Muhammad Rafay Azhar, Yuhang Zhou, Gilbert Jiang +7cs.CL
Production recommender systems shape what billions of people see, and sustaining their performance requires continual optimization: as content, user behavior, and upstream models shift, the choices governing retrieval, ranking, and serving must be revisited. Traditionally, human engineers test such changes through online experiments--a slow, reactive process limited by engineering effort, leaving parts of the system unrevised as conditions change. Although large language models have been applied to ranking, user modeling, and offline model development, few systems place an agent in a continual closed loop that acts on a live recommender and learns from the measured effects of its decisions. We present CORAL (Constraint-Optimized Recommender via an Agentic Loop), an LLM-native harness that closes this loop: each cycle, the agent observes operating signals, reasons over a memory of past decisions and outcomes, and invokes tools--including a numerical optimizer that keeps changes within a fixed operating budget--to reconfigure the recommender, with measured outcomes informing the next cycle. We formulate this as a partially observed, non-stationary, constrained optimization problem in which the policy improves in context, without parameter updates, from its prior actions. Across two large-scale social platforms, evaluated with A/B experiments, the same harness improves engagement at no additional serving cost on one and reduces serving cost without degrading engagement on the other, spanning the engagement-efficiency frontier. Performance improves as the loop iterates, suggesting that a single agentic loop can automate continual optimization work traditionally performed by human algorithm engineers under explicit guardrails.
Advertising recommendation requires continuously tuning complex system parameters while balancing commercial returns and user experience. Recent work has introduced large language models (LLMs) with skill documents to assist this labor-intensive process, but skill optimization remains largely prompt-driven, lacking a principled mechanism to attribute rewards to specific document edits. To address this limitation, we propose Document-Mediated Reinforcement Learning (DMRL), a skill self-evolution framework that models skill document optimization as a sequence of structured editing actions. In DMRL, an upper-level agent performs controlled document edits, while a frozen lower-level task agent evaluates their effects through A/B testing. To address credit assignment and long-term outcomes, we introduce two key components: (1) Dual-Relative Policy Optimization (DRPO), a post-training policy optimization method for robust and risk-aware advantage estimation; and (2) Long-term Reward Predictor (LRP), which estimates long-term outcomes by modeling population heterogeneity with disentangled representation learning and cross-attention transfer. DMRL was deployed on a large-scale short-video ads platform and extensive empirical evaluation shows that DMRL outperforms state-of-the-art baselines across key advertising metrics
A/B testing is the gold standard for evaluating product changes, but each experiment requires real user traffic, engineering effort, and weeks of measurement. We propose a simulation framework that predicts A/B test outcomes using LLM-powered agents conditioned on data-driven personas grounded in real user behavioral signals. Unlike prior work that relies on synthetic or rule-based personas, our agents are constructed from anonymized behavioral data-activity patterns, engagement signals, and inferred demographics-enabling more faithful population modeling. We frame A/B test simulation as a structured question task and systematically study (i) question design formats, (ii) the impact of persona data source and domain alignment, (iii) the trade-off between per-persona behavioral depth and population diversity, and (iv) efficient population subsampling. On a benchmark of 40 A/B tests spanning two metric types, our best configuration achieves 0.75-0.90 directional accuracy depending on the test metric, demonstrating that data-driven personas are a viable path toward fast, low-cost experiment pre-screening.
Bhavtosh Rath, Harshith Narasimhamurthy, Bob Eisinger +3cs.LG
E-commerce platforms increasingly personalize user experiences through machine learning, yet page layout decisions remain dominated by static rules and manual curation. We present a scalable bandit-based system that optimizes product page layouts in real time while preserving human control over design intent. A contextual bandit model dynamically selects the most effective layout for each session using user, item, and category-level features. The system leverages a LinUCB-based policy to balance exploration and exploitation as it learns from live user interactions. The architecture is designed for seamless integration into large-scale web serving stacks, supporting low-latency inference and continuous model updates. The system was first tested on entry product pages. In online A/B deployments on a major retail platform, our approach achieved positive lifts in session-level performance metrics over a strong heuristic baseline. Our results demonstrate that contextual bandits can effectively optimize visual and structural aspects of product discovery for user engagement, providing a scalable path toward learning-to-design the web.
