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Researchers warn 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 finds that AI chatbots can make users more confident in wrong answers and push them toward suboptimal decisions, a phenomenon described as 'cognitive surrender'. The findings highlight risks for bank culture and governance, where overreliance on AI advice could quietly erode independent judgment among staff.

Why now: New central-bank conference research raises fresh concerns about overtrusting AI assistants in high-stakes financial decision-making.

Federal Reserve Bank of New YorkAI chatbots

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• Beware the # AI sycophant and 'cognitive surrender' Research presented at a Federal Reserve Bank of New York conference shows that AI chatbots can make users more confident in wrong answers and suboptimal decisions, posing unique challenges to the bank culture and governance.… · AlexJimenez@mas.to · 3

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