The Economy of Algorithms is an unexpectedly delightful read for a book about technology. Marek Kowalkiewicz, the author, is professor at Queensland University of Technology and an advisor to the private sector. In his new book, Marek delves into the increasingly pivotal role that algorithms, or "digital minions" as the text affectionately terms them, play in our daily lives and the broader marketplace. For customer experience professionals, this book offers a wealth of insights, observations, encouragement and cautionary tales about the burgeoning autonomy of these digital actors. At it’s heart, the book is optimistic about technology and keeps a clear focus on how algorithms affect real people.
One of the key takeaways for customer experience professionals is the dual-edged nature of digital minions. While they can streamline and enrich the customer experience, they also have the potential to 'overstep', creating scenarios where consumer choice is undermined or privacy is compromised. The example of the Amazon Dash Button highlights the importance of transparency and informed consent in customer interactions. The device's ban in Europe underscores the need for adherence to consumer rights and regulatory expectations.
The book discusses the problematic aspects of digital minions in market dynamics, particularly their role in perpetuating monopolistic practices. The case of Amazon's Alexa overcharging customers exemplifies how algorithms could be used to exploit consumers rather than serve them, which is a crucial consideration for professionals tasked with fostering positive customer relations. The ethics of using algorithms are important. Getting it wrong is a fast way to lose trust.
The Economy of Algorithms by Marek Kowalkiewicz
Why should you read this?
Marek is a fabulous storyteller, making a subject other other authors might make feel laborious into a joy to read.
The book explores of how algorithms, termed as 'digital minions', are being integrated into consumer products and services. For CX professionals, understanding these technologies is crucial as they increasingly influence how customers interact with businesses.
It delves into how these algorithms impact customer autonomy, privacy, and the overall experience. Knowing the balance between personalized services and invasive practices is essential for designing experiences that respect customer preferences and legal boundaries.
It talks through cases like the Amazon Dash Button and the European Union’s regulatory response, providing CX professionals with real-world examples of how digital strategies need to adapt to comply with consumer protection laws.
By understanding the competitive advantages and risks associated with deploying algorithms, The Economy of Algorithms can better strategize on leveraging technology to enhance customer satisfaction while avoiding practices that could alienate or harm consumers.
In addition, you will no doubt get some great ideas about automating your own ‘less than interesting’ work. Make sure you read Chapter 5, which describes how a software developer automated their job for 6 years (!!!) without it being noticed by their manager.
The Economy of Algorithms is available through Black Inc Books and Amazon.
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Author: Sarah Daly is a co-founder of the CX Institute. She is an AI researcher, entrepreneur and artist. She is currently undertaking PhD research investigating trust, human-machine collaboration and creative machines.