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This paper develops a formal theory of cognitive debt, where using AI as a substitute for first-principles reasoning builds up unverified obligations that lead to systemic fragility and a cognitive Minsky moment, showing that decentralized equilibrium over-adopts substitutive AI without accounting for externalities.
The article argues that reliance on AI without foundational understanding creates 'cognitive debt', a hidden cost that may lead to professionals who cannot interrogate or evaluate AI outputs in high-stakes fields like law, medicine, and finance.