A Psychologist Explains How AI and Algorithms Are Changing Our Lives
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A Psychologist Explains How AI and Algorithms Are Changing Our Lives

Behavioural scientist Gerd Gigerenzer has spent decades studying how people make choices. Here’s why he thinks too many of us are now letting AI make the decisions.

By DANNY LEWIS
Wed, Mar 22, 2023 9:03amGrey Clock 4 min

In an age of ChatGPT, computer algorithms and artificial intelligence are increasingly embedded in our lives, choosing the content we’re shown online, suggesting the music we hear and answering our questions.

These algorithms may be changing our world and behaviour in ways we don’t fully understand, says psychologist and behavioural scientist Gerd Gigerenzer, the director of the Harding Center for Risk Literacy at the University of Potsdam in Germany. Previously director of the Center for Adaptive Behaviour and Cognition at the Max Planck Institute for Human Development, he has conducted research over decades that has helped shape understanding of how people make choices when faced with uncertainty.

In his latest book, “How to Stay Smart in a Smart World,” Dr. Gigerenzer looks at how algorithms are shaping our future—and why it is important to remember they aren’t human. He spoke with the Journal for The Future of Everything podcast.

The term algorithm is thrown around so much these days. What are we talking about when we talk about algorithms?

It is a huge thing, and therefore it is important to distinguish what we are talking about. One of the insights in my research at the Max Planck Institute is that if you have a situation that is stable and well defined, then complex algorithms such as deep neural networks are certainly better than human performance. Examples are [the games] chess and Go, which are stable. But if you have a problem that is not stable—for instance, you want to predict a virus, like a coronavirus—then keep your hands off complex algorithms. [Dealing with] the uncertainty—that is more how the human mind works, to identify the one or two important cues and ignore the rest. In that type of ill-defined problem, complex algorithms don’t work well. I call this the “stable world principle,” and it helps you as a first clue about what AI can do. It also tells you that, in order to get the most out of AI, we have to make the world more predictable.

So after all these decades of computer science, are algorithms really just still calculators at the end of the day, running more and more complex equations?

What else would they be? A deep neural network has many, many layers, but they are still calculating machines. They can do much more than ever before with the help of video technology. They can paint, they can construct text. But that doesn’t mean that they understand text in the sense humans do.

Does being able to understand how these algorithms are making decisions help people?

Transparency is immensely important, and I believe it should be a human right. If it is transparent, you can actually modify that and start thinking [for] yourself again rather than relying on an algorithm that isn’t better than a bunch of badly paid workers. So we need to understand the situation where human judgment is needed and is actually better. And also we need to pay attention that we aren’t running into a situation where tech companies sell black-box algorithms that determine parts of our lives. It is about everything including your social and your political behaviour, and then people lose control to governments and to tech companies.

You write that “digital technology can easily tilt the scales toward autocratic systems.” Why do you say that? And how is this different from past information technologies?

This kind of danger is a real one. Among all the benefits it has, one of the vices is the propensity for surveillance by governments and tech companies. But people don’t read privacy policies anymore, so they don’t know. And also the privacy policies are set up in a way that you can’t really read them. They are too long and complicated. We need to get control back.

So then how should we be smart about something like this?

Think about a coffee house in your hometown that serves free coffee. Everyone goes there because it is free, and all the other coffee houses get bankrupt. So you have no choice anymore, but at least you get your free coffee and enjoy your conversations with your friends. But on the tables are microphones and on the walls are video cameras that record everything you say, every word, and to whom, and send it off to analyze. The coffee house is full of salespeople who interrupt you all the time to offer you personalised products. That is roughly the situation you are in when you are on Facebook, Instagram or other platforms. [Meta Platforms Inc., the parent company of Facebook and Instagram, declined to comment.] In this coffee house, you aren’t the customer. You are the product. So we want to have a coffee house where we are allowed again to pay [for] ourselves, so that we are the customers.

We’ve seen this whole infrastructure around personalised ads be baked into the infrastructure of the internet. And it seems like it would take some pretty serious interventions to make that go away. If you’re being realistic, where do you think we’re going to be headed in the next decade or so with technology and artificial intelligence and surveillance?

