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Chapter 4 - Decision-Making

The Stakes of a Choice

from Part I - AI and Consumer Psychology

Published online by Cambridge University Press:  05 June 2026

Michael Clarke
Affiliation:
New York University
Manuel Garcia-Garcia
Affiliation:
Ipsos
Michael Joffe
Affiliation:
New York University
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Summary

Decision-making is analyzed through the lens of neuroscience, psychology, and AI. Beginning with the famous case of Phineas Gage, the chapter illustrates how emotion, memory, and social context shape human choice. It reviews dual-process theories (fast versus slow thinking) alongside biases like default effects and personalized persuasion. AI’s role is presented as both collaborator and influencer: augmenting human judgment, modeling cognitive processes, and personalizing experiences, but also carrying risks of bias and manipulation. The authors argue that the most effective systems integrate human agency and AI prediction in a balanced “human-in-the-loop” model.

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