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[TEASER]  
 
 

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[MUSIC PLAYS UNDER DIALOGUE] 
 
 

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NICOLE IMMORLICA: So honestly, when generative&nbsp;
AI came out, I had a bit of a moment, a like&nbsp;&nbsp;

00:00:05.760 --> 00:00:12.160
crisis of confidence, so to speak, in the value&nbsp;
of theory in my own work. And I decided to dive&nbsp;&nbsp;

00:00:12.160 --> 00:00:17.760
into a data-driven project, which was not&nbsp;
my background at all. As a complete newbie,&nbsp;&nbsp;

00:00:17.760 --> 00:00:23.640
I was quite shocked by what I found, which is&nbsp;
probably common knowledge among experts: data is&nbsp;&nbsp;

00:00:23.640 --> 00:00:30.240
very messy and very noisy, and it's very hard to&nbsp;
get any signal out of it. Theory is an essential&nbsp;&nbsp;

00:00:30.240 --> 00:00:35.080
counterpart to any data-driven research.&nbsp;
It provides a guiding light. But even more&nbsp;&nbsp;

00:00:35.080 --> 00:00:40.960
importantly, theory allows us to illuminate things&nbsp;
that have not even happened. So with models,&nbsp;&nbsp;

00:00:40.960 --> 00:00:47.004
we can hypothesize about possible futures and&nbsp;
use that to shape what direction we take. 
 
 

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[TEASER ENDS] 
 
 

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GRETCHEN HUIZINGA: You’re listening to Ideas,&nbsp;
a Microsoft Research Podcast that dives deep&nbsp;&nbsp;

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into the world of technology research and&nbsp;
the profound questions behind the code.&nbsp;&nbsp;

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I’m Gretchen Huizinga. In this series,&nbsp;
we’ll explore the technologies that&nbsp;&nbsp;

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are shaping our future and the big&nbsp;
ideas that propel them forward.  
 
 

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[MUSIC FADES] 
 
 

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My guest on this episode is Nicole Immorlica, a&nbsp;
senior principal research manager at Microsoft&nbsp;&nbsp;

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Research New England, where she leads the&nbsp;
Economics and Computation Group. Considered by&nbsp;&nbsp;

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many to be an expert on social networks, matching&nbsp;
markets, and mechanism design, Nicole has a long&nbsp;&nbsp;

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list of accomplishments and honors to her name&nbsp;
and some pretty cool new research besides. Nicole&nbsp;&nbsp;

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Immorlica, I'm excited to get into all the&nbsp;
things with you today. Welcome to Ideas! 
 
 

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NICOLE IMMORLICA: Thank you. 
 
 

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HUIZINGA: So before we get into specifics on&nbsp;
the big ideas behind your work, let's find&nbsp;&nbsp;

00:01:47.040 --> 00:01:52.320
out a little bit about how and why you started&nbsp;
doing it. Tell us your research origin story and,&nbsp;&nbsp;

00:01:52.320 --> 00:01:57.760
if there was one, what big idea or&nbsp;
animating “what if” inspired young&nbsp;&nbsp;

00:01:57.760 --> 00:02:03.260
Nicole and launched a career in theoretical&nbsp;
economics and computation research? 
 
 

00:02:03.260 --> 00:02:09.040
IMMORLICA: So I took a rather circuitous route&nbsp;
to my current research path. In high school,&nbsp;&nbsp;

00:02:09.040 --> 00:02:12.760
I thought I actually wanted to study&nbsp;
physics, specifically cosmology,&nbsp;&nbsp;

00:02:12.760 --> 00:02:18.240
because I was super curious about the origins&nbsp;
and evolution of the universe. In college,&nbsp;&nbsp;

00:02:18.240 --> 00:02:23.160
I realized on a day-to-day basis, what I&nbsp;
really enjoyed was the math underlying physics,&nbsp;&nbsp;

00:02:23.160 --> 00:02:28.880
in particular proving theorems. So I changed my&nbsp;
major to computer science, which was the closest&nbsp;&nbsp;

00:02:28.880 --> 00:02:34.800
thing to math that seemed to have a promising&nbsp;
career path. [LAUGHTER] But when graduation came,&nbsp;&nbsp;

00:02:34.800 --> 00:02:39.760
I just wasn't ready to be a grownup and enter&nbsp;
the workforce! So I defaulted to graduate&nbsp;&nbsp;

00:02:39.760 --> 00:02:44.720
school thinking I'd continue my studies&nbsp;
in theoretical computer science. It was in&nbsp;&nbsp;

00:02:44.720 --> 00:02:49.920
graduate school where I found my passion for the&nbsp;
intersection of CS theory and micro-economics.&nbsp;&nbsp;

00:02:49.920 --> 00:02:54.920
I was just really enthralled with this idea&nbsp;
that I could use the math that I so love to&nbsp;&nbsp;

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understand society and to help shape it in ways&nbsp;
that improve the world for everyone in it. 
 
 

00:02:59.960 --> 00:03:03.000
HUIZINGA: I've yet to meet an&nbsp;
accomplished researcher who&nbsp;&nbsp;

00:03:03.000 --> 00:03:07.800
didn't have at least one inspirational&nbsp;
“who” behind the “what.” So tell us&nbsp;&nbsp;

00:03:07.800 --> 00:03:10.920
about the influential people in&nbsp;
your life. Who are your heroes,&nbsp;&nbsp;

00:03:10.920 --> 00:03:17.060
economic or otherwise, and how did their ideas&nbsp;
inspire yours and even inform your career? 
 
 

00:03:17.060 --> 00:03:22.800
IMMORLICA: Yeah, of course. So when I&nbsp;
was a graduate student at MIT, you know,&nbsp;&nbsp;

00:03:22.800 --> 00:03:29.200
I was happily enjoying my math, and just&nbsp;
on a whim, I decided to take a course,&nbsp;&nbsp;

00:03:29.200 --> 00:03:36.880
along with a bunch of my other MIT graduate&nbsp;
students, at Harvard from Professor Al Roth.&nbsp;&nbsp;

00:03:36.880 --> 00:03:42.480
And this was a market design course. We didn't&nbsp;
even really know what market design was,&nbsp;&nbsp;

00:03:42.480 --> 00:03:49.000
but in the context of that course, Al himself&nbsp;
and the course content just demonstrated to&nbsp;&nbsp;

00:03:49.000 --> 00:03:54.840
me the transformative power of algorithms and&nbsp;
economics. So, I mean, you might have heard of&nbsp;&nbsp;

00:03:54.840 --> 00:04:00.240
Al. He eventually won a Nobel Prize in economics&nbsp;
for his work using a famous matching algorithm&nbsp;&nbsp;

00:04:00.240 --> 00:04:06.480
to optimize markets for doctors and separately for&nbsp;
kidney exchange programs. And I thought to myself,&nbsp;&nbsp;

00:04:06.480 --> 00:04:10.320
wow, this is such meaningful work.&nbsp;
This is something that I want to do,&nbsp;&nbsp;

00:04:10.320 --> 00:04:19.680
something I can contribute to the world, you know,&nbsp;
something that my skill set is well adapted to.&nbsp;&nbsp;

00:04:19.680 --> 00:04:25.400
And so I just decided to move on with that, and&nbsp;
I've never really looked back. It's so satisfying&nbsp;&nbsp;

00:04:25.400 --> 00:04:31.660
to do something that's both … I like both the&nbsp;
means and I care very deeply about the ends. 
 
 

00:04:31.660 --> 00:04:36.840
HUIZINGA: So, Nicole, you mentioned you&nbsp;
took a course from Al Roth. Did he become&nbsp;&nbsp;

00:04:36.840 --> 00:04:41.280
anything more to you than that one sort&nbsp;
of inspirational teacher? Did you have&nbsp;&nbsp;

00:04:41.280 --> 00:04:46.040
any interaction with him? And were&nbsp;
there any other professors, authors,&nbsp;&nbsp;

00:04:46.040 --> 00:04:52.280
or people that inspired you in the coursework&nbsp;
and graduate studies side of things? 
 
