Episode 2300: Sandra Matz makes the Case for a Data-Driven Science of Predicting and Changing Human Behavior
Jan 11, 2025
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Sandra Matz, a computational social scientist and professor at Columbia Business School, advocates for using data science to predict and influence human behavior. She delves into the impact of AI on consumer choices and the ethical challenges of psychological targeting. Matz discusses the importance of data privacy, especially in personality tests and mental health applications, highlighting the need for regulation in the fast-evolving tech landscape. Her insights urge us to consider both the potential and risks of AI in shaping our lives.
The reliance on technology risks undermining personal agency, as external digital forces increasingly shape our decision-making and identities.
Psychological targeting in marketing, while enhancing personalization, raises ethical concerns regarding consumer autonomy and the potential manipulation of choices.
Deep dives
The Outsourcing of Humanity to Technology
The conversation emphasizes the growing concern over how technology is increasingly taking over aspects of our humanity. Nicholas Carr's early criticisms highlight that as we become more reliant on technology, we risk outsourcing our core human traits, leaving us treated as mere data points. This shift poses a significant threat to our ability to maintain self-determination and personal agency, as many decisions are influenced by external digital forces. By framing this issue, the discussion sets the stage for a broader examination of how technology can both enhance and undermine our individual identities.
Psychological Targeting and Its Implications
The concept of psychological targeting is explored in relation to how businesses leverage data to influence consumer behavior. Algorithms analyze extensive amounts of data to infer personal traits, which then inform marketing strategies to cater to individual psychological profiles. This targeting, while potentially beneficial for personalized user experiences, raises ethical concerns about the loss of autonomy and the manipulation of consumer choices. The dialogue illustrates the delicate balance between leveraging data for positive outcomes and the risk of exploiting those insights for profit-driven motives.
Innovative Solutions for Data Governance
Proposed solutions to the challenges posed by data technology include innovative models of data governance, such as federated learning and data cooperatives. Federated learning empowers users by enabling the analysis of their data locally on their devices without sending it to central servers, enhancing privacy and security. Data cooperatives allow individuals to collectively share their data while maintaining ownership and decision-making power over its use. These alternative frameworks challenge traditional profit-driven models and aim to prioritize consumer welfare and autonomy in the digital landscape.
The Role of Regulation in Addressing Technological Risks
The discussion also emphasizes the necessity for regulatory measures to ensure ethical use of technology and data. Effective regulation should focus not just on the technology itself but on protecting vulnerable populations and limiting misuse in sensitive contexts, such as elections. Moreover, the approach of regulating specific applications rather than the technology provides a pathway to mitigate risks while allowing for innovation. Ultimately, fostering a framework that balances technological advancement with robust protections for individual rights and privacy is deemed crucial for the future.
Is there really a data-driven science that enables us to predict and change human behavior?Mind Mastersauthor andColumbia Business School professor Sandra Matz certainly is a believer.But I wonder whether Matz’s observations about psychological targeting and data analysis through large language models represent anything fundamentally new or original. I’m also not convinced of her glib take on mental health applications. In contrast with Matz, I fear that AI-driven mental health monitoring could exacerbate rather than solve existing cultural problems. My advice: don’t trust people who call themselves “data scientists”. The data lies as much as humans. It’s how we use and abuse it that matters.
Sandra Matz is the David W. Zalaznick Associate Professor of Business at Columbia Business School in New York. As a computational social scientist, she studies human behavior and preferences using a combination of Big Data analytics and traditional experimental methods. Her research aims to understand how psychological characteristics influence real-life outcomes in a number of business-related domains (e.g. financial well-being, consumer satisfaction or team performance), with the goal of helping businesses and individuals to make better decisions. She was named as one of the Poets & Quants 40 under 40 Business School Professors in 2021.
Named as one of the "100 most connected men" by GQ magazine, Andrew Keen is amongst the world's best known broadcasters and commentators. In addition to presenting KEEN ON, he is the host of the long-running How To Fix Democracy show. He is also the author of four prescient books about digital technology: CULT OF THE AMATEUR, DIGITAL VERTIGO, THE INTERNET IS NOT THE ANSWER and HOW TO FIX THE FUTURE. Andrew lives in San Francisco, is married to Cassandra Knight, Google's VP of Litigation & Discovery, and has two grown children.
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