Commonsense gives us an edge over computers, so long as we use it
Many think that we originated from these wonderful mammals and then, over time, learnt to speak and became smarter. I'm not so sure. After all, with world tourism exploding, Louise and her friends are spending a small fortune to trek deep into the African jungle to sit at the feet of primates which hold out their hands (or are they front feet) and are fed oranges. You might wonder which is the smarter species.
The smarts are one thing, but that's nothing without our health, and the poor old gorilla's leading form of death is cardiovascular failure, which Charlie's 92-year-old dad thankfully managed to overcome with a simple hospital procedure last week.
But though we might be similar in all sorts of ways, our distinguishing feature has always been our brain. This astonishing organ has propelled our evolutionary success but some recent events make me wonder if we are about to go backwards.
This week there was the announcement by one of the big media groups, IPG Mediabrands, which trades in Australia as Universal Media, reaffirming its commitment to conduct at least half of its media buying programmatically. "What does that mean?" asked Louise, who has a default brain alert for jargon. "Simple," Charlie said. "It means the hard drive replaces the spongy grey matter."
So will this computer-led intelligence take over the business world? Let's have a look at the history.
In the 1960s it was predicted that within a decade the computer would become the world chess champion and create leading theories of mathematics and psychology. Thankfully, none of that happened because a computer is not a brain. It does not create a state of mind. It does not have unconscious instincts, intuitions and tendencies. Put simply, it does not have commonsense.
The human brain is simply incomparable; it is 2 per cent of the mass of the body and yet it uses 20 per cent of the body's energy because it works so hard to solve problems that computers never will. In fact, it works 24 hours a day, and recent research shows that it may work its hardest when we are asleep. The phrase, "I'll sleep on it" is not so silly because sleep is widely thought to be the foundation of decision-making and an essential ingredient for memory and all that it entails.
There's no doubt that we in business need to use every sensible technological development that we can, but not at the expense of our unique human advantage.
In building Australia's biggest advertising business I always knew the smartest thing we had was our people. I remember looking around our office Christmas party a few years ago and seeing 600 people. More than 50 per cent were women, more than 25 per cent born outside of Australia, but 100 per cent of them clever and dedicated. It seemed to be a good combination.
Computers can make a lot of jobs easier but they'll never replace the brain.
The proposal that programmatic buying will become the new world doesn't really make any sense. In fact, a heavy reliance on computers can lead to real problems.
Those who invest in the stockmarket would know about HFT - high-frequency trades, also known as algorithmic trading, which uses computers for automated buying and selling. In 2009 HFT accounted for 60 to 73 per cent of US trades, but fell to 50 per cent by the end of last year because it is believed to have heavily contributed to the 2010 Flash Crash that was triggered by a single $4.1 billion trade. And then all hell broke loose.
I'm not saying that programmed media buying is going to crash the advertising business by automatically pouring unheard of amounts of money into the media owners' bank accounts. I'm just saying that we need to use our commonsense and our clients' oranges wisely and always consciously.
Frequently Asked Questions about this Article…
Programmatic media buying is using computers and algorithms to automate the purchase of advertising. IPG Mediabrands (trading in Australia as Universal Media) has committed to conducting at least half of its media buying programmatically, which signals a major industry shift. For advertisers and investors that means potential efficiency gains and cost savings—but also a need for careful oversight, since the article warns heavy reliance on computers can create problems if human commonsense and judgment are removed.
According to the article, no. Computers can make many tasks easier, but they lack commonsense, unconscious instincts and intuition that human brains provide. The author argues that human talent and judgment remain the advertising business's biggest assets, so technology should support people rather than replace them.
The article highlights the human brain's unique qualities—intuition, unconscious instincts, the ability to ‘sleep on’ problems and form judgments—that computers don’t have. It emphasizes that people bring creativity, context and commonsense to decisions, which are essential advantages when using technology in business or investing.
High‑frequency trading (HFT) is algorithmic, computer‑led buying and selling of stocks at very high speeds. The article notes HFT accounted for 60–73% of US trades in 2009, falling to about 50% by the end of last year, and is believed to have heavily contributed to the 2010 Flash Crash—triggered by a single $4.1 billion trade—which shows how algorithmic systems can amplify market instability.
The article doesn't claim programmatic media buying will cause a crash in advertising, but it warns that heavy reliance on computers can create real problems. For investors, the takeaway is to be aware of the risks of automated systems, insist on human oversight, and use commonsense when evaluating businesses that are increasingly automated.
Based on the article's perspective: recognise and value companies that balance tech with skilled people, ask management how they retain human oversight over automated processes, and be cautious with firms that appear to lean entirely on algorithms without clear safeguards. In short, use technology as a tool but prioritise human commonsense.
The article’s advertising industry example shows that even when technology improves efficiency, a company’s people and judgment can be its most important asset. For investors, that means evaluating not just a firm’s technology but also its talent, culture and how it integrates human decision‑making with automation.
Yes. The article cites research suggesting the brain works hard during sleep and that sleep is widely thought to be foundational for decision‑making and memory. For everyday investors, giving yourself time—and a good night’s sleep—before making big financial decisions can improve judgment.
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