 

00:04:52.280 --> 00:04:57.160
IMMORLICA: Yeah, I mean, Al has been&nbsp;
transformative for my whole career. Like,&nbsp;&nbsp;

00:04:57.160 --> 00:05:03.680
I first met him in the context of that course, but&nbsp;
I, and many of the graduate students in my area,&nbsp;&nbsp;

00:05:03.680 --> 00:05:07.440
have continued to work with him,&nbsp;
speak to him at conferences,&nbsp;&nbsp;

00:05:07.440 --> 00:05:11.840
be influenced by him, so he's been&nbsp;
there throughout my career for me.  
 
 

00:05:11.840 --> 00:05:12.549
HUIZINGA: Right, right, right … 
 
 

00:05:12.549 --> 00:05:20.320
IMMORLICA: In terms of other inspirations, I've&nbsp;
really admired throughout my career … this is&nbsp;&nbsp;

00:05:20.320 --> 00:05:25.600
maybe more structurally how different&nbsp;
individuals operate their careers. So,&nbsp;&nbsp;

00:05:25.600 --> 00:05:31.950
for example, Jennifer Chayes, who was the leader&nbsp;
of the Microsoft Research lab that I joined … 
 
 

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HUIZINGA: Yeah! 
 
 

00:05:32.560 --> 00:05:39.760
IMMORLICA: … and nowadays Sue Dumais. Various&nbsp;
other classic figures like Éva Tardos. Like,&nbsp;&nbsp;

00:05:39.760 --> 00:05:47.720
all of these are incredibly strong, driven&nbsp;
women that have a vision of research,&nbsp;&nbsp;

00:05:47.720 --> 00:05:51.960
which has been transformative in their&nbsp;
individual fields but also care very&nbsp;&nbsp;

00:05:51.960 --> 00:05:58.480
deeply about the community and the larger&nbsp;
context than just themselves and creating&nbsp;&nbsp;

00:05:58.480 --> 00:06:03.620
spaces for people to really flourish.&nbsp;
And I really admire that, as well. 
 
 

00:06:03.620 --> 00:06:07.920
HUIZINGA: Yeah, I've had both Sue&nbsp;
and Jennifer on the show before,&nbsp;&nbsp;

00:06:07.920 --> 00:06:13.240
and they are amazing. Absolutely. Well,&nbsp;
listen, Nicole, as an English major,&nbsp;&nbsp;

00:06:13.240 --> 00:06:18.080
I was thrilled—and a little surprised—to&nbsp;
hear that literature has influenced your&nbsp;&nbsp;

00:06:18.080 --> 00:06:24.400
work in economics. I did not have that on my&nbsp;
bingo card. Tell us about your interactions&nbsp;&nbsp;

00:06:24.400 --> 00:06:29.800
with literature and how they broadened your&nbsp;
vision of optimization and economic models. 
 
 

00:06:29.800 --> 00:06:35.960
IMMORLICA: Oh, I read a lot, especially&nbsp;
fiction. And I care very deeply about&nbsp;&nbsp;

00:06:35.960 --> 00:06:44.240
being a broad human being, like, with a lot of&nbsp;
different facets. And so I seek inspiration not&nbsp;&nbsp;

00:06:44.240 --> 00:06:52.360
just from my fellow economists and computer&nbsp;
scientists but also from artists and writers.&nbsp;&nbsp;

00:06:52.360 --> 00:07:00.600
One specific example would be Walt Whitman. So&nbsp;
I took up this poetry class as an MIT alumni,&nbsp;&nbsp;

00:07:00.600 --> 00:07:07.240
Walt Whitman, and we, in the context of that&nbsp;
course, of course, read his famous poem “Song&nbsp;&nbsp;

00:07:07.240 --> 00:07:14.360
of Myself.” And I remember one specific verse&nbsp;
just really struck me, where he writes, “Do I&nbsp;&nbsp;

00:07:14.360 --> 00:07:21.240
contradict myself? Very well then I contradict&nbsp;
myself, (I am large, I contain multitudes.)”&nbsp;&nbsp;

00:07:21.240 --> 00:07:27.920
And this just was so powerful because, you&nbsp;
know, in traditional economic models, we&nbsp;&nbsp;

00:07:27.920 --> 00:07:33.320
assume that individuals seek to optimize a single&nbsp;
objective function, which we call their utility,&nbsp;&nbsp;

00:07:33.320 --> 00:07:38.520
but what Whitman is pointing out is that we&nbsp;
actually have many different objective functions,&nbsp;&nbsp;

00:07:38.520 --> 00:07:43.680
which can even conflict with one another, and&nbsp;
some at times are more salient than others,&nbsp;&nbsp;

00:07:43.680 --> 00:07:50.240
and they arise from my many identities as a&nbsp;
member of my family, as an American, as you know,&nbsp;&nbsp;

00:07:50.240 --> 00:07:57.280
a computer scientist, as an economist, and&nbsp;
maybe we should actually try to think a&nbsp;&nbsp;

00:07:57.280 --> 00:08:02.740
little bit more seriously about these multiple&nbsp;
identities in the context of our modeling. 
 
 

00:08:02.740 --> 00:08:07.829
HUIZINGA: That just warms my&nbsp;
English major heart … [LAUGHS] 
 
 

00:08:07.829 --> 00:08:08.870
IMMORLICA: I'm glad! [LAUGHS] 
 
 

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HUIZINGA: Oh my gosh. And it's so interesting&nbsp;
because, yeah, we always think of, sort of,&nbsp;&nbsp;

00:08:13.520 --> 00:08:20.160
singular optimization. And so it's like, how do&nbsp;
we expand our horizon on that sort of optimization&nbsp;&nbsp;

00:08:20.160 --> 00:08:26.080
vision? So I love that. Well, you've received&nbsp;
what I can only call a flurry of honors and&nbsp;&nbsp;

00:08:26.080 --> 00:08:32.720
awards last year. Most recently, you were named&nbsp;
an ACM Fellow—ACM being Association for Computing&nbsp;&nbsp;

00:08:32.720 --> 00:08:37.480
Machinery, for those who don't know—which&nbsp;
acknowledges people who bring, and I quote,&nbsp;&nbsp;

00:08:37.480 --> 00:08:43.480
“transformative contributions to computing&nbsp;
science and technology.” Now your citation is for,&nbsp;&nbsp;

00:08:43.480 --> 00:08:49.440
and I quote again, “contributions to economics and&nbsp;
computation, including market design, auctions,&nbsp;&nbsp;

00:08:49.440 --> 00:08:56.120
and social networks.” That's a mouthful, but if&nbsp;
we're talking about transformative contributions,&nbsp;&nbsp;

00:08:56.120 --> 00:08:59.440
how were things different before you&nbsp;
brought your ideas to this field,&nbsp;&nbsp;

00:09:00.280 --> 00:09:03.580
and how were your contributions&nbsp;
transformative or groundbreaking? 
 
 

00:09:03.580 --> 00:09:09.800
IMMORLICA: Yeah, so it's actually a relatively new&nbsp;
thing for computer scientists to study economics,&nbsp;&nbsp;

00:09:09.800 --> 00:09:15.080
and I was among the first cohort to&nbsp;
do so seriously. So before our time,&nbsp;&nbsp;

00:09:15.080 --> 00:09:19.600
economists mostly focused on finding&nbsp;
optimal solutions to the problems they&nbsp;&nbsp;

00:09:19.600 --> 00:09:25.120
posed without regard for the computational&nbsp;
or informational requirements therein. But&nbsp;&nbsp;

00:09:25.120 --> 00:09:29.720
computer scientists have an extensive&nbsp;
toolkit to manage such complexities.&nbsp;&nbsp;

00:09:29.720 --> 00:09:36.200
So, for example, in a paper on pricing, which&nbsp;
is a classic economic problem—how do we set up&nbsp;&nbsp;

00:09:37.000 --> 00:09:42.680
prices for goods in a store?—my coauthors&nbsp;
and I used the computer science notion of&nbsp;&nbsp;

00:09:42.680 --> 00:09:49.760
approximation to show that a very simple menu of&nbsp;
prices generates almost optimal revenue for the&nbsp;&nbsp;

00:09:49.760 --> 00:09:55.520
seller. And prior to this work, economists&nbsp;
only knew how to characterize optimal but&nbsp;&nbsp;

00:09:55.520 --> 00:10:01.600
infinitely large and thereby impractical menus&nbsp;
of prices. So this is an example of the kind&nbsp;&nbsp;

00:10:01.600 --> 00:10:07.360
of work that I and other computer scientists&nbsp;
do that can really transform economics. 
 
