arXiv:2605.23944v1 Announce Type: new 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.

arXiv:2605.23958v1 Announce Type: cross Abstract: M365 Copilot is used every week by millions of people across more than a million companies around the world as part of their workflows. Uniquely positioned in the AI landscape given its near-exclusive use for work purposes, M365 Copilot can offer a clear picture of how people use AI for work and where that usage may expand next. This paper characterizes that usage through direct classification of user interactions with M365 Copilot Chat. Based on an anonymized and privacy-preserving analysis of a sample of approximately 5.5 million sessions, we combine a learned classification of user intent with a classification of O*NET work activities done with M365 Copilot Chat. We find that M365 Copilot is emerging as an everyday assistant for knowledge work: writing dominates, but users also rely on it for information retrieval, analysis, decision making and strategizing, and evaluating and diagnosing programs and systems, among others. Information seeking tasks remain common, but time trends suggest a relative shift away from ``chat as search'' and toward content and communication-related work. Comparisons across occupational groupings and to work done in the labor market further show that usage is broad but uneven, where the relative share of work done with M365 Copilot Chat cuts across jobs in some cases and is occupation-specific in others. Areas of relative underrepresentation in the labor market suggest the next frontier for enterprise AI adoption.