Finance
AI boosts confidence even in wrong answers, warning on \'cognitive surrender\' spreads in banks
A study found that using AI chatbots can increase confidence in answers, while actual judgment accuracy depends heavily on the quality of information provided. The research, presented at an annual governance and culture reform conference of the New York Fed, drew attention in finance as a new risk to organizational culture and internal controls as AI spreads. Experiments showed participants often followed AI answers regardless of their validity and that response style could shift investment choices.
