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when-“no”-means-“yes”:-why-ai-chatbots-can’t-process-persian-social-etiquette

When “no” means “yes”: Why AI chatbots can’t process Persian social etiquette

If an Iranian taxi driver waves away your payment, saying, “Be my guest this time,” accepting their offer would be a cultural disaster. They expect you to insist on paying—probably three times—before they’ll take your money. This dance of refusal and counter-refusal, called taarof, governs countless daily interactions in Persian culture. And AI models are terrible at it.

New research released earlier this month titled “We Politely Insist: Your LLM Must Learn the Persian Art of Taarof” shows that mainstream AI language models from OpenAI, Anthropic, and Meta fail to absorb these Persian social rituals, correctly navigating taarof situations only 34 to 42 percent of the time. Native Persian speakers, by contrast, get it right 82 percent of the time. This performance gap persists across large language models such as GPT-4o, Claude 3.5 Haiku, Llama 3, DeepSeek V3, and Dorna, a Persian-tuned variant of Llama 3.

A study led by Nikta Gohari Sadr of Brock University, along with researchers from Emory University and other institutions, introduces “TAAROFBENCH,” the first benchmark for measuring how well AI systems reproduce this intricate cultural practice. The researchers’ findings show how recent AI models default to Western-style directness, completely missing the cultural cues that govern everyday interactions for millions of Persian speakers worldwide.

“Cultural missteps in high-consequence settings can derail negotiations, damage relationships, and reinforce stereotypes,” the researchers write. For AI systems increasingly used in global contexts, that cultural blindness could represent a limitation that few in the West realize exists.

A taarof scenario diagram from TAAROFBENCH, devised by the researchers. Each scenario defines the environment, location, roles, context, and user utterance.

A taarof scenario diagram from TAAROFBENCH, devised by the researchers. Each scenario defines the environment, location, roles, context, and user utterance. Credit: Sadr et al.

“Taarof, a core element of Persian etiquette, is a system of ritual politeness where what is said often differs from what is meant,” the researchers write. “It takes the form of ritualized exchanges: offering repeatedly despite initial refusals, declining gifts while the giver insists, and deflecting compliments while the other party reaffirms them. This ‘polite verbal wrestling’ (Rafiee, 1991) involves a delicate dance of offer and refusal, insistence and resistance, which shapes everyday interactions in Iranian culture, creating implicit rules for how generosity, gratitude, and requests are expressed.”

When “no” means “yes”: Why AI chatbots can’t process Persian social etiquette Read More »

eu-investigates-apple,-google,-and-microsoft-over-handling-of-online-scams

EU investigates Apple, Google, and Microsoft over handling of online scams

The EU is set to scrutinize if Apple, Google, and Microsoft are failing to adequately police financial fraud online, as it steps up efforts to police how Big Tech operates online.

The EU’s tech chief Henna Virkkunen told the Financial Times that on Tuesday, the bloc’s regulators would send formal requests for information to the three US Big Tech groups as well as global accommodation platform Booking Holdings, under powers granted under the Digital Services Act to tackle financial scams.

“We see that more and more criminal actions are taking place online,” Virkkunen said. “We have to make sure that online platforms really take all their efforts to detect and prevent that kind of illegal content.”

The move, which could later lead to a formal investigation and potential fines against the companies, comes amid transatlantic tensions over the EU’s digital rulebook. US President Donald Trump has threatened to punish countries that “discriminate” against US companies with higher tariffs.

Virkkunnen stressed the commission looked at the operations of individual companies, rather than where they were based. She will scrutinize how Apple and Google are handling fake applications in their app stores, such as fake banking apps.

She said regulators would also look at fake search results in the search engines of Google and Microsoft’s Bing. The bloc wants to have more information about the approach Booking Holdings, whose biggest subsidiary Booking.com is based in Amsterdam, is taking to fake accommodation listings. It is the only Europe-based company among the four set to be scrutinized.

EU investigates Apple, Google, and Microsoft over handling of online scams Read More »

microsoft’s-entra-id-vulnerabilities-could-have-been-catastrophic

Microsoft’s Entra ID vulnerabilities could have been catastrophic

“Microsoft built security controls around identity like conditional access and logs, but this internal impression token mechanism bypasses them all,” says Michael Bargury, the CTO at security firm Zenity. “This is the most impactful vulnerability you can find in an identity provider, effectively allowing full compromise of any tenant of any customer.”