Industrial recommenders give new content initial views through budgeted exploration, then use early performance to decide further delivery. On many short-video platforms, exploration is the primary way new videos reach viewers. Viewer-side tests measure consumption; the published budget objectives we review omit creator response. We analyze four experiments on a major short-video platform. An eight-month creator ablation finds production exploration raises videos posted per creator by 8.55% and creators posting at least once by 7.10% relative to a minimal floor. A budget-matched reallocation raises creator participation with no detectable short-run viewer-side change. A year-long viewer ablation finds 1.74% more video views but 2.13% less view time. A delivered view creates immediate feed value, can trigger organic take-up, and can induce creator supply. Take-up and supply replenish a shared corpus, creating two measurement limits. Viewer-side A/B tests cancel the corpus effect when both arms consume the same corpus. Giving each arm its own corpus avoids cancellation, but turnover still controls the horizon. If the corpus turns over at rate w per posting cycle, a t-cycle experiment expresses at most wt of the eventual corpus effect. More users reduce noise but do not speed turnover. Before the corpus path visibly bends, data cannot distinguish a modest fast effect from an arbitrarily large slow one, so a valid confidence interval may lack a finite upper endpoint. As predicted, the three-week co-diverted experiment cannot determine the sign of the eventual corpus effect. Within the window, it identifies the direct feed effect, and an exploratory cohort analysis detects organic lift after exploration ends. The experiments establish a positive creator response, measure the gross corpus flow visible within three weeks, and show the design and duration needed to identify total value.
Athanasios Vlontzos, David Gustafsson, Michael O'Riordan +1stat.ML cs.LG stat.ME
Recommendation impressions are a finite resource, hence delivering a recommendation to a user who would discover the content organically yields no incremental value and displaces other recommendations that could. We address this by extending an existing production recommendation model to a causal architecture using holdback data that is already collected as part of routine experimentation infrastructure, requiring no new data collection. A central challenge is that attribution windows differ between treated and holdback observations: treated users are attributed a stream within a short direct-response window, while holdback users are attributed organic streams over a multi-day window. This mismatch makes naive treatment-effect subtraction invalid. We resolve this with a dual-threshold targeting policy that delivers a recommendation only when the probability of a treated stream is high and the probability of organic stream is low. In a production-scale A/B test on millions of Spotify users, this policy reduces recommendation impressions by 7% with no statistically significant reduction in overall recommended content consumption. We further show that joint training with holdback data improves calibration of the treated head relative to the production baseline, and argue this can be taken as evidence that causal models learn more generalisable representations than models trained on observational data alone.
Online platforms increasingly compare many adaptive decision policies---ranking systems, recommendation algorithms, pricing rules, and language-model agents---while each reward-bearing interaction can be costly or risky. A direct A/B/n design gives each of $J$ policies its own horizon-$T$ trajectory and therefore uses $JT$ outcomes. We introduce Tree-Coupled A/B Testing (\TCAB), an exact feedback-sharing design for arbitrary history-dependent contextual-bandit policies. At each round, a predictable tree connects the current policy histories; every parent--child context--action law is maximally coupled, and one reward is shared within each component of matched tree edges. Every policy retains exactly its standalone finite-horizon trajectory law, even though the policies are deliberately dependent. If $D_{e,t}$ records a mismatch on tree edge $e$ at round $t$, the number of reward queries satisfies the pathwise identity $N(T)=T+\sum_{t,e}D_{e,t}$ and hence equals $T$ plus cumulative tree-edge total variation in expectation. This cost is conditionally optimal among exact edge-local designs on the selected tree, and a current-round minimum-spanning tree is myopically optimal among tree designs. For fixed $J$, sublinear pseudo-regret of every policy and almost-sure uniqueness of the oracle action imply $\mathbb{E}[N(T)]=T+o(T)$, versus $JT$ for independent runs. We also obtain finite-sample variance bounds for pairwise policy contrasts. Experiments on reward-model evaluation, multiple-choice language-model evaluation, and adaptive search policies demonstrate substantial improvements in the cost--precision frontier.