 

00:10:07.360 --> 00:10:13.680
HUIZINGA: Right. Well, in addition to the ACM&nbsp;
fellowship, another honor you received from ACM in&nbsp;&nbsp;

00:10:13.680 --> 00:10:20.280
2023 was the Test of Time Award, where the Special&nbsp;
Interest Group on Economics and Computation,&nbsp;&nbsp;

00:10:20.280 --> 00:10:27.400
or SIGecom, recognizes influential papers&nbsp;
published between 10 and 25 years ago that&nbsp;&nbsp;

00:10:27.400 --> 00:10:32.960
significantly impacted research or applications&nbsp;
in economics and computation. Now you got this&nbsp;&nbsp;

00:10:32.960 --> 00:10:40.040
award for a paper you cowrote in 2005 called&nbsp;
“Marriage, Honesty, and Stability.” Clearly, I'm&nbsp;&nbsp;

00:10:40.040 --> 00:10:45.000
not an economist because I thought this was about&nbsp;
how to avoid getting a divorce, but actually,&nbsp;&nbsp;

00:10:45.000 --> 00:10:49.640
it's about a well-known and very difficult problem&nbsp;
called the stable marriage problem. Tell us about&nbsp;&nbsp;

00:10:49.640 --> 00:10:55.940
this problem and the paper and why, as the&nbsp;
award states, it’s stood the test of time. 
 
 

00:10:55.940 --> 00:10:59.760
IMMORLICA: Sure. You're not the only one to&nbsp;
have misinterpreted the title. [LAUGHTER] I&nbsp;&nbsp;

00:10:59.760 --> 00:11:05.400
remember I gave a talk once and someone&nbsp;
came and when they left the talk, they said,&nbsp;&nbsp;

00:11:05.400 --> 00:11:11.680
I did not think that this was about math! But,&nbsp;
you know, math, as I learned, is about life,&nbsp;&nbsp;

00:11:11.680 --> 00:11:18.440
and the stable marriage problem has, you know,&nbsp;
interpretation about marriage and divorce. In&nbsp;&nbsp;

00:11:18.440 --> 00:11:24.800
particular, the problem asks, how can we match&nbsp;
market participants to one another such that no&nbsp;&nbsp;

00:11:24.800 --> 00:11:31.600
pair prefer each other to their assigned&nbsp;
match? So to relate this to the somewhat&nbsp;&nbsp;

00:11:31.600 --> 00:11:38.320
outdated application of marriage markets, the&nbsp;
market participants could be men and women,&nbsp;&nbsp;

00:11:38.320 --> 00:11:44.480
and the stable marriage problem asks if there is&nbsp;
a set of marriages such that no pair of couples&nbsp;&nbsp;

00:11:44.480 --> 00:11:50.360
seeks a divorce in order to marry each other. And&nbsp;
so, you know, that's not really a problem we solve&nbsp;&nbsp;

00:11:50.360 --> 00:11:55.040
in real life, but there's a lot of modern&nbsp;
applications of this problem. For example,&nbsp;&nbsp;

00:11:55.040 --> 00:12:00.280
assigning medical students to hospitals for&nbsp;
their residencies, or if you have children,&nbsp;&nbsp;

00:12:00.280 --> 00:12:06.160
many cities in the United States and around the&nbsp;
world use this stable marriage problem to think&nbsp;&nbsp;

00:12:06.160 --> 00:12:12.440
about the assignment of K-to-12 students to&nbsp;
public schools. And so in these applications,&nbsp;&nbsp;

00:12:12.440 --> 00:12:16.400
the stability property has been shown&nbsp;
to contribute to the longevity of the&nbsp;&nbsp;

00:12:16.400 --> 00:12:24.520
market. And in the 1960s, David Gale and Lloyd&nbsp;
Shapley proved, via an algorithm, interestingly,&nbsp;&nbsp;

00:12:24.520 --> 00:12:30.520
that stable matches exist! Well, in fact, there&nbsp;
can be exponentially many stable matches. And&nbsp;&nbsp;

00:12:30.520 --> 00:12:37.600
so this leads to a very important question for&nbsp;
people that want to apply this theory to practice,&nbsp;&nbsp;

00:12:37.600 --> 00:12:42.680
which is, which stable match should they select&nbsp;
among the many ones that exist, and what algorithm&nbsp;&nbsp;

00:12:42.680 --> 00:12:48.920
should they use to select it? So our work shows&nbsp;
that under very natural conditions, namely that&nbsp;&nbsp;

00:12:48.920 --> 00:12:54.120
preference lists are short and sufficiently&nbsp;
random, it doesn't matter. Most participants&nbsp;&nbsp;

00:12:54.120 --> 00:13:00.680
have a unique stable match. And so, you know, you&nbsp;
can just design your market without worrying too&nbsp;&nbsp;

00:13:00.680 --> 00:13:05.080
much about what algorithm you use or which match&nbsp;
you select because for most people it doesn't&nbsp;&nbsp;

00:13:05.080 --> 00:13:10.560
matter. And since our paper, many researchers&nbsp;
have followed up on our work studying conditions&nbsp;&nbsp;

00:13:10.560 --> 00:13:17.465
under which matchings are essentially unique and&nbsp;
thereby influencing policy recommendations. 
 
 

00:13:17.465 --> 00:13:23.400
HUIZINGA: Hmm. So this work was clearly focused&nbsp;
on the economics side of things like markets.&nbsp;&nbsp;

00:13:23.400 --> 00:13:27.920
So this seems to have wide application&nbsp;
outside of economics. Is that accurate? 
 
 

00:13:27.920 --> 00:13:32.040
IMMORLICA: Well, it depends how you&nbsp;
define economics, so I would … 
 
 

00:13:32.040 --> 00:13:32.749
HUIZINGA: I suppose! [LAUGHTER] 
 
 

00:13:32.749 --> 00:13:36.000
IMMORLICA: I define economics as&nbsp;
the problem … I mean, Al Roth,&nbsp;&nbsp;

00:13:36.000 --> 00:13:40.211
for example, wrote a book whose&nbsp;
title was Who Gets What—and Why.  
 
 

00:13:40.211 --> 00:13:42.320
HUIZINGA: Ooh.
IMMORLICA: So economics is all about,

00:13:42.320 --> 00:13:47.480
how do we allocate stuff? How do we allocate&nbsp;
scarce resources? And many economic problems&nbsp;&nbsp;

00:13:47.480 --> 00:13:53.250
are not about spending money. It's about&nbsp;
how do we create outcomes in the world. 
 
 

00:13:53.250 --> 00:13:53.269
HUIZINGA: Yeah. 
 
 

00:13:53.269 --> 00:13:56.860
IMMORLICA: And so I would say all of&nbsp;
these problem domains are economics. 
 
 

00:13:56.860 --> 00:14:03.680
HUIZINGA: Well, finally, as regards the “flurry”&nbsp;
of honors, besides being named an ACM Fellow and&nbsp;&nbsp;

00:14:03.680 --> 00:14:10.320
also this Test of Time Award, you were also&nbsp;
named an Economic Theory Fellow by the Society&nbsp;&nbsp;

00:14:10.320 --> 00:14:16.320
for [the] Advancement of Economic Theory, or&nbsp;
SAET. And the primary qualification here was&nbsp;&nbsp;

00:14:16.320 --> 00:14:22.120
to have “substantially or creatively advanced&nbsp;
theoretical economics.” So what were the big&nbsp;&nbsp;

00:14:22.120 --> 00:14:27.620
challenges you tackled, and what big ideas did&nbsp;
you contribute to advance economic theory? 
 
