Human Judgment and Risk Management in AI Integration

New research shows that while AI can boost high performers' results by 10–15%, it can actually lower the performance of struggling entrepreneurs by roughly 8%. This decline occurs because low-performing users often lack the business judgment to distinguish between high-quality, tailored advice and generic, potentially harmful strategies.
While successful entrepreneurs used AI for specific, contextual solutions—such as identifying the best livestock for their region or buying a generator for blackouts—low performers tended to follow broad tips like lowering prices or increasing advertising. These general suggestions often backfire by increasing costs without addressing a business's underlying problems. Ultimately, AI cannot substitute for human experience or business-specific training; it requires a critical human filter to ensure its probabilistic outputs are used effectively.