How to use AI-enabled nudging to mutually benefit managers and employees
AI-enabled nudges can revolutionize business management
The convergence of AI technology and research in behavioral science research is set to revolutionize business management.
AI-enabled “nudges'' provide the flexibility to adjust feedback to an employee’s required areas of improvement and specific learning style.
What does this mean for managers? Well, AI-enabled nudges can analyze key performance indicators (KPIs) to provide predictive data analytics, provide daily reports on team performance, and collect other metrics that can be used to optimize efficiency in the workplace.
References
- Möhlmann, M (2021), “Algorithmic Nudges Don’t Have to Be Unethical,” Harvard Business Review, https://hbr.org/2021/04/algorithmic-nudges-dont-have-to-be-unethical
- Benartzi, S., Beshears, J., Milkman, K., (2012) “Should Governments Invest More in Nudging?” Psychological Science https://journals.sagepub.com/doi/full/10.1177/0956797617702501
- Clason, D. (2020) “Hearing Loss in the Workplace” Hearing Loss Association of America
- Ebert, P., Freibichler, W. (2017) “Nudge management: applying behavioral science to increase knowledge worker productivity” Designing and Managing the Digital Organization https://link.springer.com/article/10.1186/s41469-017-0014-1
- Barto, A., (2017), “The State of Learning Disabilities Today” Learning Disabilities Today https://ldaamerica.org/lda_today/the-state-of-learning-disabilities-today/#:~:text=That%20may%20sound%20like%20a,issues%20(U.S.%20Census%20Bureau).
- Amar, J,, Majumder, S., Surak, Z., Bismarck, N. (2022), “How AI-driven nudges can transform an operation’s performance,” McKinsey & Company https://www.mckinsey.com/business-functions/operations/our-insights/how-ai-driven-nudges-can-transform-an-operations-performance
- Amar, J,, Majumder, S., Surak, Z., Bismarck, N. (2022), “How AI-driven nudges can transform an operation’s performance,” McKinsey & Company https://www.mckinsey.com/business-functions/operations/our-insights/how-ai-driven-nudges-can-transform-an-operations-performance
About the Authors
Ariel LaFayette
Ariel is an incoming Philosophy PhD student at the University of Toronto (UofT) and specializes in hermeneutics, phenomenology, the philosophy of religion, and the history of psychology. More broadly, she is interested in how the questions posed by seminal scholars (e.g., Augustine, Kierkegaard, Gadamer) continue to influence our investigations into self-knowledge, the limitations of reason, and personal fulfillment.
Turney McKee
Turney McKee is a Director at The Decision Lab. He holds a Masters of Science in Cellular Biology and Bachelors of Science in Pharmacology, both from McGill University. He is interested in international healthcare systems and public policy. Before joining The Decision Lab, Turney worked as a competitive and business intelligence analyst in the healthcare and technology sectors.
Dr. Sekoul Krastev
Dr. Sekoul Krastev is a decision scientist and Co-Founder of The Decision Lab, one of the world's leading behavioral science consultancies. His team works with large organizations—Fortune 500 companies, governments, foundations and supernationals—to apply behavioral science and decision theory for social good. He holds a PhD in neuroscience from McGill University and is currently a visiting scholar at NYU. His work has been featured in academic journals as well as in The New York Times, Forbes, and Bloomberg. He is also the author of Intention (Wiley, 2024), a bestselling book on the science of human agency. Before founding The Decision Lab, he worked at the Boston Consulting Group and Google.
Sarah Chudleigh
Sarah Chudleigh is passionate about the accessible distribution of academic research. She has had the opportunity to practice this as an organizer of TEDx conferences, editor-in-chief of her undergraduate academic journal, and lead editor at the LSE Social Policy Blog. Sarah gained a deep appreciation for interdisciplinary research during her liberal arts degree at Quest University Canada, where she specialized in political decision-making. Her current graduate research at the London School of Economics and Political Science examines the impact of national values on motivations to privately sponsor refugees, a continuation of her interest in political analysis, identity, and migration policy. On weekends, you can find Sarah gardening at her local urban farm.
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I was blown away with their application and translation of behavioral science into practice. They took a very complex ecosystem and created a series of interventions using an innovative mix of the latest research and creative client co-creation. I was so impressed at the final product they created, which was hugely comprehensive despite the large scope of the client being of the world's most far-reaching and best known consumer brands. I'm excited to see what we can create together in the future.
Heather McKee
BEHAVIORAL SCIENTIST
GLOBAL COFFEEHOUSE CHAIN PROJECT
OUR CLIENT SUCCESS
$0M
Annual Revenue Increase
By launching a behavioral science practice at the core of the organization, we helped one of the largest insurers in North America realize $30M increase in annual revenue.
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Increase in Monthly Users
By redesigning North America's first national digital platform for mental health, we achieved a 52% lift in monthly users and an 83% improvement on clinical assessment.
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Reduction In Design Time
By designing a new process and getting buy-in from the C-Suite team, we helped one of the largest smartphone manufacturers in the world reduce software design time by 75%.
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Reduction in Client Drop-Off
By implementing targeted nudges based on proactive interventions, we reduced drop-off rates for 450,000 clients belonging to USA's oldest debt consolidation organizations by 46%
