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[ARTICLE · art-28937] src=arxiv.org ↗ pub= topic=artificial-intelligence verified=true sentiment=· neutral

Cognitive Debt: AI as Intellectual Leverage and the Dynamics of Systemic Fragility

Researchers developed a formal theory of cognitive debt, where using AI as a substitute for first-principles cognition accumulates unverified reasoning obligations. The model shows that rational agents incur cognitive debt due to deferred costs and short-term productivity gains, leading to a 'cognitive Minsky moment' where subjective risk falls while systemic fragility rises. Decentralized equilibrium over-adopts substitutive AI relative to the social optimum due to systemic risk and externalities.

read1 min views1 publishedJun 16, 2026

arXiv:2606.15078v1 Announce Type: new Abstract: We develop a formal theory of cognitive debt: the stock of unverified reasoning obligations that accumulates when individuals use AI as a substitute rather than a complement for first-principles cognition. The model features two state variables per agent, cognitive capital and cognitive debt, and a multiplicative production technology in which cognitive capital functions as collateral that determines the return to AI adoption. We establish six propositions. Rational agents incur positive cognitive debt because the costs are deferred, partially external, and masked by short-run productivity gains. Tranquil periods lower subjective risk assessments, raise AI substitution intensity, and compound leverage, generating a cognitive Minsky moment in which subjective risk falls while true systemic fragility rises. Expected crisis losses are convex in aggregate leverage. Post-crisis, output-target pressure can produce a false-correction loop in which agents patch AI failures with more AI. The decentralised equilibrium over-adopts substitutive AI relative to the social optimum because of systemic risk, cognitive public goods, and arms-race externalities. In a two-type heterogeneous-agent economy, high-cognitive-capital agents adopt AI more intensively and may eventually erode their unaided cognitive capital below that of initially lower-skilled agents.

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