Tag: algorithm

Algorithms at work in the gig economy

You might not know it, but most of our activities are managed and affected by algorithms at work. Both in our personal and business lives, we are exposed to daily management by computer programs. Which is quite a scary thought.

Today, Algorithms find you the right place to stay on Airbnb, they locate a nearby driver for your Uber trip, and they help you find products you are looking for in a Google search. They make it possible for health professionals to provide better care and services to patients. Algorithms are even used to hire and fire staff as well as provide quick and efficient online customer care.

What are Algorithms?

Algorithms are processes and rules that are followed in order to solve a problem. These problems are usually solved by computers.

Even with this knowledge in mind, it’s still a bit difficult to get a grasp on just how much algorithms are part of our lives. To bring about some clarity, let’s take a look at algorithms at work in our gig economy.

  • Amazon

Amazon’s fulfilment centre is abuzz with activity. Workers are fast-paced walking here and there, picking and scanning items for delivery. What’s keeping them so focused and on track? Algorithms are ensuring that they work speedily by timing them from one product scan to the next!

  • Food Delivery

All those UberEats deliveries you order are actually managed by algorithms. The algorithm matches you with a driver who is nearby and then interacts between the two of you. The algorithm decides which driver gets the job of collecting and delivering your meal. This means that drivers who aren’t always in prime locations often miss out on work opportunities.

  • Transport Services

If you use Uber, Bolt, or Taxify, your transport is also managed by an algorithm. The algorithm determines where you are and links you with the closest driver. The driver relies on the algorithm to send him work. Both of your lives are impacted by algorithms!

The Possible Downsides of Algorithms at work

While algorithms have sped up and streamlined processes for many businesses, they also come with their downsides. For instance, a person making contact with a company online may not be too enamoured with the cold yet polite responses of a computer answering questions.

Another fine example is the hiring process. Without human interaction, the potential employee may not feel particularly comfortable with the hiring process. When Uber and other transport system drivers find that they aren’t being delegated many pickups and their income is plummeting, there’s nothing they can really do about it as it’s all automated. That’s just the system.

Prepare for Algorithm Living Going Forward

We haven’t seen the end of algorithms managing our lives, services, and social encounters just yet, in fact, it would seem as if we still very much in the early days of a gig economy at this point. Futuristic movies show us what happens when we give machines too much control – it’s a risky business for sure, but it would seem that the modern world will be heading in this direction regardless.

If you want to ensure that you are along for the ride and that your business profits, it’s best to look into algorithms early on (now) and see how they can benefit your business too.

Thanks Bokke – Just How Wrong or Right Can an Algorithm Be?

Caps off to the Springboks who all but blew the English Roses right out of the proverbial water with their convincing win on Saturday the 2nd of November! As the country erupted into a roar of pride and excitement, few people gave much thought to the predictions that had been made before the game. No one cared! All that mattered was that the Boks had won and that their win unified a nation!

Now that the excitement has lulled into a warm, fuzzy feeling for all South African’s, and we cringe as we consider our outspoken criticisms of a team who are now our heroes, we take a breather to look back at some of the pre-World Cup predictions.

There’s a certain prediction software created by Dr David Scott, a statistician from New Zealand. Scott developed an interesting formula that was used not only to predict who will win each rugby match but also what the likely difference in points would be. He created this software with an algorithm.

What is an algorithm?

The Oxford English Dictionary defines an algorithm as follows: “a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer”. In a nutshell, by making use of algorithms, AI can sort through large quantities of data to determine patterns.

Did the Algorithms Get it Right?

If you have followed the rugby and have an interest in statistics (possibly for betting purposes), you might have found it intriguing when the prediction software got it right. Think about Australia vs Wales games – the prediction was dead on target. For those scared that robots and computers are coming for their jobs and lives, that could have been disturbing news. But don’t worry – the algorithms didn’t get it entirely right, which means your job and lifestyle are safe!

The Devil is in the Details

The one thing that brings to light the unreliability of algorithms is that out of 39 predictions, only 4 were completely wrong, only 1 was spot on, and the rest were mostly right. That’s not too convincing is it? How do you rely on an algorithm if the outcomes aren’t exact? That’s the whole point; you can’t when it comes to sports and well, betting on sports.

Businesses collect data so that algorithms can get to work and predict some pretty important information for them. This type of data and the outcomes are based on past behaviour and is potentially more useful in the business scenario than when betting on a sports match.

Why Does it Matter?

Algorithms should matter to all of us because they are only possible when data is collected (which includes your data too). This data is then used to predict an outcome.

Algorithms can also be used to manipulate an outcome. For example; a government or political party publicly predict a certain outcome backed by viable sounding reasons. Does the outcome perpetuate because it is true, or do people behave in the predicted manner to get the predicted outcome, because psychologically, everyone else seems to be doing it? After all, the government told them it would be so!

Also, with algorithms being used to predict every possible outcome, life becomes a little less interesting. It’s a little mundane to think that humans are working on algorithms that will be able to predict every possible outcome in future moments. Scary even!

Algorithms or No Algorithms – the Boks Won!

At the end of the day, what the algorithm said before the clash of the Springboks and the English roses really doesn’t matter. What matters is that the Boks won and that’s something that no algorithm can take away!