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The Questions Your Predictive Model Can't Answer

The Questions Your Predictive Model Can't Answer | Decision Intelligence News | Scoop.it
"A health-tech company shipped a readmission-prediction model in early 2024. ... The operations team used it to decide which patients to prioritize for follow-up calls. They expected readmission rates to drop. Rates went up.
...
The variables that predicted readmission were not the same variables that caused it. The model never learned that distinction, because it was never designed to. It saw correlations and assumed they were handles you could pull. They weren't. They were shadows cast by deeper causes the model couldn't see.
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Business stakeholders rarely ask 'what will happen next?' They ask 'what should we do?' Should we raise the price? ... Should we offer this customer a discount? These are causal questions."
Decision Intelligence's insight:

Causal inference shares significant common motivations, ideas, and tools with Decision Intelligence. Through realistic examples, this article discusses what DI readers will recognize as the classic P- vs. C-decision dilemma: the shortcomings of predictive Machine Learning models.
DI's decision models center humans, capturing and aligning their expertise around a multi-link causal structure with a wide variety of applications from interactive simulation to statistical optimization. This article's causal inference approach leads toward a few specialized programming tools somewhat more narrow in scope, aimed at statistical analysis or derivation of particular causal relationships. Look for strong overlapping insights that stem from those shared motivations and familiar ideas: correlations are not levers; predictions do not always map cleanly to outcomes or actions; in a complex and confusing decision-making scenario, modeling the causal structure (even with a simple drawing) is often invaluable. Contributor: Isaac Kellogg.

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Decision Intelligence News
Decision Intelligence (DI) is the discipline concerned with how organizations and individuals design, support, and improve decision making at scale. It connects actions to outcomes in context by integrating human judgment, data, models, text, and AI into coherent decision systems. Decision Intelligence News curates developments across DI and related fields, including AI, machine learning, governance, enterprise architecture, orchestration, measurement, and decision modeling. Learn more at www.opendi.org and www.learn-di.com.
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