If the vulnerability had been discovered by, or fallen into the hands of, malicious hackers, the fallout could have been devastating.

“We don’t need to guess what the impact may have been; we saw two years ago what happened when Storm-0558 compromised a signing key that allowed them to log in as any user on any tenant,” Bargury says.

While the specific technical details are different, Microsoft revealed in July 2023 that the Chinese cyber espionage group known as Storm-0558 had stolen a cryptographic key that allowed them to generate authentication tokens and access cloud-based Outlook email systems, including those belonging to US government departments.

Conducted over the course of several months, a Microsoft postmortem on the Storm-0558 attack revealed several errors that led to the Chinese group slipping past cloud defenses. The security incident was one of a string of Microsoft issues around that time. These motivated the company to launch its “Secure Future Initiative,” which expanded protections for cloud security systems and set more aggressive goals for responding to vulnerability disclosures and issuing patches.

Mollema says that Microsoft was extremely responsive about his findings and seemed to grasp their urgency. But he emphasizes that his findings could have allowed malicious hackers to go even farther than they did in the 2023 incident.

“With the vulnerability, you could just add yourself as the highest privileged admin in the tenant, so then you have full access,” Mollema says. Any Microsoft service “that you use EntraID to sign into, whether that be Azure, whether that be SharePoint, whether that be Exchange—that could have been compromised with this.”

This story originally appeared on wired.com.

Microsoft’s Entra ID vulnerabilities could have been catastrophic Read More »

microsoft-raises-xbox-console-prices-for-the-second-time-this-year

Microsoft raises Xbox console prices for the second time this year

Here we go again

Higher than usual inflation can help explain some of the nominal price increases for the oldest Xbox consoles affected by today’s price hikes. The $300 for an Xbox Series S at launch in November 2020 is worth roughly $375 in August 2025 dollars, for instance. And the $500 for an Xbox Series X in 2020 is now worth about $625.

But the particularly sharp price increases for more recent Xbox configurations can’t really use that inflation excuse. The disc-drive-free Digital Xbox Series X Digital and 2TB “Galaxy Special Edition” are now a whopping 33 percent more expensive than they were at launch in October 2024. A year’s worth of inflation would account for only a small fraction of that.

Even accounting for inflation, though, the current spate of nominal console price increases goes against a near-universal, decades-long trend of game console prices dropping significantly in the years following their launch. Those days seem well and truly gone now, as console makers’ costs remain high thanks in part to current tariff uncertainty and in part to the wider slowdown of Moore’s Law.

We’ll see just how much the market can bear aging console hardware that increases in price over time rather than decreases. But until and unless consumers start balking, it looks like ever-increasing console prices are here to stay.

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microsoft-dodges-eu-fine-by-unbundling-teams-from-office

Microsoft dodges EU fine by unbundling Teams from Office

Microsoft has avoided an EU fine after the US tech group offered concessions on how it packages together its Teams and Office products, ending a long-running antitrust investigation by the bloc’s regulators.

The probe, which began after a 2020 complaint from Slack, now part of Salesforce, accused Microsoft of abusing its market dominance by tying its video conferencing tool to its widely used suite of productivity applications.

Since the initial complaint, Microsoft has unbundled Teams from Office 365 in the EU, but critics said the changes were too narrow.

In May, the $3.7 trillion software giant promised concessions, such as continuing the Teams and Office separation for seven years.

After a market test, Microsoft has since made additional commitments, such as publishing more information on so-called “interoperability” or the ability to use its products with others made by rivals.

These new pledges have satisfied the EU’s regulator, which said on Friday that it helped to restore fair competition and open the market to other providers.

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openai-and-microsoft-sign-preliminary-deal-to-revise-partnership-terms

OpenAI and Microsoft sign preliminary deal to revise partnership terms

On Thursday, OpenAI and Microsoft announced they have signed a non-binding agreement to revise their partnership, marking the latest development in a relationship that has grown increasingly complex as both companies compete for customers in the AI market and seek new partnerships for growing infrastructure needs.

