
Dr. Bryan Foltice Behavioral Finance Podcast
Automation Bias: The Brain’s Trust in Technology
Question, Comment? Send it Here! Automation Bias in Investing: When to Trust (and Challenge) AI | Bryan Foltice Behavioral Finance Podcast In this episode of the Bryan Foltice Behavioral Finance Podcast, we explore automation bias—the tendency to use technology as a mental shortcut in place of vigilant information seeking and processing—using examples like GPS routes and copying ChatGPT answers without thinking. We discuss early research from the 1990s on pilots and automated aircraft, outlining two error types: omission errors (failing to act when automation misses a problem) and commission errors (following a bad automated recommendation despite contradictory information). We connect automation bias to Type 1 vs. Type 2 thinking, arguing that as tasks become more complex and consequences rise—especially in investing, retirement, tax, and estate planning—we need a middle ground: use AI’s benefits while actively verifying, prompting, and challenging outputs. We close by previewing next episode’s topic: algorithm aversion. 00:00 Podcast Welcome 00:26 Automation Bias Defined 02:19 Origins in Aviation 03:47 Omission vs Commission 05:39 Why We Love Automation 08:04 GPS Jog Gone Wrong 11:35 Type Two Thinking Trigger 13:07 Finding the AI Middle Ground 16:08 Prompting and Staying Critical 17:57 Algorithm Aversion Teaser 19:37 Wrap Up and Next Episode Support the show Bryan Foltice Behavioral Finance Website - www.bryanfoltice.com Money Strong Program - www.moneystrong.net Instagram - www.instagram.com/bryanfoltice Linkedin - https://www.linkedin.com/in/bryan-foltice-2578a116/ Disclaimer: www.bryanfoltice.com/cv

