Organizations: Columbia Business School, Columbia University · Amazon.com Inc.
Abstract
We model the interaction between a user and an AI driven recommendation system. The user initiates the process by conveying preference information through a costly and noisy message. The AI assistant, acting as a Bayesian agent, interprets the user's message to form a posterior belief about their true preferences and make product recommendations. In particular, it determines how many recommendations to present so as to maximize the user's expected utility from their final choice, while accounting for the search cost induced by the size of the recommendation set. We use mutual information based cost functions to model the two distinct costs incurred by the user during the interaction: (i) a communication cost, which increases with the precision of their preference message, and (ii) a search cost, which increases with the size of the recommendation set provided by the AI assistant. We study products and preferences which live in d dimensional space, and ask how the user's expected payoff can be maximized. For large d, we characterize how optimal message precision and recommendation set size depend on the cost parameters, under two distinct distributions from which recommendations can be sampled from the product universe: (i) Bayes' posterior belief, and (ii) an optimized tilted distribution. Under the posterior sampling scheme (i), we identify a hybrid regime, in which an efficient interaction policy requires jointly optimizing the amount of information (in bits) conveyed by the user and the number of recommendations provided by the AI assistant. In the tilted sampling scheme (ii), our results show that the optimal interaction policy uses only one of communication and search, favoring whichever of them is less costly.
Search and recommendation serve a shared discovery objective but encode intent differently. We study this boundary through Dear Algo on Threads, a deployed product where open-ended requests such as \emph{more NBA news} or \emph{less politics} steer subsequent feed recommendations rather than return a one-shot result list. Its agentic intent layer compiles explicit, inferred, negative, and compound intent into a grounded executable plan, then invokes conventional retrieval and optional semantic or multimodal reranking. The layer shares an intent-to-retrieval contract without requiring one model or serving path across search-like and recommendation-like modes. We evaluate Dear Algo under a precision-first objective. In a blinded audit of 300 public request-item pairs (296 evaluable), a strict categorical LLM-as-a-judge gate achieved 94.4% exact-Relevant precision [88.8%, 98.9%]. Across 72 normalized request clusters, the full configuration produced 7.73 judge-qualified candidates per 20 slots versus 6.61 for an LLM-derived-query baseline, a gain of 1.11 [0.12, 2.12]. In a candidate-randomized serving-path study restricted to the reranker path's first 72 eligible hours, the user-weighted judge-Irrelevant share among judged admissions was 2.80% versus 4.78% off (-1.97 points [-3.02, -0.94]), while Exact-Relevant share was 2.24 points higher [0.08, 4.41]. Together, these studies show how explicit natural-language intent can be carried into feed recommendation under a precision-first evaluation framework
Agents typically assume an expert user -- one with well-formed preferences about what they want -- and default to clarifying questions whenever the task is underspecified. We argue this assumption is unrealistic. Users often lack the domain knowledge to have completely specified preferences; if asked about their preference on some feature, the user may be unable to answer without the agent helping the user to learn some domain knowledge needed to form a preference for that feature, e.g., via examples or explanations. To formalize these principles, we draw on the Search-Experience-Credence framework from Information Economics to introduce CoPref, a model of how users construct preferences based on agent dialog actions. We then study these ideas concretely in agentic recommender systems, proposing CoShop, an interactive benchmark. In CoShop, an agent converses with and makes recommendations for a CoPref user. The agent's performance depends on whether it can help the user gain the knowledge needed to specify the task well. Evaluating five frontier models, we find that no agent exceeds 56% accuracy on CoShop despite five turns of interaction. Failures stem not from agents' ability to find items, but from how little the interaction expands what users know about what they want.
Conversational product search assistants offer a more expressive, natural, and interactive alternative to traditional keyword-based product search. With limited screen space, showing only a few items increases the need for precise preference elicitation, which can prolong conversations, leading to user frustration and session abandonment. Conversely, rushing to recommend items without a clear understanding of preferences risks poor matches and a degraded user experience. We present Dialogue to Discovery (D2D), an attribute-oriented preference elicitation framework that dynamically exploits the structure of product attributes to efficiently steer conversations toward the user's desired item. D2D adaptively prioritizes the most informative queries and strategically times product recommendations, reducing premature or off-target suggestions that harm engagement. To evaluate D2D, we curate three datasets from the Amazon Reviews corpus. In simulated conversations modelled using a multi-factor utilitarian patience framework, D2D achieves a 22.2-29.9% improvement in target-finding accuracy, 6.6-16.1% reduction in abandonment, and 27.5% shorter average conversations over the state-of-the-art baselines. A complementary user study further confirms significant gains in both user satisfaction and perceived efficiency.