Delegation and Verification Under AI

As AI systems enter institutional workflows, workers must decide whether to delegate task execution to AI and how much effort to invest in verifying AI outputs, while institutions evaluate workers using outcome-based standards that may misalign with workers' private costs. We model delegation and verification as the solution to a rational worker's optimization problem, and define worker quality by evaluating an institution-centered utility (distinct from the worker's objective) at the resulting optimal action. We formally characterize optimal worker workflows and show that AI induces *phase transitions*, where arbitrarily small differences in verification ability lead to sharply different behaviors. As a result, AI can amplify workers with strong verification reliability while degrading institutional worker quality for others who rationally over-delegate and reduce oversight, even when baseline task success improves and no behavioral biases are present. These results identify a structural mechanism by which AI reshapes institutional worker quality and amplifies quality disparities between workers with different verification reliability.

The Role of Diversity in In-Context Learning for Large Language Models

In-context learning (ICL) is a crucial capability of current large language models (LLMs), where the selection of examples plays a key role in performance. While most existing approaches focus on selecting the most similar examples to the query, the impact of diversity in example selection remains underexplored. We systematically investigate the role of diversity in in-context example selection through experiments across a range of tasks, from sentiment classification to more challenging math and code problems. Experiments on Llama-3.1, Gemma-2, and Mistral-v0.3 families of models show that diversity-aware selection methods improve performance, particularly on complex tasks like math and code, and enhance robustness to out-of-distribution queries. To support these findings, we introduce a theoretical framework that explains the benefits of incorporating diversity in in-context example selection.