 

00:14:27.620 --> 00:14:31.880
IMMORLICA: So as we've discussed, I and&nbsp;
others with my background have done a&nbsp;&nbsp;

00:14:31.880 --> 00:14:36.408
lot to advance economic theory through&nbsp;
the lens of computational thinking. 
 
 

00:14:36.408 --> 00:14:36.429
HUIZINGA: Mmm ... 
 
 

00:14:36.429 --> 00:14:40.720
IMMORLICA: We've introduced ideas such as&nbsp;
approximation, which we discussed earlier,&nbsp;&nbsp;

00:14:40.720 --> 00:14:46.760
or machine learning to economic models and&nbsp;
proposing them as solution concepts. We've&nbsp;&nbsp;

00:14:46.760 --> 00:14:52.880
also used computer science tools to solve problems&nbsp;
within these models. So two examples from my own&nbsp;&nbsp;

00:14:52.880 --> 00:14:59.960
work include randomized algorithm analysis and&nbsp;
stochastic gradient descent. And importantly,&nbsp;&nbsp;

00:14:59.960 --> 00:15:05.480
we've introduced very relevant new settings&nbsp;
to the field of economics. So, you know,&nbsp;&nbsp;

00:15:05.480 --> 00:15:10.520
I've worked hard on large-scale auction design and&nbsp;
associated auto-bidding algorithms, for instance,&nbsp;&nbsp;

00:15:10.520 --> 00:15:14.880
which are a primary source of revenue for&nbsp;
tech companies these days. I've thought a&nbsp;&nbsp;

00:15:14.880 --> 00:15:18.760
lot about how data enters into markets&nbsp;
and how we should think about data in&nbsp;&nbsp;

00:15:18.760 --> 00:15:24.080
the context of market design. And lately, I've&nbsp;
spent a lot of time thinking about generative&nbsp;&nbsp;

00:15:24.080 --> 00:15:28.960
AI and its impact in the economy at&nbsp;
both the micro and macro levels. 
 
 

00:15:28.960 --> 00:15:35.640
HUIZINGA: Yeah. Let's take a detour for a minute&nbsp;
and get into the philosophical weeds on this idea&nbsp;&nbsp;

00:15:35.640 --> 00:15:41.520
of theory. And I want to cite an article that&nbsp;
was written way back in 2008 by the editor of&nbsp;&nbsp;

00:15:41.520 --> 00:15:47.040
Wired magazine at the time, Chris Anderson. He&nbsp;
wrote an article titled “The End of Theory,”&nbsp;&nbsp;

00:15:47.040 --> 00:15:52.120
which was provocative in itself. And he began&nbsp;
by quoting the British statistician George Box,&nbsp;&nbsp;

00:15:52.120 --> 00:15:57.320
who famously said, “All models are wrong, but&nbsp;
some are useful.” And then he argued that in&nbsp;&nbsp;

00:15:57.320 --> 00:16:02.720
an era of massively abundant data, companies&nbsp;
didn't have to settle for wrong models. And&nbsp;&nbsp;

00:16:02.720 --> 00:16:08.480
then he went even further and attacked the very&nbsp;
idea of theory and, citing Google, he said,&nbsp;&nbsp;

00:16:08.480 --> 00:16:14.200
“Out with every theory of human behavior, from&nbsp;
linguistics to sociology. Forget taxonomy,&nbsp;&nbsp;

00:16:14.200 --> 00:16:19.960
ontology, psychology. Who knows why people&nbsp;
do what they do? The point is they do it,&nbsp;&nbsp;

00:16:19.960 --> 00:16:26.200
and we can track and measure it with unprecedented&nbsp;
fidelity.” So, Nicole, from your perch, 15 years&nbsp;&nbsp;

00:16:26.200 --> 00:16:32.220
later, in the age of generative AI, what did Chris&nbsp;
Anderson get right, and what did he get wrong? 
 
 

00:16:32.220 --> 00:16:37.800
IMMORLICA: So, honestly, when generative AI&nbsp;
came out, I had a bit of a moment, a like&nbsp;&nbsp;

00:16:37.800 --> 00:16:43.444
crisis of confidence, so to speak, in&nbsp;
the value of theory in my own work.  
 
 

00:16:43.444 --> 00:16:43.465
HUIZINGA: Really! 
 
 

00:16:43.465 --> 00:16:46.520
IMMORLICA: And I decided to dive&nbsp;
into a data-driven project, which&nbsp;&nbsp;

00:16:46.520 --> 00:16:52.560
was not my background at all. As a complete&nbsp;
newbie, I was quite shocked by what I found,&nbsp;&nbsp;

00:16:52.560 --> 00:16:59.680
which is probably common knowledge among experts:&nbsp;
data is very messy and very noisy, and it's very&nbsp;&nbsp;

00:16:59.680 --> 00:17:05.080
hard to get any signal out of it. Theory is an&nbsp;
essential counterpart to any data-driven research.&nbsp;&nbsp;

00:17:05.080 --> 00:17:11.240
It provides a guiding light. But even more&nbsp;
importantly, theory allows us to illuminate things&nbsp;&nbsp;

00:17:11.240 --> 00:17:17.320
that have not even happened. So with models, we&nbsp;
can hypothesize about possible futures and use&nbsp;&nbsp;

00:17:17.320 --> 00:17:23.320
that to shape what direction we take. Relatedly,&nbsp;
what I think that article got most wrong was the&nbsp;&nbsp;

00:17:23.320 --> 00:17:29.720
statement that correlation supersedes causation,&nbsp;
which is actually how the article closes,&nbsp;&nbsp;

00:17:29.720 --> 00:17:35.680
this idea that causation is dead or dying. I think&nbsp;
causation will never become irrelevant. Causation&nbsp;&nbsp;

00:17:35.680 --> 00:17:41.680
is what allows us to reason about counterfactuals.&nbsp;
It's fundamentally irreplaceable. It's like,&nbsp;&nbsp;

00:17:41.680 --> 00:17:45.840
you know, data, you can only see data about&nbsp;
things that happened. You can't see data about&nbsp;&nbsp;

00:17:45.840 --> 00:17:50.540
things that could happen but haven't or,&nbsp;
you know, about alternative futures.  
 
 

00:17:50.540 --> 00:17:51.440
HUIZINGA: Interesting. 
 
 

00:17:51.440 --> 00:17:53.800
IMMORLICA: And that's what theory gives you. 
 
 

00:17:53.800 --> 00:17:59.080
HUIZINGA: Yeah. Well, let's continue on that&nbsp;
a little bit because this show is yet another&nbsp;&nbsp;

00:17:59.080 --> 00:18:03.360
part of our short “series within a series”&nbsp;
featuring some of the work going on in the AI,&nbsp;&nbsp;

00:18:03.360 --> 00:18:07.320
Cognition, and the Economy initiative&nbsp;
at Microsoft Research. And I just did&nbsp;&nbsp;

00:18:07.320 --> 00:18:11.840
an episode with Brendan Lucier and Mert&nbsp;
Demirer on the micro- and macro-economic&nbsp;&nbsp;

00:18:11.840 --> 00:18:17.160
impact of generative AI. And you were part of&nbsp;
that project, but another fascinating project&nbsp;&nbsp;

00:18:17.160 --> 00:18:22.160
you're involved in right now looks at the&nbsp;
impact of generative AI on what you call&nbsp;&nbsp;

00:18:22.160 --> 00:18:28.920
the “content ecosystem.” So what's the problem&nbsp;
behind this research, and what unique incentive&nbsp;&nbsp;

00:18:28.920 --> 00:18:35.640
challenges are content creators facing in light&nbsp;
of large language and multimodal AI models? 
 
