Why Human Judgment is Essential in an AI-Powered Era

In recent years, artificial intelligence (AI) has made incredible strides and proven to be a game-changer across many industries. From healthcare to finance, marketing to entertainment, AI tools are enabling faster, more efficient processes, and opening new possibilities for how we work and live. But despite its vast potential, AI is far from perfect. I recently experienced this firsthand while trying to use ChatGPT for something that may seem simple at first glance-investment calculations for one of the top stock market indexes.

The purpose of my inquiry was far from trivial. I was exploring long-term investment strategies with different return rates, aiming to understand how consistent monthly contributions and varying growth rates could impact my future portfolio. This exercise was not just for curiosity’s sake; it was for financial planning, something that can significantly affect people’s savings and future security.?

The Setup: A Simple Request for Investment Scenarios

I entered what I thought were straightforward parameters into the AI model. I asked ChatGPT to calculate different investment outcomes for an initial amount of money, followed by monthly contributions over 15, 20, 25, and 30 years, considering various annual return rates ranging from positive to negative. I trusted that this tool, capable of answering complex questions and providing insights, would generate accurate calculations based on well-established financial principles.

Sounds simple enough, right?

The Reality: Miscalculations and Inconsistent Results

As I began reviewing the results, I quickly realized that something wasn’t right. Despite the AI’s sophisticated abilities, the numbers didn’t add up. The profit values were inconsistent, and some of the returns were drastically off the expected results, even for standard rates like 6% or 7%. I found myself looking at figures that didn’t align with the basic principles of compound interest. It was like having a trusted tool provide advice on a critical decision, only to find that the advice was flawed and unreliable.

Understanding the Risks of Miscalculations

In finance, the smallest miscalculation can snowball into much larger issues. This experience made me pause and reflect. In this case, the mistakes in the investment scenarios weren’t just technical glitches—they had real potential to misguide me or anyone else relying on them for making serious financial decisions. The future of one’s savings depends on these calculations, especially when it comes to long-term growth like retirement funds or investing in major indexes.

As I studied the deliverables further, it became clear that these miscalculations could significantly affect my decision-making process if I had relied on them without further scrutiny. This was a key lesson: Human oversight is still essential, even when using tools that are supposed to help us make better decisions.

The Irony: Asking ChatGPT to Write the Post

And here's where the irony kicked in: After discovering the mistakes, I thought, why not have ChatGPT write a LinkedIn post for me to share this story? After all, this tool had just guided me through a significant learning experience—and who better than ChatGPT to craft the perfect message? I decided to add a touch of humor and irony, turning a frustrating situation into a valuable lesson. Whoever is interested in reading ChatGPT’s?post can send me a message.

A Key Takeaway: Critical Thinking and Double-Checking are Crucial

While this situation might sound somewhat amusing, it underscores a very important point: Human judgment, critical thinking, and double-checking are crucial, especially when it comes to important decisions. AI has made great strides in assisting us with tasks that were once difficult or time-consuming, but it can still make mistakes.

The experience with ChatGPT reinforced that while AI can be incredibly helpful for things like automation, data analysis, and even making predictions, we can’t rely on it completely-especially in fields where precision is paramount. The power of human thinking, validation, and oversight cannot be replaced. If we ignore our ability to critically evaluate and verify AI’s results, we risk making costly mistakes, especially in areas like personal finance, healthcare, or even legal matters.

AI’s Potential: A Tool, Not a Replacement

I’m a fan of AI. I truly believe that it will revolutionize countless industries, making processes more efficient, enabling faster decision-making, and unlocking opportunities that were once out of reach. But, as this experience taught me, AI has to be just a tool, not a replacement for human intelligence and judgment. AI can suggest, calculate, and automate, but it is up to us to critically assess and make the final decisions.

The Bottom Line: Verification is Key

This article serves as a reminder to never underestimate the power of human judgment. While AI will undoubtedly play an increasingly prominent role in our lives, we must remain vigilant and continue to verify the results it generates. Whether it’s AI in investment planning, healthcare diagnostics, or legal processes, the human ability to question, assess, and validate will remain indispensable.

We must continue to leverage AI to its fullest potential, but always with the understanding that human oversight is necessary. It’s not about replacing human intelligence—it’s about working with AI to enhance our capabilities and make better, more informed decisions.

In our pursuit of automation and convenience, let’s not forget the importance of critical thinking, verification, and, ultimately, trusting our own judgment.