Remedy

Previous research has underscored the inclination of decision-makers to resist and override AI-generated guidance, posing a challenge for companies heavily invested in AI systems. Collaborating with Tapestry, the parent company overseeing Coach, Kate Spade, and Stuart Weitzman, we delved into this resistance and potential remedies. Tapestry, boasting 1,500 stores and an annual sales revenue of $6.7 billion, places considerable importance on precise inventory allocation and an efficient supply chain.

Previously, Tapestry employees relied on a transparent, rule-based algorithm for demand estimation. Seeking heightened accuracy, they introduced a more intricate “black box” forecasting model. In our randomized three-week study, employees demonstrated a tendency to align their decisions with the recommendations from the black box model up to 50% more closely compared to those derived from the simpler algorithm. This pattern signifies a heightened level of trust vested in the black box system by the employees.