<p>What happens when AI systems begin to shape not only our decisions but our sense of self? This article introduces the concept of <i>the institutionalized self</i>—a psychological formation that emerges through recursive interactions with algorithmic feedback in predictive institutional environments. As artificial intelligence (AI) becomes integrated into systems governing education, employment, and healthcare, individuals are increasingly evaluated and categorized by opaque, anticipatory classification systems. These interactions influence not only external opportunities but also internal self-understanding. Drawing on symbolic interactionism, self-determination theory, and technological mediation, the paper proposes a three-stage model of self-formation: institutional perception, metacognitive response, and self-reconfiguration. The model accounts for how institutional classifications affect narrative identity, autonomy, and perceived efficacy. Testable hypotheses are offered to support empirical research, and ethical implications are explored concerning the design of AI systems that shape personal meaning making. The institutionalized self reframes the role of psychology in an era where identity is no longer solely self-authored, but increasingly co-constructed with predictive institutions.</p>