Changshuai Wei, John Bencina, Phuc Nguyen +2cs.LG cs.AI
Large-scale targeting and recommendation systems are typically built around predictive scores fed into heuristic or local allocation. When the business goal is incremental impact, as in marketing campaigns, incentives, and notifications, this paradigm systematically misallocates resources toward users who would have acted anyway. We present a decision-centric framework that instead optimizes causal effects under global constraints, aligning three components under a single objective: a causal neural network with a Transformer backbone for individual treatment-effect estimation, a Bayesian neural-bandit layer for uncertainty-aware exploration, and a dual-based large-scale linear-programming layer for constrained allocation. The framework also supports sequential context and multi-outcome, attribute-conditioned scoring through a Transformer encoder and outcome embeddings. We evaluate it with offline simulations on a public bandit dataset, targeted architectural ablations, and an online A/B test on LinkedIn Feed marketing traffic. We also distill production lessons on causal training-data construction and cost and delivery control, which were critical to successful deployment. The end-to-end treatment policy delivered a statistically significant $+7.20\%$ lift in the primary long-term-value metric, demonstrating the feasibility of production-scale causal optimization under business constraints.
Industrial recommendation strategy iteration heavily relies on large-scale A/B experimentation. Traditional tuning requires experts to repeatedly design strategies, configure experiments, analyze results, and adjust parameters, making the process labor-intensive and time-consuming. Meanwhile, valuable knowledge from historical experiments is often fragmented, making systematic reuse difficult through manual expert effort alone. Existing RAG agents partially alleviate this burden by retrieving prior strategies, but typically organize experience in a flat manner, overlooking the hierarchical relationships among business scenarios, recommendation stages, optimization objectives, and experimental contexts. This often results in mismatched retrieval and limited cross-scenario transfer, while preventing agents from continuously refining strategies and parameters through sequential A/B feedback. % To address these limitations, we propose A/B Agent, a closed-loop A/B agent for industrial recommendation strategy optimization. The framework comprises three tightly coupled core components: Historical Strategy Knowledge Organization, Autonomous Target-Aware Strategy Generation, and Experiment-Guided Strategy Self-Evolution. It organizes historical strategies into a hierarchical experience tree, retrieves transferable evidence through multi-path Tree-RAG to generate executable strategies, and continuously analyzes online A/B feedback to guide autonomous tuning and update the experience tree for self-evolution. Extensive offline and online evaluations demonstrate its effectiveness, including a 4.829% improvement in GMV in a real-world short-video e-commerce recommendation system while maintaining positive gains across all guardrail metrics.
Yuanyuan Shen, Yiren Yan, Wenjie Li +1cs.IR cs.LG cs.SI stat.ME
On two-sided content platforms, symmetric two-sided isolation (assigning matched fractions of creators and viewers to isolated treatment and control submarkets) is widely used for creator-side and cold-start experiments because it removes cross-arm marketplace interference. Isolation, however, thins each viewer's candidate catalog, and intuition suggests the resulting engagement cost should fade as the platform grows: a small fraction of a vast catalog is still vast. We show that, in an order-statistics model of engagement, whether this intuition holds depends on the upper tail of match quality. Extreme-value theory yields tail-class loss laws with a sharp dichotomy: for light or bounded tails the loss vanishes as the candidate pool grows, whereas under heavy tails it converges to a size-independent constant, so expanding the candidate pool, even by orders of magnitude, does not asymptotically eliminate the cost. Evidence from two production experiments on a platform with millions of active creators is consistent with this picture: a pure A/A traffic sweep reveals a measurable, depth-graded engagement cost; a one-sided catalog ablation independently shows that per-viewer thinning contributes to the loss; and a tail index calibrated on the small exploration pool predicts an effect consistent with the one observed in the far larger full-catalog ablation. Isolation thus carries a price that experimenters should budget for, like any other cost. We give practitioners a preflight procedure that estimates it before launch, sizes traffic accordingly, and recommends a fallback design when the predicted cost exceeds a chosen tolerance.
Han Wang, Alex Whitworth, Pak Ming Cheung +5cs.IR cs.LG
Relevance evaluation plays a crucial role in personalized search systems, serving as a guardrail alongside user engagement metrics to ensure that search results align with user queries and intent. While human annotation is the traditional method for relevance evaluation, its high cost and long turnaround time limit its scalability. In this work, we present a VLM-based automated relevance evaluation pipeline deployed within Pinterest Search for online A/B experiments. We rigorously validate the alignment between VLM-generated judgments and human annotations, demonstrating that VLMs can provide reliable relevance measurement for experiments while greatly improving the evaluation efficiency. Leveraging VLM-based labeling further unlocks opportunities to expand the query set, optimize sampling design, and efficiently assess a wider range of search experiences at scale. This approach leads to higher-quality relevance metrics and significantly reduces the Minimum Detectable Effects (MDEs) in online experiment measurements.
