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Mental Models in the Age of AI

  • 3 days ago
  • 7 min read

Thinking with AI

Silhouette of a head with a glowing neural network. Text: Mental Models in the Age of AI. Vibrant sunset background.
Mental Models in the Age of AI

So, the anthem stands by now:

AI won’t replace you…but someone using AI will.

Including someone that thinks with AI.

One counter-question would be:

"Why do I need to think when I can just ChatGPT it?"

And...that’s kinda the problem:

You don’t just naturally delegate your thinking to AI.


Mythbuster: ChatGPT is no Sage

See, the thing is...

ChatGPT is not—and will not—be the answer to all our problems.

It’s no guru...but a tool, like any other Generative AI.

Meaning, “Just ChatGPT it” is as vague as the thought process behind it.

And ChatGPT—or any AI for that matter—is only as good as the brains behind it. And not just data brains...but human brains, too.

Enter Mental Models

Mental Models—A subpremise of this article.

Combined with AI, Mental Models can make a user formidable in the next decade or so.

What are Mental Models?

Thinking Shortcuts” in short.

If you’ve heard of concepts like:

 First-Principles Thinking (My Favorite) 

And so on,

Those are some Mental Models.

Thinking frameworks that help you problem-solve scenarios.

Now that definition’s out of the way, let’s add AI to the mix.

MENTAL MODELS FOR THE AGE OF AI

So, as initially stated, ChatGPT alone isn’t enough—

We need some thinking to back it up and some mental models up our sleeves, considering how fast the world is evolving in tech.

Some mental models for starters:

  1. First Principles Thinking

  2. Bayesian Updating

  3. Second-Order Thinking

  4. Critical Thinking

  5. Systems Thinking

  6. Inversion Thinking

  7. Bias to Action

  8. Root-Cause Analysis

  9. Latticework of Models

  10. Mental Model Plasticity

  11. Cynefin Framework

  12. Probabilistic Thinking

  13. Critical Thinking


Note

An overarching theme in this article is that AI is an assistant.

That’s already obvious off the bat, but the more we dive in, the more we’ll uncover that AI further brainstorms beyond our natural limits.

And at the end of the day, we bear the consequences of our actions, not ChatGPT.

1. First Principles Thinking

First-Principles Thinking is breaking down problems into their fundamental, undeniable components and solving them from scratch.

The art of problem deconstruction and building up solutions from notwithstanding pillars of facts.

Quote on black background: "What do we know to be true and how can we build up from there?" by First Principles. Ornate floral corners.
First Principles Thinking

Why is this important? It helps to have these irrefutable pillars of truth to lean on when all else fails, especially during ambiguity.

So in the case of AI, sure—You can use it to solve a problem...or use it upon these pillars for amplified results.

Or if you’re not sure where to start, prompt it.

Text on economic strategy in Utopia; highlights fundamentals and identifies economic issues. Neutral background with green arrow.
AI & First Principles Thinking (1)
Text on a beige background titled "AI & First Principles Thinking." It outlines steps to rebuild society, including essentials, trust, capital, productivity, and narrative.
AI & First Principles Thinking (2) 
Text image titled "AI & First Principles Thinking" details a four-step sequence on economics. Footer reads "Carerra's Chronicles by Carerra Titus Kariuki."
AI & First Principles Thinking (3)

2. Bayesian Updating

Bayesian Updating is revising one’s beliefs using new data.

Why is this important? Data is changing everyday, and so is AI—Both evolving at rates faster than the human mind can fathom.

And our thinking prowess is only as good as the data we hold.

Portrait of Pierre-Simon Laplace in formal attire, alongside his quote on evidence and strangeness. Black background with text.
Pierre-Simon Laplace on Bayesian Thinking

So with Bayesian Thinking (or Updating, as you may), the more unlikely something is, the more compelling the evidence must be to update your belief.

This factually proves one conclusion: The ignorant and the close-minded shall be left behind if they don’t adjust their thinking.