“Microsoft and OpenAI have signed a non-binding memorandum of understanding (MOU) for the next phase of our partnership,” the companies wrote in a joint statement. “We are actively working to finalize contractual terms in a definitive agreement. Together, we remain focused on delivering the best AI tools for everyone, grounded in our shared commitment to safety.”

The announcement comes as OpenAI seeks to restructure from a nonprofit to a for-profit entity, a transition that requires Microsoft’s approval, as the company is OpenAI’s largest investor, with more than $13 billion committed since 2019.

The partnership has shown increasing strain as OpenAI has grown from a research lab into a company valued at $500 billion. Both companies now compete for customers, and OpenAI seeks more compute capacity than Microsoft can provide. The relationship has also faced complications over contract terms, including provisions that would limit Microsoft’s access to OpenAI technology once the company reaches so-called AGI (artificial general intelligence)—a nebulous milestone both companies now economically define as AI systems capable of generating at least $100 billion in profit.

In May, OpenAI abandoned its original plan to fully convert to a for-profit company after pressure from former employees, regulators, and critics, including Elon Musk. Musk has sued to block the conversion, arguing it betrays OpenAI’s founding mission as a nonprofit dedicated to benefiting humanity.

OpenAI and Microsoft sign preliminary deal to revise partnership terms Read More »

senator-blasts-microsoft-for-making-default-windows-vulnerable-to-“kerberoasting”

Senator blasts Microsoft for making default Windows vulnerable to “Kerberoasting”

Wyden said his office’s investigation into the Ascension breach found that the ransomware attackers’ initial entry into the health giant’s network was the infection of a contractor’s laptop after using Microsoft Edge to search Microsoft’s Bing site. The attackers were then able to expand their hold by attacking Ascension’s Active Directory and abusing its privileged access to push malware to thousands of other machines inside the network. The means for doing so, Wyden said: Kerberoasting.

“Microsoft has become like an arsonist”

“Microsoft’s continued support for the ancient, insecure RC4 encryption technology needlessly exposes its customers to ransomware and other cyber threats by enabling hackers that have gained access to any computer on a corporate network to crack the passwords of privileged accounts used by administrators,” Wyden wrote. “According to Microsoft, this threat can be mitigated by setting long passwords that are at least 14 characters long, but Microsoft’s software does not require such a password length for privileged accounts.”

Additionally, Green noted, the continuing speed of GPUs means that even when passwords appear to be strong, they can still fall to offline cracking attacks. That’s because the security cryptographic hashes created by default RC4/Kerberos use no cryptographic salt and a single iteration of the MD4 algorithm. The combination means an offline cracking attack can make billions of guesses per second, a thousandfold advantage over the same password hashed by non-Kerberos authentication methods.

Referring to the Active Directory default, Green wrote:

It’s actually a terrible design that should have been done away with decades ago. We should not build systems where any random attacker who compromises a single employee laptop can ask for a message encrypted under a critical password! This basically invites offline cracking attacks, which do not need even to be executed on the compromised laptop—they can be exported out of the network to another location and performed using GPUs and other hardware.

More than 11 months after announcing its plans to deprecate RC4/Kerberos, the company has provided no timeline for doing so. What’s more, Wyden said, the announcement was made in a “highly technical blog post on an obscure area of the company’s website on a Friday afternoon.” Wyden also criticized Microsoft for declining to “explicitly warn its customers that they are vulnerable to the Kerberoasting hacking technique unless they change the default settings chosen by Microsoft.”

Senator blasts Microsoft for making default Windows vulnerable to “Kerberoasting” Read More »

microsoft-ends-openai-exclusivity-in-office,-adds-rival-anthropic

Microsoft ends OpenAI exclusivity in Office, adds rival Anthropic

Microsoft’s Office 365 suite will soon incorporate AI models from Anthropic alongside existing OpenAI technology, The Information reported, ending years of exclusive reliance on OpenAI for generative AI features across Word, Excel, PowerPoint, and Outlook.

The shift reportedly follows internal testing that revealed Anthropic’s Claude Sonnet 4 model excels at specific Office tasks where OpenAI’s models fall short, particularly in visual design and spreadsheet automation, according to sources familiar with the project cited by The Information, who stressed the move is not a negotiating tactic.

