Begin with the outside view

When judging a new AI workflow, the vivid demo is only one observation. Start with the base rate: how often does the current process succeed, how long does it take, and what is the failure cost? Then ask what evidence makes this case different. Record an estimate as a range, not a slogan. Separate what you know from assumptions and what you would need to observe to change course.

Three plots show a prior belief, evidence likelihood, and updated posterior belief.
Figure. Evidence updates a prior belief into a posterior. This mathematical sketch is one part of the decision process, not a complete decision rule. Source: Rbb · Prior, likelihood, posterior · CC BY-SA 3.0.

Ray Dalio’s published principles argue for explicit expected-value thinking, weighing information against delay, and seeking credible disagreement. Those are one practitioner’s framework, not a universal proof that a particular choice is right.

Make the first bet reversible

Choose a small experiment with a stop rule. For an agent workflow, hold out tasks the team has not tuned against. Compare validated success, human review time and cost with a simple baseline. Decide in advance what result justifies expansion, revision or abandonment. Protect against low-probability but unacceptable outcomes with limits on authority and spending.

Worked example

A team expects an agent to save 30 minutes per case. A two-week pilot measures 14 minutes saved on average, but review adds 20 minutes for high-risk cases. The decision becomes “use it for low-risk drafts,” not “deploy everywhere.”

Review the process, not only the outcome

A decision journal records date, alternatives, probabilities, assumptions and stop conditions. Later, compare outcomes with those expectations. A good decision can lose once; a weak process can get lucky. Over many decisions, calibration matters more than the story told after the fact.

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