BSML

ChatGPT and large language models (LLMs) have transformed how we work. In particular, they boost our productivity in tasks that have clear goals and known methods.

However, current LLMs fail to understand the cause-effect relationships of the real world. This makes them inadequate for situations that require higher-level thinking, such as decision making under uncertainty.

The ION Management Science Lab (IMSL) from SDA Bocconi addresses this challenge in the context of business strategy. They research decision making frameworks and develop tools with LLMs and AI agents that allow entrepreneurs to generate, simulate, and test new business theories of value.

We discussed a wide range of topics, including:

• Decisions under uncertainty – the typical challenge for managers/entrepreneurs
• Large Language Models – a rich source of knowledge up to the present
• Bayesian Causal Networks – a probabilistic representation of theories of values
• AI Agents – the future of AI products, with LLMs as commodities
• Internship opportunities at IMSL

Many thanks to Saeid Kazemi, Claudia Frosi, and Abhinav Pandey for the inspiring presentation. It was a pleasure hosting you and we look forward to future collaborations.