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Incentives, Investor Behavior, and AI with Devin Shanthikumar | Treussard Talks (E17)

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In this episode, I sit down with Devin Shanthikumar—faculty at the UC Irvine Merage School of Business and Associate Dean for Undergraduate Studies—to talk about how real-world market outcomes are shaped.

We start with Devin’s path from UC Berkeley (engineering and computer science) to a PhD in finance at Stanford, and how the early-2000s dot-com boom and bust shaped the questions that became the foundation of their research.

From there, we dig into what happens when smart people make painful investing mistakes—not because they lack intelligence, but because they don’t understand the incentives embedded in the financial system.

We also zoom out to what AI means for the future of work and learning, and what that might imply for the next generation.

You’ll hear us cover:

  • Why Devin’s research became “behavioral finance” through a simple question: what mistakes are people making, and why?
  • What individual investors often miss about sell-side analyst incentives.
  • How analysts balance multiple audiences at once: institutional clients, individual investors, and the companies they cover (and the role that access plays).
  • The “two tongues” idea: why analysts’ recommendations and earnings forecasts can reflect different constraints and objectives.
  • What changes when investing commentary moves into more disintermediated, online spaces, including the risk of echo chambers.
  • Devin’s working paper on financial blogs, and why engagement in comment threads can sometimes push people toward more moderate views.
  • What Devin is studying now about AI’s impact on analyst research, including why analyst work is a powerful setting to study AI (clear, measurable outputs and outcomes).
  • Early evidence on how AI can improve analyst performance: accuracy, speed of updating, and handling complex filings.
  • A surprising finding: rather than forcing consensus, AI may enable analysts to be bolder, especially where human judgment matters most.
  • How Devin approaches teaching and curriculum in the AI era, including the importance of foundational knowledge, critical thinking, and building real human community.
  • A candid concern about the AI age: fewer entry-level roles, and what that means for the development ladder over time.

    • Disclaimer: The content of “Treussard Talks” is for informational and educational purposes only and should not be considered financial advice. The views expressed are those of the host and guests and do not necessarily reflect the opinions of Treussard Capital Management or its affiliates. Listeners should consult with their own financial advisor before making any investment decisions. For full disclosures, visit treussard.com.

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      Treussard Talks.By Jonathan Treussard, Ph.D.