Machine Learning And Nudge Economics

Machine Learning And Nudge Economics

December 15, 2021
Procurement

Machine learning is seeping into our everyday lives, it powers our social feeds, our song recommendations, and our internet searches. It’s coming for your chatbots and the car you drive. Its potential to pervade business is obvious.

We wrote about our classification algorithm here, a tool that is forty-four thousand times faster than a human. Using machine learning to tag documents with a classification is just scratching the surface of what is possible.

The next step is for these algorithms to guide and enhance the work of humans, evaluating the work that they are doing and suggesting potential changes or improvements.

With the right training data, it becomes possible to detect anomalies and classify texts in real-time. In this scenario it becomes possible to alert users at the point that they are submitting data to a system, to ‘nudge’ them, and use behavioural economics to encourage them to adopt a different course of action.

For instance, imagine being able to alert someone publishing a tender that they need to include a requirement to reduce carbon in their specification? What about automatically coaching users who are submitting information to make sure that the data they submit is correct?

Imagine a customer services rep being asked to check if they’ve answered their customer’s question because the algorithm thinks that they’re not providing the information requested. This question might feel like an unwelcome intervention for the rep, but if it reduces the number of complaints and improves customer satisfaction, then this sort of nudging technique will become inevitable.

By intervening at critical points in any business process it becomes possible to adopt a hybrid model of machine learning, where human nuance is enhanced by algorithmic advice. Now we just have to create a machine learning model to determine whether this blog post will attract the right attention.

Talk to us about your procurement data needs, or our research and insights capability.

September 8, 2022

UK Risks Its Place On Anti-Corruption Body

The UK has been placed ‘under review’ by the 77-country-strong Open Government Partnership (OGP) due to its failure to meet mandatory criteria...
September 8, 2022

Thurrock Exposes Transparency Blind Spot

An investigation by The Bureau of Investigative Journalism (TBIJ) into investments by Thurrock Borough Council has led to the resignation of the...
September 6, 2022

New Zealand Government Reviewing Procurement System.

It’s always encouraging when we see governments around the world looking to improve their procurement transparency and efficiency. The New Zealand Government...
September 1, 2022

Collecting Data For Sustainable Procurement In Construction

Over the last few weeks we have been looking at setting a sustainable procurement framework in the construction industry, and what kind...
August 30, 2022

Selecting Data For Sustainable Procurement In Construction

It is estimated that around 40-50% of natural resources are transformed into construction material, and that as much as 30% of all...
August 25, 2022

Setting A Sustainable Procurement Framework For Construction

When procuring construction projects, it can be useful to underpin sustainability criteria on existing policy and regulation. When assessing the enabling framework,...
August 18, 2022

Big Net Zero Contract Win For Small Cornish Business

A small Cornish company has purportedly won a £70bn contract to help deliver the country's transition to Net Zero. The Penzance based...
August 16, 2022

Supporting Sustainable Procurement In ICT

One of the key challenges of sustainably procuring ICT lies in the lack of transparency in supply chains. To overcome this challenge,...
August 11, 2022

Why Is Sustainable Procurement Important For The ICT Sector?

The extraction of raw materials, manufacturing, transportation, use, and disposal of ICT products is associated with a number of environmental, social, and...
August 10, 2022

Shifts Towards Sustainable Sourcing

A while ago,  we shared an article on findings by the Boston Consulting Group and the World Economic Forum that showed procurement is responsible...
August 9, 2022

Supporting Sustainable Procurement In The Construction Industry

Construction projects are usually long and complex, involving the participation of different stakeholders throughout the different project stages. There are certain factors...
August 4, 2022

Why Is Open SPP Important In The Construction Sector?

The construction industry is estimated to account for 6% of global GDP, with Africa's construction market valued at around USD 5.4 billion...
August 2, 2022

US Advances Equity And Economic Opportunity Through Procurement.

With the implementation of the Bipartisan Infrastructure Law, the Biden-Harris Administration set an objective to ensure federal investments built wealth and opportunity...
July 28, 2022

5 Reasons To Export To Government

If you want to grow exports, you should start with the largest and most transparent industry in the world, and here are...
July 26, 2022

Sustainable Public Procurement and Economic Development

What is it? For many industries contracting has become a global affair. Governments are rightly keen to gain economic advantages from a...

Newsletter

Compelling research, insights and data directly into your inbox.

Recent media stories

The Times
May 30, 2022
CIPFA
August 3, 2021

Search

Scroll to Top