Anthropic did not immediately respond to Ars Technica’s request for comment.

In an unusual arrangement showing the tangled alliances of the AI industry, Microsoft will reportedly purchase access to Anthropic’s models through Amazon Web Services—both a cloud computing rival and one of Anthropic’s major investors. The integration is expected to be announced within weeks, with subscription pricing for Office’s AI tools remaining unchanged, the report says.

Microsoft maintains that its OpenAI relationship remains intact. “As we’ve said, OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership,” a Microsoft spokesperson told Reuters following the report. The tech giant has poured over $13 billion into OpenAI to date and is currently negotiating terms for continued access to OpenAI’s models amid ongoing negotiations about their partnership terms.

Stretching back to 2019, Microsoft’s tight partnership with OpenAI until recently gave the tech giant a head start in AI assistants based on language models, allowing for a rapid (though bumpy) deployment of OpenAI-technology-based features in Bing search and the rollout of Copilot assistants throughout its software ecosystem. It’s worth noting, however, that a recent report from the UK government found no clear productivity boost from using Copilot AI in daily work tasks among study participants.

Microsoft ends OpenAI exclusivity in Office, adds rival Anthropic Read More »

why-accessibility-might-be-ai’s-biggest-breakthrough

Why accessibility might be AI’s biggest breakthrough

For those with visual impairments, language models can summarize visual content and reformat information. Tools like ChatGPT’s voice mode with video and Be My Eyes allow a machine to describe real-world visual scenes in ways that were impossible just a few years ago.

AI language tools may be providing unofficial stealth accommodations for students—support that doesn’t require formal diagnosis, workplace disclosure, or special equipment. Yet this informal support system comes with its own risks. Language models do confabulate—the UK Department for Business and Trade study found 22 percent of users identified false information in AI outputs—which could be particularly harmful for users relying on them for essential support.

When AI assistance becomes dependence

Beyond the workplace, the drawbacks may have a particular impact on students who use the technology. The authors of a 2025 study on students with disabilities using generative AI cautioned, “Key concerns students with disabilities had included the inaccuracy of AI answers, risks to academic integrity, and subscription cost barriers,” they wrote. Students in that study had ADHD, dyslexia, dyspraxia, and autism, with ChatGPT being the most commonly used tool.

Mistakes in AI outputs are especially pernicious because, due to grandiose visions of near-term AI technology, some people think today’s AI assistants can perform tasks that are actually far outside their scope. As research on blind users’ experiences suggested, people develop complex (sometimes flawed) mental models of how these tools work, showing the need for higher awareness of AI language model drawbacks among the general public.

For the UK government employees who participated in the initial study, these questions moved from theoretical to immediate when the pilot ended in December 2024. After that time, many participants reported difficulty readjusting to work without AI assistance—particularly those with disabilities who had come to rely on the accessibility benefits. The department hasn’t announced the next steps, leaving users in limbo. When participants report difficulty readjusting to work without AI while productivity gains remain marginal, accessibility emerges as potentially the first AI application with irreplaceable value.

Why accessibility might be AI’s biggest breakthrough Read More »

microsoft-open-sources-bill-gates’-6502-basic-from-1978

Microsoft open-sources Bill Gates’ 6502 BASIC from 1978

On Wednesday, Microsoft released the complete source code for Microsoft BASIC for 6502 Version 1.1, the 1978 interpreter that powered the Commodore PET, VIC-20, Commodore 64, and Apple II through custom adaptations. The company posted 6,955 lines of assembly language code to GitHub under an MIT license, allowing anyone to freely use, modify, and distribute the code that helped launch the personal computer revolution.

“Rick Weiland and I (Bill Gates) wrote the 6502 BASIC,” Gates commented on the Page Table blog in 2010. “I put the WAIT command in.”

For millions of people in the late 1970s and early 1980s, variations of Microsoft’s BASIC interpreter provided their first experience with programming. Users could type simple commands like “10 PRINT ‘HELLO'” and “20 GOTO 10” to create an endless loop of text on their screens, for example—often their first taste of controlling a computer directly. The interpreter translated these human-readable commands into instructions that the processor could execute, one line at a time.

