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📄 Abstract
Abstract: This paper tackles the critical challenge of human-AI complementarity in
decision-making. Departing from the traditional focus on algorithmic
performance in favor of performance of the human-AI team, and moving past the
framing of collaboration as classification to focus on decision-making tasks,
we introduce a novel approach to policy learning. Specifically, we develop a
robust solution for human-AI collaboration when outcomes are only observed
under assigned actions. We propose a deferral collaboration approach that
maximizes decision rewards by exploiting the distinct strengths of humans and
AI, strategically allocating instances among them. Critically, our method is
robust to misspecifications in both the human behavior and reward models.
Leveraging the insight that performance gains stem from divergent human and AI
behavioral patterns, we demonstrate, using synthetic and real human responses,
that our proposed method significantly outperforms independent human and
algorithmic decision-making. Moreover, we show that substantial performance
improvements are achievable by routing only a small fraction of instances to
human decision-makers, highlighting the potential for efficient and effective
human-AI collaboration in complex management settings.
Key Contributions
Introduces a novel approach to policy learning for human-AI teams that focuses on complementarity and maximizing team rewards, rather than just algorithmic performance. It proposes a 'deferral collaboration' method robust to misspecifications and leverages divergent human/AI behaviors.
Business Value
Improves the effectiveness of teams composed of humans and AI, leading to better decision-making outcomes in various fields, from healthcare to finance and operations.