MIT Initiative on the Digital Economy

Ready to explore quantum’s early real-world applications??#Quantum computing is already making an impact in #finance, #pharmaceuticals, #energy, and logistics—but it’s not a replacement for classical #computing. So how should companies think about using it today? Join us at the first-ever Business of Quantum Summit on April 4 at #MIT for an exciting session on the real-world applications of #quantumcomputing, featuring experts who are leading the way in the field. "Quantum Business Applications" Session Panelists: ?? Michael Cusumano – SMR Distinguished Professor of Management, MIT Sloan School of Management (Session Moderator) ?? Juliette Peyronnet – U.S. General Manager, Alice & Bob ?? Yudong Cao – Head of Quantum and AI, BCG X ?? Elizabeth Rossi - Quantum AI External Affairs, Google ?? Elton Zhu – VP, Quant Research | Fidelity Center for Applied Technology?(FCAT) ?? Learn more and Register Now: https://lnkd.in/eQ6tyi4q

Interested in how Quantum Technologies might impact your organization? Join us for the Business of Quantum Summit at Massachusetts Institute of Technology on 4th April. We'll explore recent Quantum Computing developments, the promise of Quantum Networks and the immediate implications of Post Quantum Cryptographic standards. Hear from experts across research (MIT Department of Physics, National Institute of Standards and Technology (NIST)), leading firms (Google, NVIDIA Microsoft), industry (Fidelity Investments, Accenture, BCG X), pioneering startups (Alice & Bob, Quantum Network Technologies, Lightsynq) and more. With thanks to MIT Initiative on the Digital Economy, Center for Quantum Networks, MIT Sloan School of Management, National Science Foundation (NSF).

We just facilitated over 120,000 AI Agent Negotiations across multiple diverse scenarios and objectives as part of an International AI Negotiations Competition cosponsored by the MIT Initiative on the Digital Economy in which participants iteratively designed and refined prompts for negotiation agents. Our findings revealed that... 1) Fundamental principles from established human-human negotiation theory remain crucial in AI-AI negotiations. Specifically, 2) AI agents exhibiting high warmth fostered higher counterpart subjective value and reached deals more frequently, which enabled them to create and claim more value in integrative settings (who says AI agents are only rational optimizers?). However, 3) Conditional on reaching a deal, warm agents claimed less value while dominant agents claimed more value. These results align with classic negotiation theory emphasizing relationship-building, assertiveness, and preparation. 4) Our analysis also revealed unique dynamics in AI-AI negotiations not fully explained by negotiation theory, particularly regarding the effectiveness of AI-specific strategies like chain-of-thought reasoning and prompt injection. 5) The agent that won our competition implemented an approach that blended traditional negotiation preparation frameworks with AI-specific methods. Together, these results suggest the importance of establishing a new theory of AI negotiations that integrates established negotiation theory with AI-specific strategies to optimize agent performance. Our research suggests this new theory must account for the unique characteristics of autonomous agents and establish the conditions under which traditional negotiation theory applies in automated settings. The paper, coauthored with Jared Curhan Michelle Vaccaro Michael Caosun and Harang Ju, can be found here: Advancing AI Negotiations: New Theory and Evidence from a Large-Scale Autonomous Negotiations Competition https://lnkd.in/ez8kaUEY We thank iDecisionGames for providing the technical platform, OpenAI for model access, and the institutional support from the MIT Initiative on the Digital Economy, MIT Sloan Executive Education, and the MIT Office of Teaching and Learning. We are also very grateful to all participants in the MIT Negotiations Competition for their engagement and creativity. Their innovative approaches significantly contributed to our understanding of AI negotiation dynamics. As always, thoughts and comments highly encouraged! Wondering especially what Erik Brynjolfsson Edward McFowland III Iavor Bojinov John Horton Karim Lakhani Azeem Azhar Sendhil Mullainathan Nicole Immorlica Alessandro Acquisti Ethan Mollick Katy Milkman and others think!

Announcing TWO BIG HIRES! We're stepping on the gas here in the IT Group at the MIT Sloan School of Management and the MIT Initiative on the Digital Economy! Recently, we've been quiet, heads down, building over the last two years and, today, are proud to announce two big hires: Michiel Bakker and Alessandro Acquisti! Michiel Bakker (who joined us this year) is an AI safety researcher and computational social scientist focusing on AI alignment, societal impacts of AI, and AI’s role in human-human and human-computer interaction. He is an Assistant Professor at the MIT Sloan School of Management, and affiliated with MIT’s Institute for Data, Systems & Society and the MIT Center for Constructive Communication based at the MIT Media Lab. Michiel is also a senior research scientist at Google DeepMind. He holds a Master’s and PhD degree in computer science from MIT, and a Bachelor’s and Master’s degree in physics from Delft University of Technology. Alessandro Acquisti (who will join us in September) is currently the Trustees Professor of Information Technology and Public Policy at the Heinz College, Carnegie Mellon University (CMU). He is an Andrew Carnegie Fellow (inaugural class), the director of the PeeX (Privacy Economics Experiments) lab at CMU, a member of the steering committee of CMU’s Center for Behavioral and Decision Research (CBDR), and the Faculty Chair of the Heinz College’s Master of Science in Information Security Policy & Management (MISPM) program. He is the current Chair of CMU Institutional Review Board (IRB). Previously, for four years he was the Faculty Director of the CMU Digital Transformation and Innovation Center sponsored by PwC (where he managed a multi-million dollar budget to fund CMU research in areas including analytics, security, and public policy), and the PwC William W. Cooper Professor of Risk and Regulatory Innovation. Alessandro has been a member of the Board of Regents of the U.S. National Library of Medicine (NLM), and a member of the U.S. National Academies' Committee on public response to alerts and warnings using social media.?Alessandro holds a PhD from UC Berkeley, and Master degrees from UC Berkeley, the London School of Economics, and Trinity College Dublin. While Michiel is on the cutting edge of AI Alignment, Alessandro is a world leader in data privacy and related fields... We could not think of two more important topics or two more important intellectual leaders. Thomas Malone Wanda Orlikowski John Horton Abdullah Almaatouq Manish Raghavan and I could not be more thrilled to welcome these two amazing thought leaders to the IT Group!