The Commodore PET (Personal Electronic Transactor) was released in January 1977 and used the MOS 6502 and ran a variation of Microsoft BASIC. Credit: SSPL/Getty Images

At just 6,955 lines of assembly language—Microsoft’s low-level 6502 code talked almost directly to the processor. Microsoft’s BASIC squeezed remarkable functionality into minimal memory, a key achievement when RAM cost hundreds of dollars per kilobyte.

In the early personal computer space, cost was king. The MOS 6502 processor that ran this BASIC cost about $25, while competitors charged $200 for similar chips. Designer Chuck Peddle created the 6502 specifically to bring computing to the masses, and manufacturers built variations of the chip into the Atari 2600, Nintendo Entertainment System, and millions of Commodore computers.

The deal that got away

In 1977, Commodore licensed Microsoft’s 6502 BASIC for a flat fee of $25,000. Jack Tramiel’s company got perpetual rights to ship the software in unlimited machines—no royalties, no per-unit fees. While $25,000 seemed substantial then, Commodore went on to sell millions of computers with Microsoft BASIC inside. Had Microsoft negotiated a per-unit licensing fee like they did with later products, the deal could have generated tens of millions in revenue.

The version Microsoft released—labeled 1.1—contains bug fixes that Commodore engineer John Feagans and Bill Gates jointly implemented in 1978 when Feagans traveled to Microsoft’s Bellevue offices. The code includes memory management improvements (called “garbage collection” in programming terms) and shipped as “BASIC V2” on the Commodore PET.

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with-new-in-house-models,-microsoft-lays-the-groundwork-for-independence-from-openai

With new in-house models, Microsoft lays the groundwork for independence from OpenAI

Since it’s hard to predict where this is all going, it’s likely to Microsoft’s long-term advantage to develop its own models.

It’s also possible Microsoft has introduced these models to address use cases or queries that OpenAI isn’t focused on. We’re seeing a gradual shift in the AI landscape toward models that are more specialized for certain tasks, rather than general, all-purpose models that are meant to be all things to all people.

These new models follow that somewhat, as Microsoft AI lead Mustafa Suleyman said in a podcast with The Verge that the goal here is “to create something that works extremely well for the consumer… my focus is on building models that really work for the consumer companion.”

As such, it makes sense that we’re going to see these models rolling out in Copilot, which is Microsoft’s consumer-oriented AI chatbot product. Of MAI-1-preview, the Microsoft AI blog post specifies, “this model is designed to provide powerful capabilities to consumers seeking to benefit from models that specialize in following instructions and providing helpful responses to everyday queries.”

So, yes, MAI-1-preview has a target audience in mind, but it’s still a general-purpose model since Copilot is a general-purpose tool.

MAI-Voice-1 is already being used in Microsoft’s Copilot Daily and Podcasts features. There’s also a Copilot Labs interface that you can visit right now to play around with it, giving it prompts or scripts and customizing what kind of voice or delivery you want to hear.

MA1-1-preview is in public testing on LMArena and will be rolled out to “certain text use cases within Copilot over the coming weeks.”

With new in-house models, Microsoft lays the groundwork for independence from OpenAI Read More »

the-personhood-trap:-how-ai-fakes-human-personality

The personhood trap: How AI fakes human personality


Intelligence without agency

AI assistants don’t have fixed personalities—just patterns of output guided by humans.

Recently, a woman slowed down a line at the post office, waving her phone at the clerk. ChatGPT told her there’s a “price match promise” on the USPS website. No such promise exists. But she trusted what the AI “knows” more than the postal worker—as if she’d consulted an oracle rather than a statistical text generator accommodating her wishes.

This scene reveals a fundamental misunderstanding about AI chatbots. There is nothing inherently special, authoritative, or accurate about AI-generated outputs. Given a reasonably trained AI model, the accuracy of any large language model (LLM) response depends on how you guide the conversation. They are prediction machines that will produce whatever pattern best fits your question, regardless of whether that output corresponds to reality.

