Meaning ● Cognitive Bias in Automation, within the SMB landscape, refers to systematic errors in thinking that skew the design, deployment, and usage of automated systems, ultimately hindering business growth. ● These biases can impact how SMBs select automation tools, interpret data generated by these tools, and make crucial decisions based on automated insights. Failing to recognize and mitigate these biases can lead to inefficient processes, inaccurate market predictions, and ultimately, reduced profitability for SMB operations. ● In essence, it highlights how human judgment flaws can be amplified, leading to suboptimal use of technology intended to improve business performance. Strategic business awareness and careful implementation strategies become vital to counteracting these negative influences within the SMB context. A crucial area of awareness involves algorithm aversion which suggests there is a potential negative human behavioral response that influences the success of the automation. ● The business risk management is crucial in deployment and operational phases to monitor and make strategic and operational adjustments for optimal automation outcomes.