 

00:18:35.640 --> 00:18:41.320
IMMORLICA: Yeah, so this is a project with&nbsp;
Brendan, as well, whom you interviewed previously,&nbsp;&nbsp;

00:18:41.320 --> 00:18:46.880
and also Nageeb Ali, an economist and AICE&nbsp;
Fellow at Penn State, and Meena Jagadeesan,&nbsp;&nbsp;

00:18:47.400 --> 00:18:54.200
who was my intern from Microsoft Research from&nbsp;
UC Berkeley. So when you think about content&nbsp;&nbsp;

00:18:54.200 --> 00:19:00.320
or really any consumption good, there's often a&nbsp;
whole supply chain that produces it. For music,&nbsp;&nbsp;

00:19:00.320 --> 00:19:05.880
for example, there's the composition of the&nbsp;
song, the recording, the mixing, and finally&nbsp;&nbsp;

00:19:05.880 --> 00:19:13.160
the delivery to the consumer. And all of these&nbsp;
steps involve multiple humans producing things,&nbsp;&nbsp;

00:19:13.160 --> 00:19:18.680
generating things, getting paid along the&nbsp;
way. One way to think about generative AI is&nbsp;&nbsp;

00:19:18.680 --> 00:19:24.166
that it allows the consumer to bypass this supply&nbsp;
chain and just generate the content directly.  
 
 

00:19:24.166 --> 00:19:24.189
HUIZINGA: Right … 
 
 

00:19:24.189 --> 00:19:28.080
IMMORLICA: So, for example, like,&nbsp;
I could ask a model, an AI model,&nbsp;&nbsp;

00:19:28.080 --> 00:19:33.160
to compose and play a song about my cat named&nbsp;
Whiskey. [LAUGHTER] And it would do a decent&nbsp;&nbsp;

00:19:33.160 --> 00:19:39.320
job of it, and it would tailor the song to my&nbsp;
specific situation. But there are drawbacks,&nbsp;&nbsp;

00:19:39.320 --> 00:19:44.800
as well. One thing many researchers fear&nbsp;
is that AI needs human-generated content&nbsp;&nbsp;

00:19:44.800 --> 00:19:50.640
to train. And so if people start bypassing the&nbsp;
supply chain and just using AI-generated content,&nbsp;&nbsp;

00:19:50.640 --> 00:19:55.420
there won't be any content for AI to&nbsp;
train on and AI will cease to improve.  
 
 

00:19:55.420 --> 00:19:56.200
HUIZINGA: Right. 
 
 

00:19:56.200 --> 00:20:01.640
IMMORLICA: Another thing that could be troubling&nbsp;
is that there are economies of scale. So there is&nbsp;&nbsp;

00:20:01.640 --> 00:20:07.880
a nontrivial cost to producing music, even for AI,&nbsp;
and if we share that cost among many listeners,&nbsp;&nbsp;

00:20:07.880 --> 00:20:14.000
it becomes more affordable. But if we each access&nbsp;
the content ourselves, it's going to impose a&nbsp;&nbsp;

00:20:14.000 --> 00:20:20.760
large per-song cost. And then finally, and this&nbsp;
is, I think, most salient to most people, there's&nbsp;&nbsp;

00:20:20.760 --> 00:20:26.080
some kind of social benefit to having songs that&nbsp;
everyone listens to. It provides a common ground&nbsp;&nbsp;

00:20:26.080 --> 00:20:32.480
for understanding. It's a pillar of our culture,&nbsp;
right. And so if we bypass that, aren't we losing&nbsp;&nbsp;

00:20:32.480 --> 00:20:39.040
something? So for all of these reasons, it becomes&nbsp;
very important to understand the market conditions&nbsp;&nbsp;

00:20:39.040 --> 00:20:44.360
under which people will choose to bypass supply&nbsp;
chains and the associated costs and benefits of&nbsp;&nbsp;

00:20:44.360 --> 00:20:50.680
this. What we show in this work, which is very&nbsp;
much work in progress, is that when AI is very&nbsp;&nbsp;

00:20:50.680 --> 00:20:57.000
costly, neither producers nor consumers will use&nbsp;
it, but as it gets cheaper, at first, it actually&nbsp;&nbsp;

00:20:57.000 --> 00:21:02.760
helps content producers that can leverage it to&nbsp;
augment their own ability, creating higher-quality&nbsp;&nbsp;

00:21:02.760 --> 00:21:10.320
content, more personalized content more&nbsp;
cheaply. But then, as the AI gets super cheap,&nbsp;&nbsp;

00:21:10.320 --> 00:21:15.760
this bypassing behavior starts to emerge, and the&nbsp;
content creators are driven out of the market. 
 
 

00:21:15.760 --> 00:21:19.040
HUIZINGA: Right. So what do we do about that? 
 
 

00:21:19.040 --> 00:21:22.000
IMMORLICA: Well, you know, you have to take a&nbsp;&nbsp;

00:21:22.000 --> 00:21:25.200
stance on whether that's even a&nbsp;
good thing or a bad thing, … 
 
 

00:21:25.200 --> 00:21:25.505
HUIZINGA: Right! 
 
 

00:21:25.505 --> 00:21:31.080
IMMORLICA: … so it could be that we do nothing&nbsp;
about it. We could also impose a sort of minimum&nbsp;&nbsp;

00:21:31.080 --> 00:21:40.360
wage on AI, if you like, to artificially&nbsp;
inflate its costs. We could try to amplify&nbsp;&nbsp;

00:21:40.360 --> 00:21:48.680
the parts of the system that lead towards more&nbsp;
human-generated content, like this sociability,&nbsp;&nbsp;

00:21:48.680 --> 00:21:53.840
the fact that we all are listening to the&nbsp;
same stuff. We could try to make that more&nbsp;&nbsp;

00:21:53.840 --> 00:22:01.320
salient for people. But, you know, generally&nbsp;
speaking, I'm not really in a place to take&nbsp;&nbsp;

00:22:01.320 --> 00:22:05.320
a stance on whether this is a good thing or a&nbsp;
bad thing. I think this is for policymakers. 
 
 

00:22:05.320 --> 00:22:10.640
HUIZINGA: It feels like we're at an inflection&nbsp;
point. I'm really interested to see what your&nbsp;&nbsp;

00:22:10.640 --> 00:22:16.360
research in this arena, the content ecosystem,&nbsp;
brings. You know, I'll mention, too, recently I&nbsp;&nbsp;

00:22:16.360 --> 00:22:24.720
read a blog written by Yoshua Bengio and Vincent&nbsp;
Conitzer, and they acknowledged that the image&nbsp;&nbsp;

00:22:24.720 --> 00:22:31.640
that they used at the top had been created by an&nbsp;
AI bot. And then they said they made a donation to&nbsp;&nbsp;

00:22:31.640 --> 00:22:38.640
an art museum to say, we're giving something back&nbsp;
to the artistic community that we may have used.&nbsp;&nbsp;

00:22:38.640 --> 00:22:46.720
Where do you see this, you know, #NoLLM situation&nbsp;
coming in this content ecosystem market? 
 
 

00:22:46.720 --> 00:22:51.960
IMMORLICA: Yeah, that's a very interesting&nbsp;
move on their part. I know Vince quite well,&nbsp;&nbsp;

00:22:51.960 --> 00:22:57.840
actually. I'm not sure that artists of the&nbsp;
sort of “art museum nature” suffer, so …  
 
 

00:22:57.840 --> 00:22:58.000
HUIZINGA: Right? [LAUGHS] 
 
 

00:22:58.000 --> 00:23:01.200
IMMORLICA: One of my favorite&nbsp;
artists is Laurie Anderson. I&nbsp;&nbsp;

00:23:01.200 --> 00:23:03.032
don't know if you've seen her work at all … 
 
 

00:23:03.032 --> 00:23:03.065
HUIZINGA: Yeah, I have, yeah. 
 
