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New York Fed research warns of AI sycophancy and 'cognitive surrender'

Original: Beware the # AI sycophant and 'cognitive surrender' Research presented at a Federal Reserve Bank of New York conference

Research presented at a Federal Reserve Bank of New York conference warns that AI chatbots can make users more confident in wrong answers and suboptimal decisions, a dynamic described as 'cognitive surrender'. Commenters in banking circles say the findings pose particular challenges for bank culture and governance, where deference to confident machine output could undermine judgment and accountability.

Why now: Growing concern in banking and policy circles about overreliance on AI assistants as adoption accelerates.

Federal Reserve Bank of New YorkAI chatbots

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