Doorman fallacy
The doorman fallacy is a category error in which a complex human role is reduced to a function, leading to the assumption that it can be replaced with a cost-effective automated substitute without loss of value, with decision-makers failing to understand the indirect, intangible, non-visible value they provide.[1]
The concept is closely related to ideas in behavioral economics and signaling theory, particularly the distinction between observable tasks and latent value creation.[2]
Origin
The term "doorman fallacy" was coined and popularized by Rory Sutherland in his 2019 book Alchemy. The Surprising Power of Ideas That Don’t Make Sense.[3]
The term "doorman" refers to the role of a hotel doorman that mistakenly assumed solely for opening doors. The hotel replaces the doorman with an automated door system as a cost-saving measure. However, they fail to realize the indirect functions like:
- Guest recognition and assistance
- Providing security and surveillance
- Status signaling and brand perception
Sutherland argues that such roles often less visible create value that exceeds their direct cost, meaning removal can reduce long-term profitability despite lowering operational expenditure.[3][4]
Use in AI
Recent discussions have extended the concept of the doorman fallacy to generative AI's replacement of white-collar and customer service roles.
In 2025, the Commonwealth Bank of Australia laid 45 customer service staff off, replacing them with an automated AI voice bot. The bank reversed its decision amidst pressure from a workers' union, admitting it: "did not adequately consider all relevant business considerations and this error meant the roles were not redundant".[5]
See also
References
- ^ Lipnickas, Gediminas (3 November 2025). "The 'doorman fallacy': why careless adoption of AI backfires so easily". The Conversation. Retrieved 20 June 2026.
- ^ "The Doorman. The Magic Starts Here. Charles Leon". Charles Leon. 2019-07-21. Retrieved 2026-07-04.
- ^ a b Sutherland, Rory (2019). Alchemy : the surprising power of ideas that don't make sense. London. ISBN 978-0-7535-5137-0. OCLC 1091689287.
{{cite book}}: CS1 maint: location missing publisher (link) - ^ "Rory Sutherland's doorman fallacy". MFP Wealth Management. Retrieved 2026-06-24.
- ^ Subin, Samantha (2025-10-22). "AI is already taking white-collar jobs. Economists warn there's 'much more in the tank'". CNBC. Retrieved 2026-06-24.
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