Conference Agenda

Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).

 
 
Session Overview
Session
AI in Finance II - 3
Time:
Saturday, 14/Dec/2024:
10:50am - 11:45am

Session Chair: Shumiao Ouyang, University of Oxford
Discussant: Qiushi Huang, Shanghai Jiao Tong University
Location: 9B312 (3rd basement floor, International Hall)


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Presentations

Optimal Integration: Human, Machine, and Generative AI

Hongda Zhong

University of Texas at Dallas and CEPR

I study the optimal integration of humans and technologies in multi-layered decision-making processes. Each layer corrects errors made by previous layers but also introduces new errors. The ratio between these two aspects serves as a one-dimensional quality measure that uniformly ranks all technologies. Optimal integration requires higher quality technologies to be applied later. Furthermore, technologies asymmetrically influence human effort. Initial players specialize in correcting errors, while final players focus on avoiding new errors. When error costs depend on unobservable states, a uniform ranking is not generally possible. Consequently, the introduction of new technologies can significantly disrupt the integration of existing ones.


Zhong-Optimal Integration-149.pdf


 
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