Newsletter #37 • Governance

When AI Makes Bad Recommendations

The Red Team Framework for AI governance.

The LinkedIn Summary

Rajesh's AI lead-scoring tool ranked a major enterprise lead as "low priority." Sales ignored it.

Months later: ₹50L opportunity. AI was wrong. No one questioned it.

Automation bias: Humans over-rely on AI without critical evaluation. Solution: AI Red Team.

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THE CASE: Blind Trust in AI

Rajesh's AI lead-scoring tool ranked a major enterprise lead as "low priority." Sales team ignored it. Months later they discovered it was a ₹50L opportunity. AI was wrong. But no one questioned it.

The Core Insight

Automation bias: Humans over-rely on AI without critical evaluation. 35% of AI decisions are suboptimal (Gartner). Critical questioning reduces AI-driven errors by 50% (IBM).

The Evidence

Automation bias: Over-reliance on AI (MIT)

35% of AI decisions suboptimal (Gartner)

Critical questioning: 50% fewer AI errors (IBM)

The AI Red Team Framework

How to Question AI Effectively

  • What data did it use?
  • What could it miss?
  • Does this make intuitive sense?
  • What's the cost of being wrong?

Assign one person to challenge AI output on critical decisions. Document "AI Oops" moments.

The Experiment

"AI Red Team" for 4 weeks on critical AI decisions. Track: Better outcomes? Fewer errors?

Sources

  • MIT. Automation Bias in Human-AI Collaboration. 2023.
  • Gartner. AI Decision-Making. 2023.

Key Takeaways

  • Blind trust in AI = disasters
  • Assign "AI Red Team" to challenge critical recommendations
  • Ask: What data? What's missing? Does this make sense?

Next Newsletter

The Data Literacy Gap

Read Newsletter #38

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