Algorithms for good: When nudges meet AI
Algorithms don’t have the best reputation but they shouldn’t be the enemy – at least, not when algorithmic nudging is done ethically.
Mareike Möhlmann recently shared some recommendations for companies to ethically use algorithmic nudging in the Harvard Business Review.
Nudging can provide positive reinforcement to individuals (Sunstein & Thaler, 2014), and ultimately encourage a particular decision or action. Algorithmic nudging utilises AI through texts, gamification and push notifications to influence behaviour.
We resonated with her point to “create a win-win situation” and have some ideas about how this could look in practice.
A win-win situation should benefit both
‘the nudger’ and ‘the nudged’
What comes to mind is the potential for:
Insurance companies to implement gamification within dynamic underwriting apps to encourage healthy behaviours – the individual stays healthy which is also good news for the insurer
Clinicians to build in rewards for patients who adhere to treatment (perhaps a financial incentive?)
Do you have anything to add?
Möhlmann, M. (2021, April 22). Algorithmic nudges don’t have to be unethical. Harvard Business Review. https://hbr.org/2021/04/algorithmic-nudges-dont-have-to-be-unethical
Sunstein, C. R., & Thaler, R. H. (2014). Nudge: Improving decisions about health, wealth, and happiness. New Haven: Yale University Press.