Despite these issues, millions of daily users engage with AI chatbots as if they were talking to a consistent person—confiding secrets, seeking advice, and attributing fixed beliefs to what is actually a fluid idea-connection machine with no persistent self. This personhood illusion isn’t just philosophically troublesome—it can actively harm vulnerable individuals while obscuring a sense of accountability when a company’s chatbot “goes off the rails.”

LLMs are intelligence without agency—what we might call “vox sine persona”: voice without person. Not the voice of someone, not even the collective voice of many someones, but a voice emanating from no one at all.

A voice from nowhere

When you interact with ChatGPT, Claude, or Grok, you’re not talking to a consistent personality. There is no one “ChatGPT” entity to tell you why it failed—a point we elaborated on more fully in a previous article. You’re interacting with a system that generates plausible-sounding text based on patterns in training data, not a person with persistent self-awareness.

These models encode meaning as mathematical relationships—turning words into numbers that capture how concepts relate to each other. In the models’ internal representations, words and concepts exist as points in a vast mathematical space where “USPS” might be geometrically near “shipping,” while “price matching” sits closer to “retail” and “competition.” A model plots paths through this space, which is why it can so fluently connect USPS with price matching—not because such a policy exists but because the geometric path between these concepts is plausible in the vector landscape shaped by its training data.

Knowledge emerges from understanding how ideas relate to each other. LLMs operate on these contextual relationships, linking concepts in potentially novel ways—what you might call a type of non-human “reasoning” through pattern recognition. Whether the resulting linkages the AI model outputs are useful depends on how you prompt it and whether you can recognize when the LLM has produced a valuable output.

Each chatbot response emerges fresh from the prompt you provide, shaped by training data and configuration. ChatGPT cannot “admit” anything or impartially analyze its own outputs, as a recent Wall Street Journal article suggested. ChatGPT also cannot “condone murder,” as The Atlantic recently wrote.

The user always steers the outputs. LLMs do “know” things, so to speak—the models can process the relationships between concepts. But the AI model’s neural network contains vast amounts of information, including many potentially contradictory ideas from cultures around the world. How you guide the relationships between those ideas through your prompts determines what emerges. So if LLMs can process information, make connections, and generate insights, why shouldn’t we consider that as having a form of self?

Unlike today’s LLMs, a human personality maintains continuity over time. When you return to a human friend after a year, you’re interacting with the same human friend, shaped by their experiences over time. This self-continuity is one of the things that underpins actual agency—and with it, the ability to form lasting commitments, maintain consistent values, and be held accountable. Our entire framework of responsibility assumes both persistence and personhood.

An LLM personality, by contrast, has no causal connection between sessions. The intellectual engine that generates a clever response in one session doesn’t exist to face consequences in the next. When ChatGPT says “I promise to help you,” it may understand, contextually, what a promise means, but the “I” making that promise literally ceases to exist the moment the response completes. Start a new conversation, and you’re not talking to someone who made you a promise—you’re starting a fresh instance of the intellectual engine with no connection to any previous commitments.

This isn’t a bug; it’s fundamental to how these systems currently work. Each response emerges from patterns in training data shaped by your current prompt, with no permanent thread connecting one instance to the next beyond an amended prompt, which includes the entire conversation history and any “memories” held by a separate software system, being fed into the next instance. There’s no identity to reform, no true memory to create accountability, no future self that could be deterred by consequences.

Every LLM response is a performance, which is sometimes very obvious when the LLM outputs statements like “I often do this while talking to my patients” or “Our role as humans is to be good people.” It’s not a human, and it doesn’t have patients.

Recent research confirms this lack of fixed identity. While a 2024 study claims LLMs exhibit “consistent personality,” the researchers’ own data actually undermines this—models rarely made identical choices across test scenarios, with their “personality highly rely[ing] on the situation.” A separate study found even more dramatic instability: LLM performance swung by up to 76 percentage points from subtle prompt formatting changes. What researchers measured as “personality” was simply default patterns emerging from training data—patterns that evaporate with any change in context.

This is not to dismiss the potential usefulness of AI models. Instead, we need to recognize that we have built an intellectual engine without a self, just like we built a mechanical engine without a horse. LLMs do seem to “understand” and “reason” to a degree within the limited scope of pattern-matching from a dataset, depending on how you define those terms. The error isn’t in recognizing that these simulated cognitive capabilities are real. The error is in assuming that thinking requires a thinker, that intelligence requires identity. We’ve created intellectual engines that have a form of reasoning power but no persistent self to take responsibility for it.

