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One application area of long-term memory (LTM) capabilities with increasing traction is personal AI companions and assistants. With the ability to retain and contextualize past interactions and adapt to user preferences, personal AI companions and assistants promise a profound shift in how we interact with AI and are on track to become indispensable in personal and professional settings. However, this advancement introduces new challenges and vulnerabilities that require careful consideration regarding the deployment and widespread use of these systems. The goal of this paper is to explore the broader implications of building and deploying personal AI applications with LTM capabilities using a holistic evaluation approach. This will be done in three ways: 1) reviewing the technological underpinnings of LTM in Large Language Models, 2) surveying current personal AI companions and assistants, and 3) analyzing critical considerations and implications of deploying and using these applications.

This thesis investigates the psychological factors that influence belief in AI predictions, comparing them to belief in astrology- and personality-based predictions, and examines the "personal validation effect" in the context of AI, particularly with Large Language Models (LLMs). Through two interconnected studies involving 238 participants, the first study explores how cognitive style, paranormal beliefs, AI attitudes, and personality traits impact perceptions of the validity, reliability, usefulness, and personalization of predictions from different sources. The study finds a positive correlation between belief in AI predictions and belief in astrology- and personality-based predictions, highlighting a "rational superstition" phenomenon where belief is more influenced by mental heuristics and intuition than by critical evaluation. Interestingly, cognitive style did not significantly affect belief in predictions, while paranormal beliefs, positive AI attitudes, and conscientiousness played significant roles. The second study reveals that positive predictions are perceived as significantly more valid, personalized, reliable, and useful than negative ones, emphasizing the strong influence of prediction valence on user perceptions. This underscores the need for AI systems to manage user expectations and foster balanced trust. The thesis concludes with a proposal for future research on how belief in AI predictions influences actual user behavior, exploring it through the lens of self-fulfilling prophecy. Overall, this thesis enhances understanding of human-AI interaction and provides insights for developing AI systems across various applications., Comment: Master's thesis

This study investigates psychological factors influencing belief in AI predictions about personal behavior, comparing it to belief in astrology and personality-based predictions. Through an experiment with 238 participants, we examined how cognitive style, paranormal beliefs, AI attitudes, personality traits, and other factors affect perceived validity, reliability, usefulness, and personalization of predictions from different sources. Our findings reveal that belief in AI predictions is positively correlated with belief in predictions based on astrology and personality psychology. Notably, paranormal beliefs and positive AI attitudes significantly increased perceived validity, reliability, usefulness, and personalization of AI predictions. Conscientiousness was negatively correlated with belief in predictions across all sources, and interest in the prediction topic increased believability across predictions. Surprisingly, cognitive style did not significantly influence belief in predictions. These results highlight the "rational superstition" phenomenon in AI, where belief is driven more by mental heuristics and intuition than critical evaluation. We discuss implications for designing AI systems and communication strategies that foster appropriate trust and skepticism. This research contributes to our understanding of the psychology of human-AI interaction and offers insights for the design and deployment of AI systems.