An analysis of AI-driven choice overload and an investment thesis for the 'Decision Integrity' economy
Abstract
This report re-evaluates psychologist Barry Schwartz's "Paradox of Choice" in the context of the modern AI revolution. We argue that the paradox, originally a theory of consumer dissatisfaction, has been amplified by technological innovation into a systemic psychological crisis. We analyse two primary AI modalities: 1) Curation AI (recommender systems), which, while promising to solve overload, instead creates an "illusion of control" and "passive acceptance," and 2) Generative AI, which introduces an "infinite canvas" of choice, leading to new phenomena such as "expertise fixation" in professionals and the "Braess's paradox" of information ecosystems. We present empirical evidence that this new, totalising choice architecture is decreasing quality of life by measurably diminishing cognitive function (via "cognitive offloading"), eroding personal agency (via "agency transfere
