AI Spiral into Mediocrity

Unquestionably at the vanguard of technical breakthroughs, artificial intelligence (AI) has an impact on a wide range of fields, including business and supply chain. Artificial Intelligence, commonly linked to rule-based algorithms and machine learning, is revolutionizing the way we forecast, plan, and handle and use data. Notwithstanding the warm reception for AI's effectiveness, a pressing apprehension remains: the possible incubation ground for mediocrity.

Businesses like Coca-Cola, Starbucks, Volvo Mobility, and Unilever have demonstrated the various ways AI is being used in their operations in recent years. AI has demonstrated its capacity to increase productivity and provide insightful data in a variety of contexts, including car sharing optimization, seasonal pattern prediction, and product innovation. Even while these instances show how beneficial AI might be, it is important to be aware of the possible risks associated with relying too heavily on AI and automated systems.

Although artificial intelligence (AI) is praised for its efficiency and automation potential, there is growing worry that relying too much on the average responses produced by AI could result in a concerning phenomenon known as the ‘breeding of mediocrity’. A worrying trend has been identified by practitioners and academics – the apparent decline in the performance of commonly used generative AI models. Furthermore, research has demonstrated a decrease in originality because of reliance on AI and worries about generic solutions. This should worry all of us, and challenge our understanding of the long-term viability of generative AI and compel us to investigate the possible ramifications of ongoing self-generated results without health skepticism.

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AI is Mean:

The cautionary tale begins with the observation that when individuals and organizations resort to AI for rapid and standardized solutions, they risk succumbing to widespread mediocrity. While average AI solutions are typically practical and trustworthy, they may lack the nuance, originality, and innovative thinking that is inherent in human decision-making. This reliance on AI-generated average solutions has the potential to produce a self-perpetuating loop in which a more prominent average becomes the norm, influencing how humans’ approach problem-solving and decision-making.

Take the example of using AI to help define and design your S&OP process. If you look at most of the material and apps out there, it would copy a basic process that helps keep supply and demand in balance.? Technically, it would work, but it would only have very little of an effect.? From what we've seen, the only companies that are next level and above are the ones that question the norms, go beyond the old average definition, and build a business process that aligns multiple functions around a common goal.

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We can never expect exceptional above average results if all we know or do is the norm.

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This is echoed by studies and specialists in the field. A Harvard Business Review article[i] highlights the need for prudence, stating that as more users accept average AI replies, a convergence to a mean is unavoidable. According to the report, the attractiveness of AI resides in its capacity to deliver rapid and simple responses based on current data patterns. This efficiency, however, can lead to a limiting of perspectives and a reliance on the status quo, suffocating creativity and innovation.

When jobs are automated and answers are easy to find, people are less likely to try new things or come up with new ideas. Getting quick answers can make people less likely to question the status quo, which can kill innovation. There is a risk of making a society of mediocrity where curiosity and new ideas are not valued.

AI could turn into a set of rules that make it harder to understand and come up with new ideas. AI is great at giving information based on past data and trends that are already known, but it might not be so good at coming up with completely new ideas. It cannot have engaging conversations, look at things from different points of view, or think about new information that has not been fed into its model yet.

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Dumbing Down of AI:

We have heard, though, that AI gets smarter over time and as we give it more cases.? Based on this reasoning, our S&OP processes should get better over time, and the models we use should be better than the average from the past.? Part of the problem is that we give it more below-average results than above-average results, which makes it dumber and raises the mean of the results it has already seen.

A separate study undertaken by Stanford and Berkeley researchers[ii] revealed a troubling trend: an apparent drop in the effectiveness of commonly used generative AI models. Researchers detected a substantial shift in the behavior of OpenAI's GPT large language model (LLM) in just a few months. Users noted a noticeable drop in response accuracy, raising worries about the model's usefulness. It became so evident and a possible issue that OpenAI's vice president of product, Peter Welinder, endeavored to allay concerns and assure individuals that no intentional alterations to the model had occurred. However, the study's findings indicate to a tendency known as "dumbing down" of generative AI.

Mehr-un-Nisa Kitchlew, an AI researcher, said that AI models are not perfect, even when they are taught on human data that has not been changed. The flaws in the data that the models are trained on are built into them. There is a chance that the models will make mistakes and biases worse if they keep learning from the content, they make themselves. This could make them less smart overall. There is evidence that AI models are getting "dumber" over time. This could be because mistakes and biases are getting worse.

Think of this now in context of business forecasting. While we envision accuracy improving over time, without interactions and relevant outside influences it will get lazier and may get less accurate. We saw this play out with ChatGPT-4 accuracy of doing something as simple as identifying prime numbers deteriorate significantly in just five months.?

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Putting the Chat GPT Before the Horse:

Realizing that AI has its limits is not a reason to abandon all AI projects, but to be careful. AI is a strong tool that can help people do more when used in a smart way. The important thing is to see AI as a tool, not as a substitute. The story of how AI was used to do research and write an article shows how useful it can be when used as a tool with human direction.

AI is very good at handling data, analyzing it, and coming up with new ideas. However, it is important to know that AI cannot replace humans' natural ability to be creative, curious, and think critically. When human intelligence and AI work together, they can produce results that are unmatched. For example, when someone wrote an article, AI helped with research but needed human input for creativity and message.

As more jobs are done by machines, skills like being able to ask the right questions, think of new ideas, and communicate clearly become more valuable. Adaptability and the ability to read, question, and improve AI results will be key to success in a job market that is always changing.

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Conclusion:

While AI has a lot of great potential for efficiency and automation, accepting AI's average answers without question runs the risk of making people less good. People and businesses can get the most out of AI without falling into the traps of an average-centered mindset if they know what it can't do, interact with its results, and encourage a culture of innovation and critical thought. As we work to incorporate AI into our everyday lives, it is important to find a balance that protects and builds on human creativity, rather than letting a standard AI-generated norm overshadow it.?

When AI is seen as a tool instead of a replacement, it can give people the power to innovate at levels that have never been seen before. In this age of rapid technological progress, the key is to use AI to improve human abilities while still preserving important skills and embracing the value put on creativity, curiosity, and good storytelling. We can make sure that AI is a force for growth instead of a sign of mediocrity this way.

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[i] Harvard Business Review, Ethan Mollick, David De Cremer, Tsedal Neeley, Prabhakant Sinha. (December 7, 2023). "Generative AI: The Insights You Need." Harvard Business Review

[ii] Chen, L., Zaharia, M., & Zou, J. (October 31, 2023). "How Is ChatGPT’s Behavior Changing over Time?" Stanford University & UC Berkeley. arXiv:2307.09009v3 [cs.CL]. Retrieved from https://arxiv.org/abs/2307.09009v3