EconTalk When Prediction Is Not Enough (with Teppo Felin)
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Apr 15, 2024 
Teppo Felin, a Professor of Strategy and Entrepreneurship at Utah State University and an associate scholar at Oxford, dives into the fascinating interplay between human cognition and AI. He argues that while AI suggests rational decision-making, it often overlooks the significant role of human belief and creativity. Felin uses the Wright brothers as a case study, illustrating how innovation stems from ignoring prevailing evidence. He emphasizes the importance of experience and cognitive flexibility in decision-making, highlighting that human intuition often outmatches data-driven models.
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Brain vs. Computer
- The human brain is not a computer, although it's a common analogy.
- Human thinking differs significantly from AI processing, especially regarding inputs and outputs.
Granddaughter's Lyrics
- Russ Roberts's granddaughter learning song lyrics illustrates early language acquisition.
- Initially, it resembles a stochastic process, like AI, but lacks creativity and deep understanding.
Bias as Feature
- Human biases, often seen as flaws in decision-making, can be advantageous.
- AI-driven rational decision-making may not be suitable for all situations where biases play a role.