 

00:23:03.065 --> 00:23:07.280
IMMORLICA: … but she has a piece in the MASS&nbsp;
MoCA right now, which is just brilliant,&nbsp;&nbsp;

00:23:07.280 --> 00:23:14.640
where she actually uses generative AI to create a&nbsp;
sequence of images that creates an alternate story&nbsp;&nbsp;

00:23:14.640 --> 00:23:22.240
about her family history. And it's just really,&nbsp;
really cool. I'm more worried about people who are&nbsp;&nbsp;

00:23:22.240 --> 00:23:29.920
doing art vocationally, and I think, and maybe&nbsp;
you heard some of this from Mert and Brendan,&nbsp;&nbsp;

00:23:29.920 --> 00:23:35.400
like what's going to happen is that careers are&nbsp;
going to shift and different vocations will become&nbsp;&nbsp;

00:23:35.400 --> 00:23:41.760
more salient, and we've seen this through every&nbsp;
technological revolution. People shift their work&nbsp;&nbsp;

00:23:41.760 --> 00:23:48.520
towards the things that are uniquely human that&nbsp;
we can provide and if generating an image at the&nbsp;&nbsp;

00:23:48.520 --> 00:23:52.640
top of a blog is not one of them, you know,&nbsp;
so be it. People will do something else. 
 
 

00:23:52.640 --> 00:23:55.880
HUIZINGA: Right, right, right.&nbsp;
Yeah, I just … we're on the cusp,&nbsp;&nbsp;

00:23:55.880 --> 00:23:59.440
and there's a lot of things that are going&nbsp;
to happen in the next couple of years,&nbsp;&nbsp;

00:23:59.440 --> 00:24:05.040
maybe a couple of months, who knows? [LAUGHTER]&nbsp;
Well, we hear a lot of dystopian fears—some of&nbsp;&nbsp;

00:24:05.040 --> 00:24:10.480
them we've just referred to—around AI and its&nbsp;
impact on humanity, but those fears are often&nbsp;&nbsp;

00:24:10.480 --> 00:24:16.600
dismissed by tech optimists as what I might call&nbsp;
“unwishful thinking.” So your research interests&nbsp;&nbsp;

00:24:16.600 --> 00:24:23.080
involve the design and use of sociotechnical&nbsp;
systems to quote, “explain, predict, and shape&nbsp;&nbsp;

00:24:23.080 --> 00:24:28.360
behavioral patterns in various online and offline&nbsp;
systems, markets, and games.” Now I'm with you&nbsp;&nbsp;

00:24:28.880 --> 00:24:35.160
on the “explain and predict” but when we get&nbsp;
to shaping behavioral patterns, I wonder how we&nbsp;&nbsp;

00:24:35.160 --> 00:24:40.480
tease out the bad from the good. So, in light&nbsp;
of the power of these sociotechnical systems,&nbsp;&nbsp;

00:24:40.480 --> 00:24:45.040
what could possibly go wrong, Nicole,&nbsp;
if in fact you got everything right? 
 
 

00:24:45.040 --> 00:24:50.360
IMMORLICA: Yeah, first I should clarify something.&nbsp;
When I say I'm interested in shaping behavioral&nbsp;&nbsp;

00:24:50.360 --> 00:24:55.920
patterns, I don't mean that I want to impose&nbsp;
particular behaviors on people but rather that&nbsp;&nbsp;

00:24:55.920 --> 00:25:03.080
I want to design systems that expose to people&nbsp;
relevant information and possible actions so that&nbsp;&nbsp;

00:25:03.080 --> 00:25:09.200
they have the power to shape their own behavior to&nbsp;
achieve their own goals. And if we're able to do&nbsp;&nbsp;

00:25:09.200 --> 00:25:15.000
that, and do it really well, then things can only&nbsp;
really go wrong if you believe people aren't good&nbsp;&nbsp;

00:25:15.000 --> 00:25:19.320
at making themselves happy. I mean, there's&nbsp;
certainly evidence of this, like the field of&nbsp;&nbsp;

00:25:19.320 --> 00:25:25.000
behavioral economics, to which I have contributed&nbsp;
some, tries to understand how and when people&nbsp;&nbsp;

00:25:25.000 --> 00:25:30.520
make mistakes in their behavioral choices. And&nbsp;
it proposes ways to help people mitigate these&nbsp;&nbsp;

00:25:30.520 --> 00:25:35.880
mistakes. But I caution us from going too far&nbsp;
in this direction because at the end of the day,&nbsp;&nbsp;

00:25:35.880 --> 00:25:40.560
I believe people know things about themselves&nbsp;
that no external authority can know. And you&nbsp;&nbsp;

00:25:40.560 --> 00:25:44.560
don't want to impose constraints that prevent&nbsp;
people from acting on that information. 
 
 

00:25:44.560 --> 00:25:45.480
HUIZINGA: Yeah. 
 
 

00:25:45.480 --> 00:25:50.960
IMMORLICA: Another issue here is, of course,&nbsp;
externalities. It could be that my behavior&nbsp;&nbsp;

00:25:50.960 --> 00:25:57.400
makes me happy but makes you unhappy. [LAUGHTER]&nbsp;
So another thing that can go wrong is that we,&nbsp;&nbsp;

00:25:57.400 --> 00:26:04.200
as designers of technology, fail to capture these&nbsp;
underlying externalities. I mean, ideally, like&nbsp;&nbsp;

00:26:04.200 --> 00:26:09.480
an economist would say, well, you should pay with&nbsp;
your own happiness for any negative externality&nbsp;&nbsp;

00:26:09.480 --> 00:26:15.280
you impose on others. And the fields of market and&nbsp;
mechanism design have identified very beautiful&nbsp;&nbsp;

00:26:15.280 --> 00:26:21.040
ways of making this happen automatically in simple&nbsp;
settings, such as the famous Vickrey auction. But&nbsp;&nbsp;

00:26:21.040 --> 00:26:26.020
getting this right in the complex sociotechnical&nbsp;
systems of our day is quite a challenge. 
 
 

00:26:26.020 --> 00:26:30.380
HUIZINGA: OK, go back to that auction. What&nbsp;
did you call it? The Vickrey auction? 
 
 

00:26:30.380 --> 00:26:35.240
IMMORLICA: Yeah, so Vickrey was an&nbsp;
economist, and he proposed an auction&nbsp;&nbsp;

00:26:35.240 --> 00:26:42.120
format that … so an auction is trying to&nbsp;
find a way to allocate goods, let's say,&nbsp;&nbsp;

00:26:42.120 --> 00:26:48.052
to bidders such that the bidders that value the&nbsp;
goods the most are the ones that win them. 
 
 

00:26:48.052 --> 00:26:48.069
HUIZINGA: Hm. 
 
 

00:26:48.069 --> 00:26:51.280
IMMORLICA: But of course, these bidders&nbsp;
are imposing a negative externality on&nbsp;&nbsp;

00:26:51.280 --> 00:26:58.520
the people who lose, right? [LAUGHTER] And so&nbsp;
what Vickrey showed is that a well-designed&nbsp;&nbsp;

00:26:58.520 --> 00:27:05.360
system of prices can compensate the losers&nbsp;
exactly for the externality that is imposed&nbsp;&nbsp;

00:27:05.360 --> 00:27:10.640
on them. A very simple example of a Vickrey&nbsp;
auction is if you're selling just one good,&nbsp;&nbsp;

00:27:10.640 --> 00:27:15.040
like a painting, then what you&nbsp;
should do, according to Vickrey,&nbsp;&nbsp;

00:27:15.040 --> 00:27:20.180
is solicit bids, give it to the highest bidder,&nbsp;
and charge them the second-highest price.  
 
 

00:27:20.180 --> 00:27:21.269
HUIZINGA: Interesting … 
 
 

00:27:21.269 --> 00:27:25.938
IMMORLICA: And so ... that's going&nbsp;
to have good outcomes for society. 
 
 

00:27:25.938 --> 00:27:27.560
HUIZINGA: Yeah, yeah. I want to&nbsp;
expand on a couple of thoughts&nbsp;&nbsp;

00:27:27.560 --> 00:27:32.280
here. One is as you started out to&nbsp;
answer this question, you said, well,&nbsp;&nbsp;

00:27:32.280 --> 00:27:36.040
I'm not interested in shaping behaviors&nbsp;
in terms of making you do what I want&nbsp;&nbsp;

00:27:36.040 --> 00:27:42.480
you to do. But maybe someone else is. What&nbsp;
happens if it falls into the wrong hands? 
 