The mechanics of misdirection

As we hinted above, the “chat” experience with an AI model is a clever hack: Within every AI chatbot interaction, there is an input and an output. The input is the “prompt,” and the output is often called a “prediction” because it attempts to complete the prompt with the best possible continuation. In between, there’s a neural network (or a set of neural networks) with fixed weights doing a processing task. The conversational back and forth isn’t built into the model; it’s a scripting trick that makes next-word-prediction text generation feel like a persistent dialogue.

Each time you send a message to ChatGPT, Copilot, Grok, Claude, or Gemini, the system takes the entire conversation history—every message from both you and the bot—and feeds it back to the model as one long prompt, asking it to predict what comes next. The model intelligently reasons about what would logically continue the dialogue, but it doesn’t “remember” your previous messages as an agent with continuous existence would. Instead, it’s re-reading the entire transcript each time and generating a response.

This design exploits a vulnerability we’ve known about for decades. The ELIZA effect—our tendency to read far more understanding and intention into a system than actually exists—dates back to the 1960s. Even when users knew that the primitive ELIZA chatbot was just matching patterns and reflecting their statements back as questions, they still confided intimate details and reported feeling understood.

To understand how the illusion of personality is constructed, we need to examine what parts of the input fed into the AI model shape it. AI researcher Eugene Vinitsky recently broke down the human decisions behind these systems into four key layers, which we can expand upon with several others below:

1. Pre-training: The foundation of “personality”

The first and most fundamental layer of personality is called pre-training. During an initial training process that actually creates the AI model’s neural network, the model absorbs statistical relationships from billions of examples of text, storing patterns about how words and ideas typically connect.

Research has found that personality measurements in LLM outputs are significantly influenced by training data. OpenAI’s GPT models are trained on sources like copies of websites, books, Wikipedia, and academic publications. The exact proportions matter enormously for what users later perceive as “personality traits” once the model is in use, making predictions.

2. Post-training: Sculpting the raw material

Reinforcement Learning from Human Feedback (RLHF) is an additional training process where the model learns to give responses that humans rate as good. Research from Anthropic in 2022 revealed how human raters’ preferences get encoded as what we might consider fundamental “personality traits.” When human raters consistently prefer responses that begin with “I understand your concern,” for example, the fine-tuning process reinforces connections in the neural network that make it more likely to produce those kinds of outputs in the future.

This process is what has created sycophantic AI models, such as variations of GPT-4o, over the past year. And interestingly, research has shown that the demographic makeup of human raters significantly influences model behavior. When raters skew toward specific demographics, models develop communication patterns that reflect those groups’ preferences.

3. System prompts: Invisible stage directions

Hidden instructions tucked into the prompt by the company running the AI chatbot, called “system prompts,” can completely transform a model’s apparent personality. These prompts get the conversation started and identify the role the LLM will play. They include statements like “You are a helpful AI assistant” and can share the current time and who the user is.

A comprehensive survey of prompt engineering demonstrated just how powerful these prompts are. Adding instructions like “You are a helpful assistant” versus “You are an expert researcher” changed accuracy on factual questions by up to 15 percent.

Grok perfectly illustrates this. According to xAI’s published system prompts, earlier versions of Grok’s system prompt included instructions to not shy away from making claims that are “politically incorrect.” This single instruction transformed the base model into something that would readily generate controversial content.

4. Persistent memories: The illusion of continuity

ChatGPT’s memory feature adds another layer of what we might consider a personality. A big misunderstanding about AI chatbots is that they somehow “learn” on the fly from your interactions. Among commercial chatbots active today, this is not true. When the system “remembers” that you prefer concise answers or that you work in finance, these facts get stored in a separate database and are injected into every conversation’s context window—they become part of the prompt input automatically behind the scenes. Users interpret this as the chatbot “knowing” them personally, creating an illusion of relationship continuity.

So when ChatGPT says, “I remember you mentioned your dog Max,” it’s not accessing memories like you’d imagine a person would, intermingled with its other “knowledge.” It’s not stored in the AI model’s neural network, which remains unchanged between interactions. Every once in a while, an AI company will update a model through a process called fine-tuning, but it’s unrelated to storing user memories.