In general, I have more hope that people realise that it isn’t a good idea to give your data and your responsibility for your own decisions to tech companies who use it to make money from advertisers. That can’t be our future. We pay everywhere else with our [own] money, and that is why we are the customers and have the control. There is a true danger that more and more people are sleepwalking into surveillance and just accept everything that is more convenient.

But it sounds so hard, when everything is so convenient, to read privacy policies and do research on these algorithms that are affecting my life. How do I push back against that?

The most convenient thing isn’t to think. And the alternative is start thinking. The most important [technology to be aware of] is a mechanism that psychologists call “intermittent reinforcement.” You get a reinforcement, such as a “Like,” but you never know when you will get it. People keep going back to the platform and checking on their Likes. That has really changed the mentality and made people dependent. I think it is very important for everyone to understand these mechanisms and how one gets dependent. So you can get the control back if you want.

This interview has been condensed and edited.



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‘Look Them in the Eye.’ As Maui Rebuilds, Returning Tourists Need to Be Mindful of the Trauma, Says Cultural Advisor.
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There’s an opportunity for education as tourists return to Maui while it rebuilds from last summer’s devastating wildfire, says Kalikolehua Storer, a Lahaina resident and the area cultural and training advisor for Hyatt’s Maui resorts.

Designated a National Historic Landmark in 1962, the Lahaina Historic District—once a lush Hawaiian capital and retreat for Hawaiian monarchs—is beloved by residents, explored by tourists, and has a deep-rooted heritage. Storer was working on the opposite side of the island when the blaze started last August. She scrambled to connect with family and friends. And like so many others, she grappled with the utter chaos that rapidly destroyed her hometown.

Storer’s home was spared, but the fire ultimately claimed 115 lives and destroyed or damaged more than 2,300 structures, including culturally significant sites like the Na ‘Aikane o Maui Cultural and Research Center, which housed invaluable Hawaiian artefacts (books signed by kings, genealogy, maps, and more).

Kalikolehua Storer, a Lahaina resident and the area cultural and training advisor for Hyatt’s Maui resorts
Courtesy of Hyatt

Historically, Lahaina thrived from mauka to makai (mountain to ocean), with waterways nourishing native ecosystems and communities. However, years of water redirection and climate-related drought set the stage for such a disaster, and according to Storer, the fire underscored the erosion of Hawaiian control over land and natural resources, spotlighting issues like land degradation, water misappropriation, and tourism’s stronghold on Maui.

Tourism makes up a substantial part of Maui’s GDP. The wildfire led to a 51.4% drop in visitor arrivals between August and October 2023 compared to 2022, triggering a sharp 87.1% rise in unemployment, according to government statistics.

The sector’s dominance highlights the need for a more balanced and sustainable model. Moreover, the fire’s impact on tourism underscores the urgency to diversify Hawaii’s economy for greater growth and resilience. Lahaina’s water management issues, such as the historical diversion for sugar cane cultivation, have drastically altered local ecosystems.

With only 23% of water allocated for public use and the majority consumed by the private sector (resorts, golf courses, and some agriculture, for instance), the ecological imbalance has had severe consequences for indigenous environments. Storer said she believes the aftermath of the fires and the strain on Maui’s tourism highlight the interconnectedness of ecological health and economic stability.

In response to the crisis, Maui Mayor Richard Bissen formed a five-member advisory team to lead the recovery efforts, with Storer as a key participant. Storer also sits at the table of Maui’s Office of Recovery Natural and Cultural Resources, which helps to shine light on issues impacting air, water, and land. Storer collaborates with partners from federal, state, and county levels, along with Lahaina’s cultural practitioners, to facilitate Lahaina’s recovery post-wildfire.

Storer shared visions of Maui’s rebuild with  Penta , and the balance between tourism, ecology, and the road to sustainable solutions.

Penta: With such a huge road ahead, how are you embracing hope? And what is your ideal vision for Maui?

Kalikolehua Storer: I know that I can get caught up in the end result of what will or will not work, but in the moment, our community needs to be heard, and this is my part to lean into what they are sharing. People have envisioned Lahaina as a walking town with cultural sites, a cultural marketplace, and restoring Mokuʻula, the site of the private residence of King Kamehameha III from 1837-1845. It has since been buried under a baseball field.