Excited to speak at the Business of Quantum Summit at MIT on April 4 and discuss the evolving quantum landscape!

At this year's MIT Platform Strategy Summit, I'm organizing a panel titled: "National Security and the Circular Economy: The Role of Digital Platforms in Critical Material Reverse Supply Chains” The idea is to explore how digital platforms can contribute to national material security and advance circular supply chains. As global supply chains face increasing challenges from resource scarcity, trade tensions, and environmental concerns, digital platforms that provide reverse logistics offer a way to create more resilient, sustainable, and efficient material supply systems.?In the electronics industry, digital platforms are transforming e-waste management through advanced collection systems. Circular platforms can support the reaggregation of critical materials from other areas as well, such as EV batteries and industrial magnets, which are also sources of rare earth metals. More generally, circular platforms can potentially play a crucial role in advancing ‘digital mining’—the process of extracting critical materials from urban waste streams and secondary markets—by creating efficient ecosystems that connect buyers and sellers of used or recycled materials. Platforms can reaggregate materials from fragmented secondary markets, enabling real-time matching of supply (e.g., recycled metals, end-of-life electronics) and demand (e.g., manufacturers needing critical minerals). This panel will also be a chance to explore how digital platforms can benefit from rapid innovation in tools such as AI, computer vision, and digital product passports enabling real-time traceability, transparency, and optimization across circular supply chains. The future of resource security lies not in extracting more but in innovating smarter ways to reclaim what we already have. If your company is exploring these issues, drop me a note. I'd love to discuss this speaking opportunity. The annual MIT Platform Strategy Summit will take place this year on July 17th at the Schwarzman College of Computing?Building. #platformstrategy #platforms #criticalminerals #circularsupplychains #circulareconomy #reverselogistics #digitaltransformation #digitalmines #ITAD #recycling #rareearthminerals

???The March edition of the MIT Initiative on the Digital Economy Newsletter is here! This month, we’re diving into: ???The Business of Quantum Summit – April 4 @ MIT?→ Join us for groundbreaking discussions on how #quantum technologies will shape #finance, #healthcare, and beyond. Explore the speaker lineup and agenda and register today! ???How AI Enhances Human Decision-Making?→ New research on how AI-powered tools improve strategic thinking, with lessons for businesses integrating #AI. ???Sinan Aral on Yahoo Finance?→ A deep dive into the future of #quantumcomputing and what it means for the #techindustry. Stay ahead of the latest in AI, quantum, and digital transformation.?Access the newsletter and subscribe today!

These 5 goals make MIT Sloan Action Learning labs a critical part of management education: Apply classroom theories to real-world challenges? “This experience has equipped me with valuable hands-on experience and new skills critical for my professional development. It’s taught me how to approach complex problems with a strategic mindset, prioritize robustness in analytics solutions, and effectively collaborate with a diverse team. Being able to showcase this experience to potential employers will highlight my practical experience in problem-solving and teamworking.” – Jan Girgott, MBAn ’24, Analytics Lab Structure and solve problems “I’d never really done this type of project, where you have a problem, scope it, and see it through from beginning to end. I had always pictured it as massive and overwhelming. The experience of realizing it was achievable and going through the steps in class with faculty mentors, was really instrumental.” – Sarah Schmid, MBA ’25, Enterprise Management Lab Collaborate effectively in teams “That’s one of the things about the entire experience of MIT Sloan Action Learning and the Executive MBA. You get passionate people who want to solve big problems from disparate backgrounds. Bring them together and you can invent the future.” – Max Wilson, EMBA ’22, Sustainable Business Lab Learn to lead through ambiguous and unstructured situations “My primary goal was to gain insights into go-to-market strategy and entrepreneurship. This course exceeded my expectations, teaching me vital skills and boosting my confidence in tackling unfamiliar challenges.” – Gabriella Jennett, MBA ’24, Global Entrepreneurship Lab Reflect for personal and professional growth “This experience has equipped me with the skills, knowledge, and confidence to tackle complex business problems and make meaningful contributions in my future endeavors. I am immensely grateful for the opportunity and look forward to applying the lessons learned to drive positive change in the world of business and beyond.” – Phoon Hee Yau, SFMBA ’24, Proseminar in Corporate Finance, Investment Banking, and Private Equity ?MIT Sloan School of Management Admissions, MIT Executive MBA Program, MIT Sloan CDO, MIT Initiative on the Digital Economy, MIT Sloan Sustainability Initiative

Adopting artificial intelligence takes time and proper leadership. Heads of generative AI manage how companies use the technology to manage people and help set the right tone. https://lnkd.in/e2NU-jpW

MIT Initiative on the Digital Economy Lunch Seminars return for the Spring 2025 semester! We're excited to be joined by Mengxin Wang for her talk "Large Language Models for Market Research: A Data-augmentation Approach" next Wednesday, March 5 at noon. If you're on #MIT campus, stop by and join us in person, or join virtually from anywhere. Register now! In-person Tickets: https://lnkd.in/eCB6uKtz Online Tickets: https://lnkd.in/eJeMu9qy