It is all about humans

Child playing astronaut with paper

In the end, it is all about humans.

Every big decision always involves a person to convince.

If computers were making the decisions, they would not be able to manage many cases, creating a gap that a startup, doing the same job, but, with a human will fill.

For example, loans: from what I see, mainstream loan applications are reviewed and decided by a computer, based on some numerical data (credit score and others) supposed to measure risk.

This has three significant very human consequences:

  1. people being refused something based on an algorithm, might never be able to get anywhere, creating a vicious spiral.
  2. people being approved something based on the same algorithm might be able to get way more than what they should
  3. gaming the algorithm becomes the focus

For the first type of people, a parallel industry will emerge (legal and not) to give hope of salvation while probably accelerating the fall. e.g. short term loans.

Note: while you can argue that algorithm will be different, in my experience, there is always a winner that takes it (almost) all. Copying your peers is a great way not to get fired (a very human consideration).

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