We also need to diversify the economy. This is a big task, but with Hawaiian leaders in all sectors, I am confident that this can be accomplished. We have nowhere else to go but up, so all ideas are worth a conversation. My ideal Lahaina is to rebuild our historical sites, churches, and learning centres, and better care for the ocean, land, and air. To be better stewards, we need to educate and make it a priority. All of us, including visitors, need to know the importance. The issues we have about water and land need to be resolved.

Explain more about the land and water and how they are pivotal parts of recovery. 

The West Maui Mountains are home to the Pu’u Kukui Watershed and Mauna Kahalawai Watershed Partnership (caretakers of the mountain area directly above the impact zone), which used to flow through waterways and land divisions ( ahupua’a ) to enrich the ecosystems. However, when the sugar cane and pineapple industry arrived, that water was diverted and went straight to those farms. The water never went back to the way it was, and because of this, the indigenous ecologies have been drained. So, water needs to be returned to streams, and a greater percentage needs to be given for public use. This is a major issue and needs to be resolved. The waterways are there, but they need to be cleaned and prepared for water to flow. That has to start upland of the watershed. Looking at an aerial map of Kauaula Valley, most of the area is dry, but along the river where the Palakiko family lives is very lush. They prepared the stream area, and it came back. However, that took years because of private-sector control.

“Asking people how they are doing, looking them in the eye, and caring about them can make a huge difference,” Storer says.
Courtesy of Hyatt

Many people believe that tourism is the biggest problem. Is that true?

Right after the fire, many people encouraged tourists to stay away. And people listened. Our economy dropped because people stopped coming. Unemployment shot up, and the economy, as a whole, suffered. Our island is so dependent on tourism, and that is part of the problem. I believe we need to diversify the economy.

How can we educate tourists, and how can hotels be better stewards?

It truly is all about education and visitors engaging in cultural experiences and even conservancy programs, so that they have a better understanding of people and place when they visit. At Andaz and the other Hyatt hotels in Maui, I’ve developed very strong, culturally driven programs to engage our guests in authentic Hawaiian activities. Things like lei making, coconut weaving, hula lessons, celestial navigation, taro demonstrations, and Natural Cultural Resources programming with the Pu’u Kukui Watershed Preserve, Kipuka Olowalu, and the Ma Ka Hana Ka ‘Ike at Mahele Farms.

At Andaz, the lūʻau experience is called the Feast at Mōkapu and focuses on the journey of the Polynesian ancestors arriving on Maui and settling in the ahupua’a where the resort sits. We don’t hold back in that storytelling. We dive into history that isn’t normally spotlighted at luau, and the uncomfortable truth of settlers to Hawaii is really important. After the fires, this education became even more important, and I encourage tourists to participate in experiences like this.

Hotels play a huge role in this and can provide cultural sensitivity sessions for their guests.

How can tourists play a role in the rebuilding?

It’s important now more than ever for visitors to consider what happened, and that their waiter, housekeeper, bartender, front desk attendant, dive instructor, store clerk, literally everyone was somehow impacted by this. Asking people how they are doing, looking them in the eye, and caring about them can make a huge difference. Also, if you choose to visit Maui, there are ways to volunteer and donate. We’re not just looking at physically rebuilding here, we’re looking at emotional wellness, history, and so much more that is going to take years. So, I would say donating to Maui Strong and taking a few hours of vacation time to volunteer can greatly help.

Allocation of funds and policies that help to financially sustain our agencies that do the work in the watersheds, waterways, farmers, and ocean agencies. The work they do today is the key to this turnaround. I believe that visitor taxes should be allocated for our Natural and Cultural Resources effort.

How can tourists be a “good tourist” and still visit in a conscientious way?

Be kind without being maha’oi (being forward in asking) and asking so many questions. A nice, genuine smile and encouraging words in passing can uplift someone. Also, those who own vacation rentals. We need help from that sector. We need to take a look at the things that got us into this crisis to begin with. Unfortunately, we are having to work through policies written years ago, not ever thinking we would be in this situation.

This interview was edited for length and clarity.

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