Brian Crombie Radio Hour - Epi 1645 - AI, Investing & the Bubble Risk: Correlation vs Causation with Sam Sivarajan

On this episode of The Brian Crombie Hour, host Brian Crombie is joined by behavioral economist and author Sam Sivarajan for a deep dive into AI, investing, and one of the most important — and most misunderstood — ideas in decision-making: the difference between correlation and causation. The conversation explores why financial markets repeatedly fall into bubble cycles, and why even sophisticated investors can be misled by narratives that feel true but don’t hold up under scrutiny. With artificial intelligence driving today’s market excitement, the discussion asks whether similar patterns are emerging once again. Together, they break down how emotion, momentum, and fear of missing out can distort judgment, using examples from AI stocks and previous hype cycles across technology and consumer markets. The episode also examines broader questions about artificial intelligence, including whether current valuations reflect reality, how businesses are actually integrating AI, and what risks emerge when human judgment is increasingly outsourced to machines — a concept described as “cognitive surrender.” At its core, the conversation challenges listeners to reconsider how decisions are made in markets and in life: are we responding to real cause-and-effect relationships, or simply believing compelling stories reinforced by crowd behaviour?