world problems.”

    He spearheaded Adobe’s transition from packaged software to cloud-based solutions, significantly boosting revenue streams.

    4. Customer-Centric Approach

    Case Study: Ajay Banga (Mastercard)

    Banga’s strategy at Mastercard centered on customer satisfaction, leveraging technology to enhance user experiences. He advises: “Never lose sight of the customer’s voice.”

    His initiatives to promote financial inclusion globally have made Mastercard a leader in digital payments.

    How These Lessons Apply to Emerging Leaders

    Foster Resilience: Learn from setbacks and use them as stepping stones. For example, embracing constructive feedback can turn a potential weakness into a strength.

    Prioritize People: Build strong relationships with your team and stakeholders. Leaders like Indra Nooyi have demonstrated that understanding team dynamics enhances productivity.

    Think Globally: Embrace diverse perspectives to drive innovation. Sundar Pichai’s global vision has been instrumental in Google’s success.

    Invest in Growth: Dedicate time to self-improvement and professional development. Whether through formal education or self-taught skills, continuous growth is essential.

    The “Indian CEO Success Stories” Checklist

    Develop a Growth Mindset

    Read extensively and engage in lifelong learning.

    Embrace challenges and adapt to changing environments.

    Example: Nadella’s embrace of cloud technology transformed Microsoft.

    Cultivate Empathy

    Prioritize team well-being and societal impact.

    Actively listen to employees and customers.

    Example: Nooyi’s introduction of healthier snack lines at PepsiCo.

    Be Visionary

    Identify emerging trends and prepare for future challenges.

    Create a long-term strategy that aligns with core values.

    Example: Pichai’s AI-driven initiatives at Google.

    Stay Grounded

    Focus on solving tangible problems.

    Practice humility regardless of success.

    Example: Narayen’s successful cloud transition strategy at Adobe.

    Conclusion
    The success stories of Indian-origin CEOs are more than inspirational narratives; they are playbooks for leadership in a globalized world. By adopting their principles of resilience, empathy, and visionary thinking, aspiring leaders can carve their paths to success.
    For a comprehensive guide, download our free checklist and embark on your journey to emulate the strategies of these global trailblazers.

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