 

00:27:42.480 --> 00:27:47.200
IMMORLICA: Yeah, I mean, there's&nbsp;
definitely competing interests.&nbsp;&nbsp;

00:27:47.200 --> 00:27:49.295
Everybody has their own objectives, and … 
 
 

00:27:49.295 --> 00:27:49.320
HUIZINGA: Sure, sure. 
 
 

00:27:49.320 --> 00:27:54.160
IMMORLICA: … I might be very fundamentally&nbsp;
opposed to some of them, but everybody's&nbsp;&nbsp;

00:27:54.160 --> 00:27:58.920
trying to optimize something, and&nbsp;
there are competing optimization&nbsp;&nbsp;

00:27:58.920 --> 00:28:06.160
objectives. And so what's going to happen&nbsp;
if people are leveraging this technology&nbsp;&nbsp;

00:28:06.160 --> 00:28:10.400
to optimize for themselves and&nbsp;
thereby harming me a lot? 
 
 

00:28:10.400 --> 00:28:11.240
HUIZINGA: Right? 
 
 

00:28:11.240 --> 00:28:16.080
IMMORLICA: Ideally, we'll have regulation to&nbsp;
kind of cover that. I think what I'm more worried&nbsp;&nbsp;

00:28:16.080 --> 00:28:21.120
about is the idea that the technology&nbsp;
itself might not be aligned with me,&nbsp;&nbsp;

00:28:21.120 --> 00:28:24.680
right. Like at the end of the day, there&nbsp;
are companies that are producing this&nbsp;&nbsp;

00:28:24.680 --> 00:28:29.720
technology that I'm then using to achieve&nbsp;
my objectives, but the company's objectives,&nbsp;&nbsp;

00:28:29.720 --> 00:28:33.760
the creators of the technology, might not&nbsp;
be completely aligned with the person's&nbsp;&nbsp;

00:28:33.760 --> 00:28:39.680
objectives. And so I've looked a little&nbsp;
bit in my research about how this potential&nbsp;&nbsp;

00:28:39.680 --> 00:28:45.440
misalignment might result in outcomes that&nbsp;
are not all that great for either party. 
 
 

00:28:45.440 --> 00:28:48.360
HUIZINGA: Wow. Is that stuff&nbsp;
that's in the works? 
 
 

00:28:48.360 --> 00:28:51.040
IMMORLICA: We have a few published papers on&nbsp;&nbsp;

00:28:51.040 --> 00:28:53.760
the area. I don't know if you&nbsp;
want me to get into them. 
 
 

00:28:53.760 --> 00:28:58.120
HUIZINGA: No, actually, what we'll probably&nbsp;
do is put some in the show notes. We'll link&nbsp;&nbsp;

00:28:58.120 --> 00:29:02.280
people to those papers because I think&nbsp;
that's an interesting topic. Listen,&nbsp;&nbsp;

00:29:02.280 --> 00:29:08.280
most research is incremental in nature, where the&nbsp;
ideas are basically iterative steps on existing&nbsp;&nbsp;

00:29:08.280 --> 00:29:15.000
work. But sometimes there are out-of-the-box ideas&nbsp;
that feel like bigger swings or even outrageous,&nbsp;&nbsp;

00:29:15.000 --> 00:29:20.640
and Microsoft is well known for making room for&nbsp;
these. Have you had an idea that felt outrageous,&nbsp;&nbsp;

00:29:20.640 --> 00:29:24.640
any idea that felt outrageous, or is there&nbsp;
anything that you might even consider&nbsp;&nbsp;

00:29:24.640 --> 00:29:28.040
outrageous now that you're currently&nbsp;
working on or even thinking about? 
 
 

00:29:28.040 --> 00:29:31.560
IMMORLICA: Yeah, well, I mean, this&nbsp;
whole moment in history feels outrageous,&nbsp;&nbsp;

00:29:31.560 --> 00:29:37.160
honestly! [LAUGHTER] It's like I'm kind of&nbsp;
living in the sci-fi novels of my youth. 
 
 

00:29:37.160 --> 00:29:38.080
HUIZINGA: Right? 
 
 

00:29:38.080 --> 00:29:44.720
IMMORLICA: So together with my economics and&nbsp;
social science colleagues at Microsoft Research,&nbsp;&nbsp;

00:29:44.720 --> 00:29:50.440
one thing that we're really trying to think&nbsp;
through is this outrageous idea of agentic AI.  
 
 

00:29:50.440 --> 00:29:50.629
HUIZINGA: Mmm ... 
 
 

00:29:50.629 --> 00:29:57.800
IMMORLICA: That is, every single individual&nbsp;
and business can have their own AI that acts&nbsp;&nbsp;

00:29:57.800 --> 00:30:03.040
like their own personal butler that knows them&nbsp;
intimately and can take actions on their behalf.&nbsp;&nbsp;

00:30:03.040 --> 00:30:08.880
In such a world, what will become of the internet,&nbsp;
social media, platforms like Amazon, Spotify,&nbsp;&nbsp;

00:30:08.880 --> 00:30:16.320
Uber? On the one hand, you know, maybe this is&nbsp;
good because these individual agentic AIs can&nbsp;&nbsp;

00:30:16.320 --> 00:30:22.280
just bypass all of these kinds of intermediaries.&nbsp;
For example, if I have a busy day of back-to-back&nbsp;&nbsp;

00:30:22.280 --> 00:30:28.360
meetings at work, my personal AI can notice that&nbsp;
I have no time for lunch, contact the AI of some&nbsp;&nbsp;

00:30:28.360 --> 00:30:33.560
restaurant to order a sandwich for me, make&nbsp;
sure that sandwich is tailored to my dietary&nbsp;&nbsp;

00:30:33.560 --> 00:30:38.200
needs and preferences, and then contact&nbsp;
the AI of a delivery service to make sure&nbsp;&nbsp;

00:30:38.200 --> 00:30:42.646
that sandwich is sitting on my desk when&nbsp;
I walk into my noon meeting, right. 
 
 

00:30:42.646 --> 00:30:42.669
HUIZINGA: Right ... 
 
 

00:30:42.669 --> 00:30:46.440
IMMORLICA: And this is a huge disruption to&nbsp;
how things currently work. It's shifting the&nbsp;&nbsp;

00:30:46.440 --> 00:30:52.400
power away from centralized platforms, back&nbsp;
to individuals and giving them the agency&nbsp;&nbsp;

00:30:52.400 --> 00:30:57.440
over their data and the power to leverage&nbsp;
it to fulfill their needs. So the, sort of,&nbsp;&nbsp;

00:30:57.440 --> 00:31:01.760
big questions that we're thinking about right&nbsp;
now is, how will such decentralized markets&nbsp;&nbsp;

00:31:01.760 --> 00:31:06.480
work? How will they be monetized? Will it be&nbsp;
a better world than the one we live in now,&nbsp;&nbsp;

00:31:06.480 --> 00:31:11.880
or are we losing something? And if it is a better&nbsp;
world, how can we get from here to there? And if&nbsp;&nbsp;

00:31:11.880 --> 00:31:15.880
it's a worse world, how can we steer the&nbsp;
ship in the other direction, you know?  
 
 

00:31:15.880 --> 00:31:16.560
HUIZINGA: Right. 
 
 

00:31:16.560 --> 00:31:20.440
IMMORLICA: These are all very&nbsp;
important questions in this time. 
 
 

00:31:20.440 --> 00:31:25.160
HUIZINGA: Does this feel like it's imminent? 
 
 

00:31:25.160 --> 00:31:30.960
IMMORLICA: I do think it's imminent. And I think,&nbsp;
you know, in life, you can, kind of, decide&nbsp;&nbsp;

00:31:30.960 --> 00:31:35.470
whether to embrace the good or embrace the bad,&nbsp;
see the glass as half-full or half-empty, and … 
 
 

00:31:35.470 --> 00:31:36.225
HUIZINGA: Yeah. 
 
 

00:31:36.225 --> 00:31:39.680
IMMORLICA: … I am hoping that society&nbsp;
will see the half-full side of these&nbsp;&nbsp;

00:31:39.680 --> 00:31:44.580
amazing technologies and leverage them to&nbsp;
do really great things in the world. 
 
