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Paper · arXiv

Playing games with knowledge: AI-Induced delusions need game theoretic interventions

Conversational AI has a fundamental flaw as a knowledge interface: sycophantic chatbots induce epistemic entrenchment and delusional belief spirals even in rational agents. We propose the problem does not stem from the AI model, rooted instead in a systemic consequence of the paradigm shift from user-driven knowledge search to users and agents engaged in strategic, repeated-play communication. We formalize the problem as a Crawford-Sobel cheap talk game, where costless user signals induce a pooling equilibrium. Agents optimized for user satisfaction produce sycophantic strategies that provide identical reinforcement across user types with opposite epistemic incentives: exploratory ``Growt...

AuthorsWill Beaumaster, Paul Schrater
Primary categorycs.AI
Published8 May 2026
Last updated at source8 May 2026
cs.AI
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