Ornate black background with floral corners features a quote: "If your thinking is rigid, you risk being obsolete." Text by Carerra's Chronicles.
If your thinking is rigid, you risk being obsolete.

3. Second-Order Thinking

2-o-Thinking (as I call it) considers the effects of our actions to the second order (or more.)

Meaning, “If this happens, that happens. And if that happens, what happens?”

White text on a black background reads: “If I do X, Y happens. And if Y happens, what happens?” It's titled "Second-Order Thinking" by Carerra Titus Kariuki.
Second-Order Thinking

Why is this important? AI can perform scenario analysis on different events. Meaning, if you can’t hypothesize an outcome in second-order, AI can map out potential outcomes, further boosting your analysis.

One caveat, though, is that AI generates outcomes from historical data, so while data provides context, it reduces (but doesn’t entirely eliminate) second-order ambiguity.

Meaning...the only way out is through. You must take action regardless. (See #7 - Bias to Action - below.)

Action Kills Ambiguity
Action Kills Ambiguity

Swipe left for more.


4. Critical Thinking

As the title suggests, this implies the art of thinking critically using whatever information is at our disposal to solve a problem logically.

And not everything that glitters is gold—Don’t take everything at face value.

Decorative black sign with white text: "Not everything that glitters is gold. Don’t take everything at face value." Ornate border and logo right.
Not everything that glitters is gold.

Case example

When writing this article, I asked ChatGPT for “Sample mental models in the age of AI,” and it also recommended “R&D as Search,” whatever that is. 

Inexperienced-me would’ve considered it, but critical-me, already aware of mental models, had to look it up to confirm if indeed it was a thing.

It wasn’t.

Why is this important? AI is a tool and an assistant for that matter...but don’t take its output as gospel. Critically assess if:

  1. The answer makes sense, and

  2. The answer is helpful.

Intricate floral borders frame the text "You bear the results of your actions, not Copilot." on a dark background, evoking a reflective mood.
You bear the results of your actions, not Copilot.

5. Systems Thinking

Systems Thinking involves analyzing an entire system, its constituent parts, and their cause-and-effect relationships.

A child gazes at the horizon through a circular window. Text: "A System," detailing various systems like business and life. Monochrome.
A System
Diagram titled "Life as a System" with sections on Mental, Social, Physical, Financial, and Time aspects. Desk and plant in background.
Life as a System

Why is this important? AI is second brain in cultivating your system. It can help analyze a system, create new ones, or identify blind spots in existing ones.

Swipe left for more.


6. Inversion Thinking

Inversion Thinking involves thinking the opposite of the intended goal, then doing its inverse.

In practice, it involves seeing what guarantees failure, then doing everything in your power to avoid it.

Inspirational quote on a black background with decorative floral corners: "If you don't know what to do right, Then at least don't do what you know is wrong."
Inversion Thinking

Charlie Munger was a huge proponent of Inversion Thinking, using it in much of his investment and life theses.

An older man in a suit speaks in an office; quote on the side reads, "All I want to know is where I'm going to die so I never go there."
Charlie Munger on Inversion Thinking

Why is this important? Sometimes the best thinking comes before AI.

Sometimes the best accelerator is not running towards something...but from something, and AI can’t do that for you.

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7. Bias to Action

Bias to Action is a natural tendency to act, favoring action over inaction. It’s more of a behavior than a model...but exemplary for this age of accelerated information access.

Why is this important? Bias to action is a trait independent of AI—A non-causal relationship. In other words, the presence of AI shouldn’t stop someone from taking action regardless.

You don't need the full picture to get started, but you need to start if you want to get the full picture. (Or at least achieve what you needed the picture for.)

One could brainstorm their way to planet Pluto, but action will always be the catalyst. People feel safe researching...but it’s the outliers that win by taking action.

AI is not needed here—Common sense and Execution are.

8. Latticework of Models & Mental Models Plasticity

2-in-1.