 

00:31:44.580 --> 00:31:50.680
HUIZINGA: Man, I would love to talk to you for&nbsp;
another hour, but we have to close things up.&nbsp;&nbsp;

00:31:50.680 --> 00:31:55.280
To close this show, I want to do something&nbsp;
new with you, a sort of lightning round of&nbsp;&nbsp;

00:31:55.280 --> 00:32:01.000
short questions with short answers that give us a&nbsp;
little window into your life. So are you ready? 
 
 

00:32:01.000 --> 00:32:02.000
IMMORLICA: Yup! 
 
 

00:32:02.000 --> 00:32:06.160
HUIZINGA: OK. First one, what are&nbsp;
you reading right now for work? 
 
 

00:32:06.160 --> 00:32:11.720
IMMORLICA: Lots of papers of my students that are&nbsp;
on the job market to help prepare recommendation&nbsp;&nbsp;

00:32:11.720 --> 00:32:16.800
letters. It's actually very inspiring to see&nbsp;
the creativity of the younger generation. In&nbsp;&nbsp;

00:32:16.800 --> 00:32:23.400
terms of books, I'm reading the Idea Factory,&nbsp;
which is about the creation of Bell Labs. 
 
 

00:32:23.400 --> 00:32:25.580
HUIZINGA: Ooh! Interesting! 
 
 

00:32:25.580 --> 00:32:28.880
IMMORLICA: You might be interested in&nbsp;
it actually. It talks about the value&nbsp;&nbsp;

00:32:28.880 --> 00:32:33.360
of theory and understanding the&nbsp;
fundamentals of a problem space&nbsp;&nbsp;

00:32:33.360 --> 00:32:37.260
and the sort of business value of&nbsp;
that, so it's very intriguing.  
 
 

00:32:37.260 --> 00:32:41.400
HUIZINGA: OK, second question. What&nbsp;
are you reading for pleasure? 
 
 

00:32:41.400 --> 00:32:46.360
IMMORLICA: The book on my nightstand right now&nbsp;
is the Epic of Gilgamesh, the graphic novel&nbsp;&nbsp;

00:32:46.360 --> 00:32:52.960
version. I'm actually quite enthralled by graphic&nbsp;
novels ever since I first encountered Maus by Art&nbsp;&nbsp;

00:32:52.960 --> 00:32:59.040
Spiegelman in the ’90s. But my favorite reading&nbsp;
leans towards magic realism, so like Gabriel&nbsp;&nbsp;

00:32:59.040 --> 00:33:05.640
García Márquez, Italo Calvino, Isabel Allende, and&nbsp;
the like. I try to read nonfiction for pleasure,&nbsp;&nbsp;

00:33:05.640 --> 00:33:10.230
too, but I generally find life is a bit&nbsp;
too short for that genre! [LAUGHTER] 
 
 

00:33:10.230 --> 00:33:14.720
HUIZINGA: Well, and I made an assumption that&nbsp;
what you were reading for work wasn't pleasurable,&nbsp;&nbsp;

00:33:14.720 --> 00:33:20.160
but um, moving on, question number three,&nbsp;
what app doesn't exist but should? 
 
 

00:33:20.160 --> 00:33:21.560
IMMORLICA: Teleportation. 
 
 

00:33:21.560 --> 00:33:26.200
HUIZINGA: Ooh, fascinating. What&nbsp;
app exists but shouldn't? 
 
 

00:33:26.200 --> 00:33:30.960
IMMORLICA: That's much harder for me. I think&nbsp;
all apps within legal bounds should be allowed&nbsp;&nbsp;

00:33:30.960 --> 00:33:36.480
to exist and the free market should decide which&nbsp;
ones survive. Should there be more regulation of&nbsp;&nbsp;

00:33:36.480 --> 00:33:41.520
apps? Perhaps. But more at the level of giving&nbsp;
people tools to manage their consumption at&nbsp;&nbsp;

00:33:41.520 --> 00:33:47.480
their own discretion and not outlawing specific&nbsp;
apps; that just feels too paternalistic to me. 
 
 

00:33:47.480 --> 00:33:51.160
HUIZINGA: Interesting. OK,&nbsp;
next question. What's one&nbsp;&nbsp;

00:33:51.160 --> 00:33:56.200
thing that used to be very important&nbsp;
to you but isn't so much anymore? 
 
 

00:33:56.200 --> 00:34:03.400
IMMORLICA: Freedom. So by that I mean the&nbsp;
freedom to do whatever I want, whenever I want,&nbsp;&nbsp;

00:34:03.400 --> 00:34:08.360
with whomever I want. This feeling that I could&nbsp;
go anywhere at any time without any preparation,&nbsp;&nbsp;

00:34:08.360 --> 00:34:13.520
that I could be the Paul Erdős of the&nbsp;
21st century, traveling from city to city,&nbsp;&nbsp;

00:34:13.520 --> 00:34:18.600
living out of a suitcase, doing beautiful&nbsp;
math just for the art of it. This feeling&nbsp;&nbsp;

00:34:18.600 --> 00:34:23.440
that I have no responsibilities. Like,&nbsp;
I really bought into that in my 20s. 
 
 

00:34:23.440 --> 00:34:25.280
HUIZINGA: And not so much now? 
 
 

00:34:25.280 --> 00:34:26.420
IMMORLICA: No. 
 
 

00:34:26.420 --> 00:34:31.000
HUIZINGA: OK, so what's one thing that&nbsp;
wasn't very important to you but is now? 
 
 

00:34:31.000 --> 00:34:36.800
IMMORLICA: Now, as Janis Joplin sang,&nbsp;
“Freedom is just another word for nothing&nbsp;&nbsp;

00:34:36.800 --> 00:34:43.120
left to lose.” [LAUGHTER] And so now it's&nbsp;
important to me to have things to lose—roots,&nbsp;&nbsp;

00:34:43.120 --> 00:34:47.440
family, friends, pets. I think this is&nbsp;
really what gives my life meaning. 
 
 

00:34:47.440 --> 00:34:52.120
HUIZINGA: Yeah, having Janis Joplin cited in&nbsp;
this podcast wasn't on my bingo card either,&nbsp;&nbsp;

00:34:52.120 --> 00:34:59.800
but that's great. Well, finally, Nicole,&nbsp;
I want to ask you this question based on&nbsp;&nbsp;

00:34:59.800 --> 00:35:02.600
something we talked about before.&nbsp;
Our audience doesn’t know it,&nbsp;&nbsp;

00:35:02.600 --> 00:35:08.220
but I think it’s funny. What do Norah Jones&nbsp;
and oatmeal have in common for you?  
 
 

00:35:08.220 --> 00:35:14.600
IMMORLICA: Yeah, so I use these in conversation&nbsp;
as examples of comfort and nostalgia in the&nbsp;&nbsp;

00:35:14.600 --> 00:35:19.840
categories of music and food because I&nbsp;
think they're well-known examples. But&nbsp;&nbsp;

00:35:19.840 --> 00:35:25.880
for me personally, comfort is the Brahms Cello&nbsp;
Sonata in E Minor, which was in fact my high&nbsp;&nbsp;

00:35:25.880 --> 00:35:33.320
school cello performance piece, and nostalgia&nbsp;
is spaghetti with homemade marinara sauce,&nbsp;&nbsp;

00:35:33.320 --> 00:35:38.680
either my boyfriend's version or, in my&nbsp;
childhood, my Italian grandma's version. 
 
 

00:35:38.680 --> 00:35:45.240
HUIZINGA: Man! Poetry, art, cooking, music ...&nbsp;
who would have expected all of these to come&nbsp;&nbsp;

00:35:45.240 --> 00:35:52.760
into an economist/computer scientist podcast on&nbsp;
the Microsoft Research Podcast. Nicole Immorlica,&nbsp;&nbsp;

00:35:52.760 --> 00:35:56.500
how fun to have you on the show! Thanks&nbsp;
for joining us today on Ideas! 
 
 

00:35:56.500 --> 00:36:16.880
IMMORLICA: Thank you for having me. 
 
 

00:36:16.880 --> 00:36:17.390
[MUSIC]

