Scientists at HSE University have found that current AI models, including ChatGPT and Claude, tend to overestimate the rationality of their human opponents—whether first-year undergraduate students or experienced scientists—in strategic thinking games, such as the Keynesian beauty contest. While these models attempt to predict human behaviour, they often end up playing 'too smart' and losing because they assume a higher level of logic in people than is actually present. The study has been published in the Journal of Economic Behavior & Organization.
LLMs don’t know much about any people other than authors and fictional characters. Well, until quite recently at least: The next model will know the most intimate thoughts of millions of AI-obsessed humans.