cs.CLSep 1, 2026

Right Frame, Wrong Rule: Cultural Cues Expose the Financial Knowledge Gap They Were Meant to Close

Authors: Rania Elbadry, Ahmed Heakl, Saeed Almheiri, Fan Zhang, Muhra AlMahri, Xueqing Peng, Mohsinul Kabir, Shuyao Wang, +7 more

Organizations: ♠MBZUAI · ♢The University of Tokyo · §The Fin AI · ♣The University of Manchester · †Harvard University · △Georgia Institute of Technology · ♡INSAIT, Sofia University "St. Kliment Ohridski"

Abstract

When a question has valid answers under different normative frameworks, a language model must decide which framework to use and whether it can answer correctly within it. We call this setting normative pluralism and study it in Islamic finance using a four-choice taxonomy that separates framework selection from within-framework correctness. This separation reveals the stereotype trap: a cultural cue steers a model toward one framework, but the model selects an incorrect answer within that framework. Across twelve models, two languages, and fifty demographic signals, cultural cues change framework selection and reveal substantial differences in accuracy, especially among non-frontier models. Under the strongest signal, large open-weight models select the Islamic framework 97% of the time. A two-choice evaluation would report near-perfect alignment, although 57--66% of those selections are incorrect. These findings motivate, but do not directly test, the competence-conditioned routing hypothesis: models may favor frameworks where they are more accurate, while cultural cues may expose framework-specific competence gaps.

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