AI Predicts Human Behavior with 85% Accuracy

Maverick Foo
Saturday, 28th September 2024

We all love ourselves a little fortune-telling. I mean, to be able to predict the future, even by a few days ahead, sounds like the plot of the next summer blockbuster.

But what if there is already a tool to predict how someone would react or respond?

Or better yet… a tool that you can access for as little as USD20 per month!

That’s exactly what the latest research out of New York University and Stanford University shows. These researchers tested the capabilities of GPT-4, one of AI models by OpenAI , to predict outcomes of real-world social science experiments.

And the results? 85% accuracy—which is even better than most human forecasters!

Why Was This Study Done?

With AI becoming more integrated into decision-making across industries like marketing, HR, and public policy, this research sought to understand how well AI could simulate human responses and predict outcomes.

Using data from over 70 experiments and involving more than 100,000 participants, researchers wanted to see if AI could reliably predict human behavior across fields like psychology, political science, and public health.

The results revealed AI’s potential not only to match human expertise but to complement it in new, powerful ways.

AI research highlights

So is this a positive possibility, or negative uncertainty?

Key Research Highlights

High Predictive Accuracy:

GPT-4’s predictions hit a correlation of r = 0.85 with actual results, with even higher accuracy (r = 0.90) in unpublished studies—showing that AI isn’t just memorizing past data.

Broad Use Across Fields:

Whether predicting political opinions or social attitudes, AI performed well across the board, suggesting it could be used in a variety of business contexts.

Continual Improvement:

With every iteration, the accuracy of AI models like GPT-4 is improving. This points to a future where AI becomes even more reliable in making predictions and supporting decisions.

AI + Humans = Even Better:

When AI predictions were combined with human expertise, the results were even better. This “ensemble approach” highlights the synergy between human intuition and AI’s data-crunching abilities.

AI the seed for the future

Will AI be the seed of change for this century?

What These Research Findings Mean for You

The value of this research extends far beyond academic circles—there are immediate, practical takeaways for business leaders, HR professionals, and decision-makers.

Sharper, Faster Decision-Making

Imagine having tools that help you forecast customer behaviour or employee engagement. AI’s ability to predict human responses with such accuracy means you can anticipate shifts and act accordingly—whether you’re developing a new training program or launching a marketing campaign.

Focus on What Matters

AI can process mountains of data in seconds. For you, this means more time focusing on creativity, leadership, and strategy. Rather than getting bogged down in data analysis, AI lets you work on the bigger picture—like fostering innovation or improving employee satisfaction.

AI as Your Wingman

While AI can handle the heavy lifting, your role is still critical. The real magic happens when you combine AI’s recommendations with your own expertise. AI can point the way, but your judgment, experience, and context turn those insights into actions that matter.

Personalized Training and Development:

In HR and training, AI can predict how different groups of employees might respond to various development strategies. But ultimately, it’s the human element—your understanding of your team’s emotions and needs—that will make the difference in implementing those strategies successfully.

AI is opening doors for more effective decision-making, but it doesn’t replace human intuition. It enhances it.

AI better with newer models

Will AI just get smarter with newer models?

Better Models, Greater Impact

While the research we’ve discussed was conducted on the older version of GPT-4, it’s crucial to realize that AI has already come a long way since then. The version used in this study was a legacy model, but newer iterations like GPT-4o and GPT-4 o1-preview have already begun to show significantly better performance in understanding human behavior, emotional nuance, and context.

These newer models are more precise in predicting outcomes, understanding intent, and providing actionable insights.

Think about it: if GPT-4 could predict human behavior with 85% accuracy, the next generation of AI is likely to push these boundaries even further. With improvements in contextual awareness and emotional intelligence, AI won’t just assist in straightforward tasks; it will enhance complex decision-making processes across sales, HR, customer engagement, and beyond.

This means the potential positive impact on businesses, from improving customer experiences to fine-tuning employee training programs, is only going to get greater. AI will not only get better at predicting what people will do—it will get better at understanding why they do it.

And that’s where the true value lies: AI will become an even more powerful partner, helping professionals make decisions that are both data-driven and human-centered.

AI as your work partner

Let’s set fear aside and look at potential future of this discovery.

Creative, Unconventional & Potential Uses of AI

AI isn’t just for automating tasks or analyzing data; it can also play a crucial role in more creative and unorthodox applications that go beyond the obvious.

Let’s look at how AI can enhance human expertise in ways that surprise even the experts—and at the heart of each example is AI’s ability to predict human behavior, allowing professionals to adapt in real time.

1. AI-Driven Role-Playing for Sales Professionals

Forget static sales scripts. Meet Hashim, a sales rep at a fast-growing tech company, preparing for a big pitch.

Instead of rehearsing with a colleague, Alex turns to an AI assistant that predicts different types of prospects—skeptical, analytical, or emotionally driven—and reacts dynamically based on his approach.

By anticipating how different personality types might respond, the AI challenges Alex’s strategy and offers real-time feedback. This dynamic practice makes Alex sharper and more adaptable when facing the actual client, giving him a competitive edge in closing the deal.

2. AI as a Personalized Training Mentor

For HR managers like Rachel, AI has become a game-changer in training and development. Rachel uses an AI mentor that not only tracks employees’ progress but also predicts how they will respond to various challenges.

