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Start-Up, Scale-Up by Lloyds Bank Academy
Making better AI decisions
Know when AI can help - and when human judgement and expertise is needed.
Introduction to 'Making better AI decisions'
AI can be a powerful tool, but it’s important to know when to use it and when to rely on your own judgement, experience or other sources of information. So, how do you know when to use it and when not to?
In this lesson, you'll learn how to make informed decisions about AI by understanding what it does well and when human advice and expertise is more appropriate.
Want to start your AI learning with a look at how it works and what it can do? Then head over to our ‘What is AI?’ lesson.
What you'll learn
- What to think about before you ask AI for help.
- When and how AI can help – and when it can’t.
- How to avoid becoming overly dependent on AI recommendations.
- Why you’re still responsible for your AI-supported decisions.
How long it takes
8 minutes
Before you ask AI for help
Chapter 1
How long it takes
1 minute
Why AI isn't always the answer
AI is a tool that we can use. But it’s not a replacement for human thinking. It can help you find information, generate ideas, and work through problems, but it doesn't understand the world in the same way people do.
Think of it like the satnav in your car. Satnavs can suggest routes, spot traffic and help you get where you're going. But you wouldn't just drive into a flooded road, through a ‘road closed’ sign or go the wrong way down a one-way street just because the satnav told you to.
AI is similar. It can help you find a route to an answer, but you're still the driver. You need to use your own judgement and be prepared to question its suggestions.
AI is a tool that we can use. But it’s not a replacement for human thinking. It can help you find information, generate ideas, and work through problems, but it doesn't understand the world in the same way people do.
Think of it like the satnav in your car.
Satnavs can suggest routes, spot traffic and help you get where you're going.
But you wouldn't just drive into a flooded road, through a ‘road closed’ sign or go the wrong way down a one-way street just because the satnav told you to.
AI is similar. It can help you find a route to an answer, but you're still the driver. You need to use your own judgement and be prepared to question its suggestions.
AI’s strengths and limitations
To help get more out of AI, let’s think about what it can do – and what it can’t.
AI can:
- Gather information from multiple sources.
- Make suggestions and compare alternatives.
- Explain complex topics so they're easy to understand.
- Generate ideas you hadn’t considered.
- Summarise large amounts of information.
AI can't:
- Understand your personal circumstances fully.
- Know your values and priorities.
- Replace expert advice.
- Always provide accurate or current information.
- Take responsibility for outcomes.
Want to learn how to work out whether you can trust a particular AI answer?
Our ‘Checking AI’ lesson can help.
Your relationship with AI
Chapter 2
How long it takes
2 minutes
Useful roles that AI can play
AI can be helpful as:
A research assistant
An ideas-sharing partner
An options explorer
Let's take a look at each.
AI as a research assistant
Whether you’re planning a holiday, preparing for an interview or thinking about moving home, AI can do some of the legwork. One of its strengths is the ability to gather information from many different sources and present them in a way that you can understand and use.
Ask AI to:
- Explain something in simple terms.
- Summarise long or complex articles or documents.
- Create timelines, checklists or how-to guides to make data easier to read.
Want to learn how to write prompts that help AI give you the information you need?
Check out our ‘Using AI prompts’ lesson.
AI as an ideas-sharing partner
AI can be useful when generating possibilities, rather than giving a single answer.
Ask AI to:
- Build on an idea you already have.
- Highlight options you may have overlooked.
- Explore different approaches to a problem or task.
- Generate ‘what if?’ scenarios.
Remember
AI can help you plan, identify and explore ideas, but it’s not the one making the final decision – that’s you.
AI as an options explorer
Planning a trip, buying a new phone, exploring career options – the everyday choices we make can be about trade-offs. AI can help you work through these – weighing up alternatives and working out what’s most important to you.
For example:
Choosing holiday accommodation
Cost vs comfort
Picking the right savings account
Access vs returns
Buying a new phone
Features vs ease of use
AI won’t make those decisions for you, but it can help you understand the implications of each choice.
Avoiding AI dependency
Chapter 3
How long it takes
3 minutes
How dependent is ‘too dependent’?
AI can be a useful assistant, but it's important not to become so reliant on it that you stop thinking, learning, or making decisions for yourself.
Ask yourself: “Am I relying on AI because it's easier, or because it's genuinely helping?”
Relying too heavily on AI can make it easier to:
- Accept answers without questioning them.
- Overlook mistakes.
- Miss opportunities to develop your own skills and knowledge.
It can also be a problem if the AI provides inaccurate information or isn't available when you need it.
How to spot when you’re becoming too dependent on AI
AI works best when it supports your thinking, not when it replaces it. So, what does that look like?
Here are two examples.
The birthday party
Helpful use of AI might include:
- Asking AI to suggest ideas for a birthday party, then choosing the ideas you like best.
Over-reliance on AI might include:
- Letting AI decide every aspect of the party without considering your budget or the needs/preferences of your guests.
The sleepless nights
Helpful use of AI might include:
- Asking AI for tips on improving your sleep routine, then choosing the suggestions that fit your schedule and circumstances.
Over-reliance on AI might include:
- Treating every AI suggestion as expert advice and changing your habits without considering whether the recommendations are right for you.
Good habits to reduce dependency
So, what can you do to become less dependent on AI? Here are some good habits that may help you.
These include:
Stop
Pause before you reach for AI, or before you use the answer it gives you.
