Strategic Management Society

• The lies from FTX founder Sam Bankman-Fried date back to the company’s very beginning, prosecutors say.
• In it, my colleagues and I found that even professional financial analysts fall for CEO lies – and that the best-respected analysts might be the most gullible.
• They predict how much a company will earn and suggest whether to buy or sell its stock.
• We also found that highly esteemed analysts fell for CEO lies more often than their lesser-known counterparts did.

Biased toward believing

• First, “all-star” analysts often gain a sense of overconfidence and entitlement as they rise in prestige.
• Second, these analysts tend to have closer relationships with CEOs, which studies show can increase the truth bias.
• Our research also underscores the importance of accountability in governance and the need for strong institutional systems to counter individual biases.

An AI ‘lie detector’?

• We validated the algorithm using fraudulent transcripts, retracted articles in medical journals and deceptive YouTube videos.
• It’s important to note that the tool doesn’t directly measure deception; it identifies language patterns associated with lying.
• But that future is closer than many might realize: Companies in fields such as investing, security and insurance are already starting to use it.

Big questions remain

• But while the technology offers undeniable advantages, such as early detection of threats or fraud, it could also usher in a perilous transparency culture.
• In such a world, thoughts and emotions could become subject to measurement and judgment, eroding the sanctuary of mental privacy.
• This study also raises ethical questions about using AI to measure psychological characteristics, particularly where privacy and consent are concerned.
• The decisions we make today – about ethics, oversight and responsible use – will set the course for years to come.

• "I expressed how my community had a lot of abandoned buildings, space that could be repurposed," he said.
• "I wrote how I want to become an acquisition analyst and learn to invest in my community."
• "I've always been interested in funding education and giving back to my community," said Baldwin-Henry, who is also in Honors College - Newark .
• First in his family to go to college , Baldwin-Henry grew up in the Weequahic section of Newark and graduated from University High School.