Platform Scale for a Post-Pandemic world by Sangeet Paul Choudry says
Platform manifesto - The Invisible Hand is the new Iron Fist
“In a networked age, we are moving from a world of command and control to a self-serve world where participation is encouraged through an invisible hand powered by data, API and algorithms.” - Chapter 1.4, page 45
Adam Smith’s concept of the Invisible Hand, outlined in his renowned work “The Wealth of Nations” in 1776, proposes that individuals pursuing their own self-interest inadvertently contribute to the greater good of society. In a free-market economy, Smith contended that rational self-interested individuals make choices that benefit not only themselves but also society as a whole. This unregulated interplay of supply and demand, steered by the Invisible Hand, fosters competition, innovation, and economic growth.
Now, you might be wondering how this connects to something as seemingly unrelated as Artificial Intelligence (AI) and Machine Learning (ML) algorithms. Well, it’s not as ominous as it might sound.
I once had the opportunity to work on a client project where every customer call was recorded and transformed into text. This wasn’t for any nefarious purposes; rather, the company’s aim was to enhance customer service by using past interactions to train their customer service representatives effectively.
This experience prompted me to consider the broader implications of using text from voice recordings to conduct ‘Sentiment Analysis’ and evaluate customer behavior. By scoring customer behavior, we can gather qualitative data on various fronts:
In the retail sector, we can categorize customers as loyal, valuable, or annoying.
In the credit card industry, we can assess whether a customer disputing charges is genuinely in the right or just trying to get off the hook.
In appointment-based businesses, tracking customer reliability can help manage the cost of no-shows. May be the business can do a no-show on the customer.
In the realm of job interviews, a bold idea emerges: instead of solely relying on human judgment, HR could employ AI algorithms to rate interviewee responses as thought-leaders, knowledgeable, or halucinating.
Traditionally, businesses have leaned on quantitative metrics to enhance their productivity and make informed decisions. Sentiment Analysis, however, offers a fresh approach. We’re venturing into a new world where we can evaluate people based on what they say, opening up a world of possibilities and challenges.
So, the next time you hear the familiar phrase, “This call is being recorded for training purposes,” consider who they’re training. It’s likely an AI algorithm that’s quietly profiling you. That exclusive TripleXtanium card you hold today could be stripped away based on your interactions by an AI algorithm. So, be kind and be nice.
Adam Smith’s concept of the Invisible Hand continues to promote competition, innovation, and economic growth. However, it can also act as an Iron Fist, driving improvements in productivity and bolstering bottom-line revenue.
Thats “The Invisible Hand is the new Iron Fist” in a nut shell.