When Ravi, a leadership candidate, prepares for a management role, the AI simulates difficult team dynamics, offering tailored feedback based on Jason’s real-time performance. The AI’s predictions allow Rachel to provide a truly personalized mentorship experience, accelerating Jason’s development as a future leader.

AI working with employees

Imagine having a sparring partner to cover the non-obvious perspectives.

3. AI-Powered Product Innovation

At the helm of R&D, Lisa relies on AI as a brainstorming partner.

The AI analyzes past product launches, customer feedback, and emerging trends, predicting what features or products will resonate with different customer segments.

By anticipating market shifts and customer preferences, AI helps Lisa’s team create innovative products that not only meet current demand but also capture emerging opportunities. AI’s predictive capabilities keep the team ahead of the curve in a rapidly evolving market.

4. AI in Employee Wellness Programs

Carlos, VP of People Operations, uses AI to monitor employee wellness.

The AI tracks work patterns and task completion, predicting potential burnout or disengagement before it happens.

By identifying early signs of stress, Carlos can proactively offer personalized wellness support. Thanks to AI’s ability to anticipate these issues, Carlos helps prevent long-term productivity dips, fostering a healthier, more engaged workforce.

AI helping you succeed

Endless creativity potential!

5. AI-Assisted Conflict Resolution

For Sarah, an HR professional dealing with workplace conflicts, AI provides an invaluable training tool.

The AI predicts how different employees might react in high-stress scenarios, helping Sarah prepare for difficult conversations. It simulates everything from frustrated employees to tense client interactions, allowing Sarah to practice de-escalation techniques. AI’s ability to foresee potential conflict dynamics ensures Sarah is more effective in real-life situations.

6. AI in Creative Campaign Development

Creative block is no match for Wai Hong, a marketing manager who uses AI to generate fresh campaign ideas. The AI analyzes brand history, customer behavior, and market trends, predicting which themes and creative angles are most likely to resonate with the target audience.

With AI’s help, Wai Hong’s team breaks through their creative rut, producing campaigns that feel both fresh and strategically aligned with customer expectations.

7. AI in Personalized Coaching for Non-Performers

Meet Azhar, a mid-level manager struggling to meet performance expectations. Instead of waiting for his quarterly review, Azhar is paired with an AI coach that predicts his performance trends in real time, offering actionable feedback on how to improve.

By identifying gaps in communication and time management, the AI provides personalized coaching that helps James gradually improve. The AI’s ability to anticipate James’s challenges allows for continuous, tailored support, ensuring he gets back on track before major issues arise.

A future with AI partnership

Prepping ourselves for a different future – a future of co-intelligence.

Conclusion: Embrace Human-AI Synergy

AI’s ability to predict human behavior with impressive accuracy is no longer a future promise—it’s happening now, and it’s only going to get better. As we’ve seen, AI doesn’t just automate routine tasks; it enhances creativity, decision-making, and even human relationships.

From sales professionals honing their pitch through AI-driven role-play to managers receiving personalized coaching, the power of AI lies in its capacity to anticipate behavior, adapt in real time, and offer personalized support.

What’s exciting is that the research we’ve discussed was conducted using an older model of AI, yet the results were already remarkable. As new iterations like GPT-4o and o1-preview continue to evolve, the potential for AI to assist businesses in more precise and nuanced ways will grow exponentially.

The takeaway is clear: AI isn’t here to replace us

Instead, it’s a tool that amplifies human expertise, allowing us to focus on the strategic, creative, and empathetic aspects of our work. By blending AI’s predictive power with human intuition, companies can make smarter decisions, improve employee performance, and foster more innovative solutions. The future isn’t AI versus humans—it’s AI with humans, working together to shape a better, more efficient world.

So, what’s your next move? Start exploring how AI can enhance your day-to-day operations. Whether it’s in sales, marketing, HR, or product innovation, AI is the ally you’ve been waiting for.

Research Links

  1. Predicting Results of Social Science Experiments Using Large Language Models [https://docsend.com/view/ity6yf2dansesucf]
  2. How Does AI Improve Human Decision-Making? Evidence from the AI-Powered Go Program [https://ide.mit.edu/wp-content/uploads/2021/09/SSRN-id3893835.pdf?x96981]
  3. How AI is Enhancing Human-Driven Decisions [https://tepperspectives.cmu.edu/all-articles/how-ai-is-enhancing-human-driven-decisions/]
  4. Advancing Human-AI Complementarity: The Impact of User Expertise and Algorithmic Tuning on Joint Decision Making [https://ar5iv.labs.arxiv.org/html/2208.07960]
  5. The Future Of Logistics – How AI Is Revolutionizing Decision-Making [https://www.capgemini.com/us-en/insights/expert-perspectives/the-future-of-logistics-how-ai-is-revolutionizing-decision-making/]
Maverick Foo

Maverick Foo

Lead Consultant, AI-Enabler, Sales & Marketing Strategist

Partnering with L&D & Training Professionals to Infuse AI into their People Development Initiatives 🏅Award-Winning Marketing Strategy Consultant & Trainer 🎙️2X TEDx Keynote Speaker ☕️ Cafe Hopper 🐕 Stray Lover 🐈

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