We can find some clues in the work of data scientist César Hidalgo on how humans judge machines. When we use a program, we zero in on the performance of the tool. Thus, any prediction error by that program will make our financial professional lose confidence in it. And in most of the cases, it does not matter if the algorithm is on average better than the human. Our financial adviser will let her intuition and experience take over. Hidalgo’s research shows that we behave differently when judging human advice. We look beyond performance, by factoring in the intentions of the person giving us advice. When we engage with a private banker or trust our money to a fund manager, we will assume an alignment with our purposes, especially if the contract has performance-incentive fees.

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