When Mike Rhodes presented at DMDU Connect 2020 Artificial Intelligence – Less Artificial More Intelligence (How to play nice with machines in 2020), he covered the importance the key in getting the right mix. This is the ACTION.
This is stuff happening in real time. You can set up an alert. Making bid changes. Google have been touting for years. Technology is behind in real time, 70 million signals finding where they are, what type of service they are using, what apps they use, how old or how new. They use all that information to determine how likely you are to click on a particular ad and once you have clicked on that, how likely you are to convert, to become a lead, to buy a product. That’s why Google is trying to decide and that all happens in real time. There is so much data, we as humans would not be able to use it. That is stuff good for the machines to do.
The other end is what is good for humans to do, the stuff that doesn’t happen as often. Thinking about the strategy of our business. With the Covid pandemic, automation in the stock market, Facebook and Google went a little haywire because the machine works on data and the assumption that all the historical data will predict the future. Those predictions couldn’t be met and humans were needed to jump in and fix things.
Setting goals is something of a human endeavour. Thinking how your industry is going to change in the fact of AI and how some jobs may be made redundant over the coming year.
How can we automate some of this action?
Turn it into a thinking checklist and not a do list, SOP. Make a checklists full of questions not statements.
Think about human automation
The human does the decision making, the machine does the action.
The rules you run your business on. There are a bunch of tasks that we do everyday that we can turn into rules.
A google example.
Auto Rules – start with easy. You may have a promotion that is set to run at 1.00am. Computers are good at this. We say to the machine to turn on new ad, at a certain date and time an then turn off older ads. Set guardrails around your machine. Get Auto Rules to do it for you.
Google Ad Scripts.
More Advanced Version
Script rules – We are just using more complex rules and they can run hourly. We are automating so we have more time for creativity.
One of the best books of 2018 was written by Ray Dalio – Principles – The first half of the book is brilliant, the second half, not so much.
Ray sets out how they codified their trading processes. They built a whole bunch of rules. They would run it through the machines to see what algorithms it comes up with. At the same time his human team would make the same decision, what are we going to do with this thing. They would then compare the humans with the machine and if there was a difference, they would decide if they needed to update the rules because they hadn’t put in enough rules. More often it was the humans not following their own rules.
Humans allowed tiredness or emotion to get in the way of their system and they were about to make the wrong trade and the machine would say this is what we should do. Sometimes humans would win, they would take into account like when Covid hit or new information that isn’t yet built into the rules. He’s been doing for 40 years what the codified position should be with the human decision. That is why he has the 5th largest hedge fund in the world.
How can you take that idea and implement that in your business? Automate the data into information first, then automate the action part, then go to work on your decision making process. The reason we do that is to free up time. The resource we can’t get back.
Blog Post created from Mike Rhodes’ DMDU Connect LIVE 2020 Presentation.
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