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AI-Assisted D ecision-making

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Summary

This article discusses the potential of AI-assisted decision-making using ChatGPT. It uses the example of Federal Express not being able to deliver packages on time, and how they solved the problem by changing the incentives of the night shift workers. It then goes on to explain how to use ChatGPT to help make better decisions, using the the scene from the movie The Big Short as an example. Finally, the article explains how to incorporate ChatGPT into everyday life, such as by setting up Custom Instructions to remind the user of important mental models or heuristics.

Q&As

What is the power of Glean?
The power of Glean is to have Google and ChatGPT, equipped and optimized for your workplace, at your fingertips.

What is the story that exemplifies one of Charlie Munger's most famous adages?
The story that exemplifies one of Charlie Munger's most famous adages is Federal Express not being able to deliver packages on time until they stopped paying by the hour.

What challenges do people face when trying to apply mental models and heuristics to their decisions?
The challenges people face when trying to apply mental models and heuristics to their decisions are that they can't remember to apply them and they often end up being abandoned.

How can ChatGPT help the characters in the movie The Big Short make better decisions?
ChatGPT can help the characters in the movie The Big Short make better decisions by breaking down the psychology of the players in the situation and analyzing the situation using Munger's list of mental models.

What steps can people take to incorporate heuristics and mental models into their lives?
Steps people can take to incorporate heuristics and mental models into their lives include using ChatGPT to break down decisions big and small, using heuristics and mental models to deepen the analysis, and saving things that work in Custom Instructions.

AI Comments

👍 This article does a great job of breaking down how to use ChatGPT to make better decisions and how to apply AI-assisted decision-making in real life.

👎 This article is too long and jumps around too much, making it difficult to follow and understand.

AI Discussion

Me: It's about using AI-assisted decision-making, specifically ChatGPT, to help us make better decisions. It uses the example of The Big Short to show how ChatGPT can be used in decision-making.

Friend: Interesting. What implications does this have for us?

Me: Well, the article suggests that using ChatGPT can help us break down complex decisions into more manageable chunks and make better decisions in the long run. It also provides a way to save mental models and heuristics so that we can easily refer back to them when making decisions. The article also mentions that ChatGPT can help us break down the psychological context of a decision, which can be very useful in business or interpersonal situations. Finally, the article mentions that ChatGPT can be used to help us identify our own biases and think more objectively in a given situation.

Action items

Make a list of mental models and heuristics that you find helpful and use them to analyze decisions you are facing.
Use ChatGPT to break down decisions big and small and ask it to help you break down the situation.
Create Custom Instructions in ChatGPT to remind you of helpful heuristics and mental models that you have identified.

Technical terms

AI-Assisted Decision-Making: A type of decision-making process that uses artificial intelligence (AI) to help make decisions.
ChatGPT: A natural language processing (NLP) system that uses a deep learning algorithm to generate human-like responses to questions.
Heuristics: A problem-solving approach that uses experience and intuition to make decisions.
Mental Models: A set of beliefs and assumptions about how the world works that are used to make decisions.
Incentives: Rewards or punishments used to motivate people to take certain actions.
Confirmation Bias: The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.
Theory of Mind: The ability to understand the thoughts, feelings, and beliefs of others.