The Effects of Discontinuing Machine Learning Decision Support

38 Pages Posted: 13 Dec 2022

See all articles by Kevin Bauer

Kevin Bauer

University of Mannheim; Leibniz Institute for Financial Research SAFE

Michael Nofer

Goethe University Frankfurt

Benjamin Abdel-Karim

Goethe University Frankfurt

Oliver Hinz

Goethe University Frankfurt - Faculty of Economics and Business Administration

Date Written: December 12, 2022

Abstract

Advances in Machine Learning (ML) led organizations to increasingly implement predictive decision aids intended to improve employees’ decision-making performance. While such systems improve organizational efficiency in many contexts, they might be a double-edged sword when there is the danger of a system discontinuance. Following cognitive theories, the provision of ML-based predictions can adversely affect the development of decision-making skills that come to light when people lose access to the system. The purpose of this study is to put this assertion to the test. Using a novel experiment specifically tailored to deal with organizational obstacles and endogeneity concerns, we show that the initial provision of ML decision aids can latently prevent the development of decision-making skills which later becomes apparent when the system gets discontinued. We also find that the degree to which individuals 'blindly' trust observed predictions determines the ultimate performance drop in the post-discontinuance phase. Our results suggest that making it clear to people that ML decision aids are imperfect can have its benefits especially if there is a reasonable danger of (temporary) system discontinuances.

Suggested Citation

Bauer, Kevin and Nofer, Michael and Abdel-Karim, Benjamin and Hinz, Oliver, The Effects of Discontinuing Machine Learning Decision Support (December 12, 2022). SAFE Working Paper No. 370, 2022, Available at SSRN: https://ssrn.com/abstract=4299664 or http://dx.doi.org/10.2139/ssrn.4299664

Kevin Bauer (Contact Author)

University of Mannheim ( email )

L15
1-6
Mannheim, 68131
Germany

HOME PAGE: http://https://www.bwl.uni-mannheim.de/bauer/

Leibniz Institute for Financial Research SAFE ( email )

(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Michael Nofer

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Benjamin Abdel-Karim

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Oliver Hinz

Goethe University Frankfurt - Faculty of Economics and Business Administration ( email )

Mertonstrasse 17-25
Frankfurt am Main, D-60325
Germany

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