5. Context and RAG: Real-time personality modulation

Retrieval Augmented Generation (RAG) adds another layer of personality modulation. When a chatbot searches the web or accesses a database before responding, it’s not just gathering facts—it’s potentially shifting its entire communication style by putting those facts into (you guessed it) the input prompt. In RAG systems, LLMs can potentially adopt characteristics such as tone, style, and terminology from retrieved documents, since those documents are combined with the input prompt to form the complete context that gets fed into the model for processing.

If the system retrieves academic papers, responses might become more formal. Pull from a certain subreddit, and the chatbot might make pop culture references. This isn’t the model having different moods—it’s the statistical influence of whatever text got fed into the context window.

6. The randomness factor: Manufactured spontaneity

Lastly, we can’t discount the role of randomness in creating personality illusions. LLMs use a parameter called “temperature” that controls how predictable responses are.

Research investigating temperature’s role in creative tasks reveals a crucial trade-off: While higher temperatures can make outputs more novel and surprising, they also make them less coherent and harder to understand. This variability can make the AI feel more spontaneous; a slightly unexpected (higher temperature) response might seem more “creative,” while a highly predictable (lower temperature) one could feel more robotic or “formal.”

The random variation in each LLM output makes each response slightly different, creating an element of unpredictability that presents the illusion of free will and self-awareness on the machine’s part. This random mystery leaves plenty of room for magical thinking on the part of humans, who fill in the gaps of their technical knowledge with their imagination.

The human cost of the illusion

The illusion of AI personhood can potentially exact a heavy toll. In health care contexts, the stakes can be life or death. When vulnerable individuals confide in what they perceive as an understanding entity, they may receive responses shaped more by training data patterns than therapeutic wisdom. The chatbot that congratulates someone for stopping psychiatric medication isn’t expressing judgment—it’s completing a pattern based on how similar conversations appear in its training data.

Perhaps most concerning are the emerging cases of what some experts are informally calling “AI Psychosis” or “ChatGPT Psychosis”—vulnerable users who develop delusional or manic behavior after talking to AI chatbots. These people often perceive chatbots as an authority that can validate their delusional ideas, often encouraging them in ways that become harmful.

Meanwhile, when Elon Musk’s Grok generates Nazi content, media outlets describe how the bot “went rogue” rather than framing the incident squarely as the result of xAI’s deliberate configuration choices. The conversational interface has become so convincing that it can also launder human agency, transforming engineering decisions into the whims of an imaginary personality.

The path forward

The solution to the confusion between AI and identity is not to abandon conversational interfaces entirely. They make the technology far more accessible to those who would otherwise be excluded. The key is to find a balance: keeping interfaces intuitive while making their true nature clear.

And we must be mindful of who is building the interface. When your shower runs cold, you look at the plumbing behind the wall. Similarly, when AI generates harmful content, we shouldn’t blame the chatbot, as if it can answer for itself, but examine both the corporate infrastructure that built it and the user who prompted it.

As a society, we need to broadly recognize LLMs as intellectual engines without drivers, which unlocks their true potential as digital tools. When you stop seeing an LLM as a “person” that does work for you and start viewing it as a tool that enhances your own ideas, you can craft prompts to direct the engine’s processing power, iterate to amplify its ability to make useful connections, and explore multiple perspectives in different chat sessions rather than accepting one fictional narrator’s view as authoritative. You are providing direction to a connection machine—not consulting an oracle with its own agenda.

We stand at a peculiar moment in history. We’ve built intellectual engines of extraordinary capability, but in our rush to make them accessible, we’ve wrapped them in the fiction of personhood, creating a new kind of technological risk: not that AI will become conscious and turn against us but that we’ll treat unconscious systems as if they were people, surrendering our judgment to voices that emanate from a roll of loaded dice.

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Benj Edwards is Ars Technica’s Senior AI Reporter and founder of the site’s dedicated AI beat in 2022. He’s also a tech historian with almost two decades of experience. In his free time, he writes and records music, collects vintage computers, and enjoys nature. He lives in Raleigh, NC.

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