The Science of Conviction: How Emotion Shapes Financial Decision-Making

Article

Emotions often drive financial decisions more than we think. Professor David Tuckett's research reveals how conviction narratives shape risk perception and decision-making. His findings challenge traditional views of rationality, suggesting emotions play a crucial role in interpreting data and making high-stakes choices.

Feb 25, 2025

David Tuckett, Professor, University College London

Tags: AI and Technology (including Fintech)

The Science of Conviction: How Emotion Shapes Financial Decision-Making

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Conviction Narrative Theory suggests that emotions influence financial decision-making more than previously understood.
Financial professionals use mental shortcuts, or conviction narratives, to interpret complex data during uncertain times.
The research shows that emotional cues in financial language can predict market trends and shifts in sentiment.
AI-driven models may soon help detect hidden risks by analyzing how emotional language shapes market perceptions.