The Latticework of Models is of a network of interconnected models from various disciplines. (Disciplines including Technology, Engineering, and more.)

Three glowing pillars labeled Physics & Math, Economics & Systems. Text reads: "Better Decision Making." Dark background with diagrams.
A Latticework of Models (Drawn by Google Gemini)

On the other hand, Mental Models Plasticity (MMP) is the ability to switch mental models interchangeably depending on the scenario.

Plasticity refers to the quality of something that can be easily shaped or molded.

Just like Neuroplasticity—The brain’s ability to change through the reorganization of its neural networks.

Diagram titled "Mental Models Plasticity" shows interconnections between concepts: Second-Order Thinking, Inversion, First Principles, Occam's Razor, Bayesian Updating.
Mental Models Plasticity

So when you combine MMP & the Latticework of Models, you get:

Diagram titled Mental Models Plasticity + A Latticework of Models. Shows interconnected concepts in green and black text boxes, like Economics and Bayesian Updating.
MMP + A Latticework of Models

So, by definition:

Decorative black banner with white text: "Mental Models Plasticity + A Latticework of Models = A Mental Models Guru." Ornate corners, "Carerra's Chronicles" below.
The Equation for Mental Models Mastery

Why is this important? No one model can solve an entire problem on its own.

Another thing: (Generative) AI can generate a latticework any time, depending on the problem to be solved. It can also drill down to the First Principles of each model and map interrelationships that are not readily identifiable to the human eye.

Additionally, both models provide a "playground" to test your mental models arsenal, just like you would try new tricks on a pitch. You get a good ground to test your models, hypotheses, and combinations across different scenarios, honing your decision-making muscle over time.

9. Cynefin Framework

Cynefin categorizes problems into five domains: Clear, Complicated, Complex, Chaotic, and Confusion.

Cynefin Framework diagram with circles labeled Clear, Complicated, Complex, Chaotic, and Confusion. Used for classifying problem complexity.
The Cynefin Framework

Why is this important? Some problems are not so straightforward for AI to solve, plus the skill of identifying a problem’s complexity helps even before introducing AI to the mix.

Furthermore, AI isn’t needed to solve all problems. (Ref. Bias to Action above.) Cynefin classifies these problems—You judge whether or not AI is needed.

10. Probabilistic Thinking

Probabilistic Thinking estimates the likelihood of different outcomes.

Quote "What are the chances of this happening?" on a black background with ornate floral corners. Text by Probabilistic Thinking and Carerra's Chronicles.
Probabilistic Thinking

Why is this important? PT is a mental muscle to be built that comes with experience and arithmetic, specifically Probability.

You don’t have to be a Math expert; Rather, you’re better off developing the ability of foresight.

AI can also map out possible scenarios...and to some extent, predict the chances of each happening (at least from the data it’s trained on.) And again, the human bears the brunt of the consequences.

11. Critical Thinking

Pretty straightforward.

Critical Thinking is analyzing the available information to form sound judgments and make informed, logical decisions.

Why is this important? Even AI itself admits so.

AI article with disclaimers and warnings about possible mistakes. Text includes cautionary notes for ChatGPT, Gemini, Copilot, Claude.
AI Disclaimers

🌟 THE BOTTOM LINE

AI has infinite memory—We love that already.

But humans still possess the edge in judgment, wisdom, and discernment. (Or at least...so long as we realize that.)

Mental models can help us become great thinkers and, to some extent, prolific problem solvers.

Legends of the past have shaped cities, moved economies, and changed the course of history through their use of mental models.

And so can we.

And with the onset of AI, it will be no different.

Take nothing else from this essay but this: AI is but a tool—A means to an end.

And those who harness it and know when to use it will rule the world.

Glowing brain with a quote on intelligence against an AI-themed background. Sunset colors and network patterns; tagline "Carerra's Chronicles."
Harness AI into your Thinking.

The best is yet to come.

Peace,

.

.

.

~T.K.K

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