Think
Consider the benefits vs the risks of using AI for this task.
Ask
It’s good practice to check with others – and to ask yourself a few key questions.
Let’s explore each of these.
Stop
When AI is always available, it's easy to use it out of habit rather than because you really need it. A quick pause can help you decide whether AI is the right tool for the task. It also gives you time to consider whether you could complete the task yourself, or whether you need to review the AI's output more carefully before acting on it.
This looks like:
- Trying to solve simple problems yourself first.
- Taking a moment to define what you need, before you open an AI tool.
- Thinking carefully about AI's answers rather than accepting them straight away.
- Using AI as a support tool, not your automatic starting point.
When AI is always available, it's easy to use it out of habit rather than because you really need it. A quick pause can help you decide whether AI is the right tool for the task.
It also gives you time to consider whether you could complete the task yourself, or whether you need to review the AI's output more carefully before acting on it.
This looks like:
- Trying to solve simple problems yourself first.
- Taking a moment to define what you need, before you open an AI tool.
- Thinking carefully about AI's answers rather than accepting them straight away.
- Using AI as a support tool, not your automatic starting point.
Think
Not every task is a good fit for AI. Before using it, think about whether AI can genuinely help with what you need. Can you see any limitations that might cause problems? Thinking it through can help you make more informed decisions.
What to consider:
- How accurate do you need this to be?
- Does this question or task need human skills – like judgement, experience or personal knowledge?
- Are there likely to be any privacy, security or confidentiality concerns?
- Is AI adding value or just replacing your own thinking?
Not every task is a good fit for AI. Before using it, think about whether AI can genuinely help with what you need.
Can you see any limitations that might cause problems?
Thinking it through can help you make more informed decisions.
What to consider:
- How accurate do you need this to be?
- Does this question or task need human skills – like judgement, experience or personal knowledge?
- Are there likely to be any privacy, security or confidentiality concerns?
- Is AI adding value or just replacing your own thinking?
Ask
So, you’ve stopped and thought, and decided that AI is right for this task. It shouldn’t be your only source of advice or information, though. Talking to others, checking reliable sources and questioning AI’s answers can help you spot mistakes, challenge assumptions and build confidence in your own decision-making.
Ideas to try:
- Getting other viewpoints – from friends, family and/and experts.
- Comparing AI outputs with trusted sources.
- Reflecting on whether AI’s suggestions match your own thoughts, values and priorities.
- Being willing to challenge and question AI-generated content.
So, you’ve stopped and thought, and decided that AI is right for this task. It shouldn’t be your only source of advice or information, though.
Talking to others, checking reliable sources and questioning AI’s answers can help you spot mistakes, challenge assumptions and build confidence in your own decision-making.
Ideas to try:
- Getting other viewpoints – from friends, family and/and experts.
- Comparing AI outputs with trusted sources.
- Reflecting on whether AI’s suggestions match your own thoughts, values and priorities.
- Being willing to challenge and question AI-generated content.
Remember
Avoiding AI dependency doesn’t have to mean you stop using it completely.
It’s more about making conscious decisions around whether, how and how much you use it.
Your decisions, your choice
Chapter 4
How long it takes
2 minutes
Getting value from AI
In this lesson, you've seen that AI can be helpful, but it’s down to you to decide if, when and how you use it.
Getting value from AI can mean using it to support your thinking, research and decision-making, while staying actively involved:
Challenging its answers
Checking elsewhere
Considering alternatives
Remember
Sometimes, the best decision is not to use AI at all.
If you already have the knowledge, expertise or information you need, AI may add little value.
Choosing when AI adds value
Consider these everyday tasks and decide: would you use AI, human expertise or both? Then select each task to reveal our recommendations.
-
AI can help you research destinations, suggest itineraries, create packing lists, recommend activities, and summarise information about places you want to visit.
For important details such as flight times, visa requirements, travel advice, accommodation availability and prices, always check official and up-to-date sources before booking.
-
You should never use AI to diagnose medical conditions or decide on treatment.
Always discuss any medical concerns with a qualified health professional. They’ll be able to assess your individual circumstances and explore options that are right for you.
What AI may be able to help you with includes:
- Understanding symptoms.
- Explaining medical terms.
- Suggesting questions to ask your doctor or healthcare professional.
-
AI can help generate ideas, overcome writer's block, suggest wording, and help you create a message that matches the tone you want.
But for a message that’s personal and heartfelt, your own words may be more meaningful. AI can help with inspiration, but the final message will often be better if you add your own experiences and personality.
Taking ownership
No matter how useful AI is, the final decision remains yours.
AI doesn’t understand your situation completely. It can’t predict every outcome, and it doesn’t have to live with the consequences of anything you do based on its suggestions.
That's why it's important to:
- Think about whether and how you plan to use AI.
- Know what checks you’ll make.
- Understand that you’re the one who’s responsible for using any AI-generated content.
Our ‘Using AI responsibly’ lesson answers questions like ‘when do I need to tell people I’ve used AI?’ and ‘do copyright rules apply to AI-generated content?’
Want to learn more?
Artificial Intelligence
Lloyds Bank Academy is committed to providing information in a way that is accessible and useful for our users. This information, however, is not in any way intended to amount to authority or advice on which reliance should be placed. You should seek professional advice as appropriate and required. Any sites, products or services named in this module are just examples of what's available. Lloyds Bank does not endorse the services they provide. The information in this module was last updated on 24th August 2026.