Are critical thinking frameworks eroding as institutional investors rely more on artificial intelligence? How can we protect our decision-making skills and defend against AI sycophancy? In this latest episode of the Improving Alpha podcast, we welcome Cheryl Einhorn, Founder and CEO of Decisive, and Author of The Human Edge. Tune in below.
Michael Oliver Weinberg, co-founder, Improving Alpha Podcast Series
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Are investors handing over too much power to artificial intelligence and thereby sacrificing critical decision-making skills in an effort to get easy answers? What happens to cognitive biases or thinking mistakes when we treat AI queries like a transaction rather than a conversation?
The Improving Alpha podcast welcomes Cheryl Einhorn, Founder and CEO of Decisive, Author, and Columbia University Professor, to discuss her perspectives around AI and how quickly critical thinking frameworks can erode in young leaders who get addicted to AI. Cheryl goes on to detail what you should be doing today to protect your decision-making skills for the future.
Key takeaways:
- What exactly are cognitive biases and why do they significantly impact your clarity in making decisions and properly seeing the world?
- What does Cheryl mean by using the term “AI sycophancy,” and how can institutional investors defend against it?
- In a heightened time of AI where decision-making needs to be faster and data is coming from multiple angles, why does the discipline pause hold so much value?
- As AI continues to become better at market predictions, how does the portfolio manager or investment team take away critical meanings from the AI output to guarantee they’re solving for the right challenge?
- Humans can find it difficult to receive feedback. Given this perspective, could AI be leveraged to strength-test an idea without risking harm to human relationships and connections?
- How can you protect your cognitive load while developing skills that leverage AI as a teacher?
- and more.
Cheryl Einhorn is the founder and CEO of Decisive, a decision sciences company that trains people and teams in complex problem-solving and decision-making skills using the AREA Method. AREA is an acronym for an evidence-based decision-making system that uniquely controls for and counters cognitive bias to expand knowledge while improving judgment. Cheryl developed AREA during her two decades as an award-winning investigative journalist writing for publications ranging from The New York Times to Foreign Policy Magazine, Barron’s, and Harvard Business Review.
Cheryl is a longtime educator, teaching at Columbia University and at Cornell University’s SC Johnson School of Business and Cornell Tech. She is the author of three books: Problem Solved, A Powerful System for Making Complex Decisions with Confidence and Conviction, about personal and professional decision-making, and Investing In Financial Research, A Decision-Making System for Better Results about financial and investment decisions. Her new book about Problem Solver Profiles and the psychology of decision-making, Problem Solver, Maximizing Your Strengths To Make Better Decisions, recently won book awards for best psychology book and creative nonfiction book of 2024. Cheryl is also a contributing editor to several books by Harvard Business Review.
About Our Host: Michael Oliver Weinberg, CFA
For three decades Michael has invested directly at the security level and indirectly as an asset allocator in traditional and alternative asset classes. Most recently he was a Managing Director, Head of Alternative Alpha, on the Investment Committee, and a board member at APG, a Dutch pension provider. Previously he was the Chief Investment Officer at MOV37 and Protege Partners. Michael is also an Adjunct Professor of Economics and Finance at Columbia Business School, where he teaches Institutional Investing, an advanced MBA course that he created.
Michael is a published author, having written for The New York Times, international investment books, and other publications. Michael has been interviewed by the Wall Street Journal, Financial Times, CNBC, Bloomberg and Reuters. He is a frequent panelist, moderator and lecturer for investment banks, institutional and family office organizations, and business schools.
The information covered and posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of Vidrio Financial, and/or our host, Michael Oliver Weinberg. The Content has been made available for informational and educational purposes only. The Content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.