handshake

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

  1. 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 
  2. Benartzi, S., Beshears, J., Milkman, K., (2012) “Should Governments Invest More in Nudging?” Psychological Science https://journals.sagepub.com/doi/full/10.1177/0956797617702501 
  3. Clason, D. (2020) “Hearing Loss in the Workplace” Hearing Loss Association of America
  4. 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 
  5. 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)
  6. 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 
  7. 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's portrait

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.

A person stands against a brick wall, wearing a dark suit jacket over a white button-up shirt, looking directly ahead.

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.

A smiling man stands in an office, wearing a dark blazer and black shirt, with plants and glass-walled rooms in the background.

Dr. Sekoul Krastev

Sekoul is a Co-Founder and Managing Director at The Decision Lab. He is a bestselling author of Intention - a book he wrote with Wiley on the mindful application of behavioral science in organizations. A decision scientist with a PhD in Decision Neuroscience from McGill University, Sekoul's work has been featured in peer-reviewed journals and has been presented at conferences around the world. Sekoul previously advised management on innovation and engagement strategy at The Boston Consulting Group as well as on online media strategy at Google. He has a deep interest in the applications of behavioral science to new technology and has published on these topics in places such as the Huffington Post and Strategy & Business.

A woman is smiling, wearing a blue cardigan over a striped shirt, standing against a concrete wall with green plants and dappled sunlight in the background.

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.

About us

We are the leading applied research & innovation consultancy

Our insights are leveraged by the most ambitious organizations

Image

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.

0%

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.

0%

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%.

0%

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%

Read Next

Insight

Shaping the Future of Housing: Insights from Canadian Homeowners

How can developers, builders, and policymakers better align their strategies with Canadian homeowners' preferences for innovative housing solutions? This report explores the attitudes, awareness, and barriers that shape homeowner decisions around options like ADUs, middle housing, and modular homes, offering practical insights to guide future engagement and market alignment.

Insight

Scaling Up Housing Innovation: Insights from Developers in Canada

How can housing innovations like prefabrication and modular construction truly scale up if developers are still hindered by high costs, perceived risks, and regulatory challenges? And with 3.5 million additional housing units needed by 2030, what will it take for policymakers and industry leaders to shift the tide and make these solutions viable?

Notes illustration

Eager to learn about how behavioral science can help your organization?