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ResearchOfficialPreprintarXiv Computation and Language

LLMs and Prediction Markets Reveal Systematic Bias in News-Based Strategic Forecasts

A new arXiv preprint demonstrates that large language models (LLMs), when paired with prediction market data, can quantify how information sources bias strategic predictions. Analyzing 111 Ukraine-related prediction markets, the study finds that English news context systematically biases territorial forecasts, with predictions favoring territorial capture being incorrect 64–72% of the time. The analysis suggests that this bias originates mainly from the text sources rather than the LLMs themselves, and persists across multiple model architectures.

Why it matters: The findings highlight that AI systems relying on real-world text sources can inherit and propagate significant biases, which could impact strategic decision-making in high-stakes domains.

Full story at: arXiv Computation and Language