The Ghost in the Machine: How Human Cognitive Biases Shape the Alignment, Context, and Tuning of Large Language Models

 The entire discipline of guiding LLM outputs can be reframed through the lens of "choice architecture," a concept from behavioral economics introduced by Richard Thaler and Cass Sunstein. Choice architecture is the design of the environment in which people make decisions; it posits that the way choices are presented—the "architecture"—inevitably influences the outcome, whether intentionally or not. A choice architect, therefore, is anyone who organizes the context in which people make decisions. In the realm of LLMs, prompt engineers and the designers of Retrieval-Augmented Generation (RAG) systems are the new choice architects. They are not merely instructing a machine; they are designing a decision-making environment for an artificial intelligence. This section argues that this process is profoundly shaped by the same heuristics and biases that affect human decision-making, turning context engineering into a practice of creating flawed choice architectures.