General Seminar - Keaton Ellis

Should I State or Should I Show? Aligning AI with Human Preferences

The proliferation of AI agents introduces a new principal-agent problem which stems from human principals' difficulty in articulating preferences. We report results from an experiment focused on mitigating this problem via revealed preferences from choice data. Compared to stated preference from human-written prompts, individuals communicate their preferences more effectively through choices, with as few as two sufficing to match prompts' predictive value. This gap largely reflects subjects' difficulty in translating preferences into prompts and is largest among those exhibiting more Allais-type behavioral patterns. Subjects also misperceive the approaches' relative performance, often choosing the less accurate one.