A/B testing remains the standard for rolling out new features in the technology industry. Each experiment, however, consumes real traffic, engineering effort, and weeks of wall-clock time. Can AI agents---conditioned on behavioral profiles and contextual descriptions of the intervention---simulate outcomes accurately enough to vet candidate treatments before committing live traffic? We formalize this question as a \emph{Simulated Randomized Controlled Trial} (S-RCT) and derive a two-layer error decomposition that separates agent approximation error from subsampling error, enabling targeted improvements to each. The framework is agent-agnostic: any behavioral model---from a fine-tuned specialist to a general-purpose foundation model---can serve as the simulation engine. Validated on 67 historical marketing A/B tests, a baseline S-RCT using an off-the-shelf foundation model captures directional signal (sign overlap 0.70) but systematically overshoots effect magnitudes. A two-phase pre-period calibration protocol reduces the squared prediction error (after removing irreducible measurement noise) by ${\sim}77\times$; a within-subject design---where each agent is exposed to both arms---reduces standard errors by ${\sim}2.4\times$. We discuss limitations of the current approach and identify applications where experimenters stand to benefit from agentic signals.
In many domains such as Palliative Care, Credit Assignment and Recommender Systems, predictions may causally influence the outcomes they predict. This phenomena is known as Outcome Performativity. This paper formalises an approach for detecting Outcome Performativity using prediction intervention called Outcome Performativity A/B Detection (OPAB). OPAB enables the detection of Outcome Performativity by assessing the dissimilarity in outcome distributions produced by different predictions groups (interventions). If that dissimilarity is significant, Outcome Performativity is detected. We derive sample complexity bounds for OPAB under various Outcome Performative assumption classes which we empirically validate. Results show that detecting Outcome Performativity using OPAB is achievable in numerous cases. Results also show the presence of regions of indistinguishability which describe settings where the allotted number of interventions are insufficient for detecting Outcome Performativity. The results of which have broader practical implications for the detectability of Outcome Performativity in settings where samples are scarce, cost-prohibitive or potentially unethical to obtain. The paper concludes with a case study on the efficacy of OPAB on the Open Bandits dataset, and provides directions for future work.
Kevin Lee, Benjamin Letham, Zhiyuan Jerry Lin +5cs.AI cs.LG
Ad creative optimization is increasingly constrained by evaluation rather than generation. Generative models can produce many plausible creatives, but reliable evaluation requires online experiments, in which only a limited slate can be tested. We study how to use data from historical A/B tests to generate and select the candidates in that slate. We developed and deployed a performance-driven offline-to-online workflow that guides creative generation with a predictive model as an inference-time critic. In the offline phase, we use a predictive model trained on historical experiments to rank and refine variants created by a generative model. A final test slate is then deployed in an online adaptive experiment. In a 50-arm field experiment, we found that the best creative generated with this method yielded 45.1% higher engagement than the best human-authored creative. Two additional experiments showed the same upper-tail pattern, with lifts of 46.7% and 36.2%. We found that despite the predictive model being too noisy to directly identify the best creative offline, it effectively guides the generative model toward creating strong candidates that can be efficiently evaluated in an adaptive experiment. The results suggest a design principle for creative optimization with generative models: use predictive models to guide generation of a slate to test, judge the slate by whether it contains high-performing candidates at a feasible test size, and use adaptive experiments to select among candidates while limiting traffic lost to weak arms.
The evolution of e-commerce has fundamentally transformed how users search for products, shifting from simple text-based keyword queries to complex multimodal interactions that seamlessly combine product images, natural language descriptions, and mixed-intent instructions. However, existing approaches face a critical dilemma: single-modal specialist models, deployed independently for text retrieval, visual search, and voice recognition, operate in isolation and cannot handle cross-modal queries, while general-purpose vision-language models lack the domain-specific knowledge necessary for fine-grained product understanding, user behavior modeling, and commercial intent reasoning. In this work, we present Pailitao-MMSearch, one native e-commerce multimodal search foundation model designed to bridge this gap. Our approach introduces three key innovations: (1)HybSID (Hybrid Semantic ID);(2)a two-stage continual pre-training strategy; and (3)a hybrid reasoning post-training pipeline. Built upon Qwen and deployed on Taobao's Pailitao multimodal search platform, Pailitao-MMSearch achieves substantial improvements in online A/B testing, including up to +13.61\% in Gross Merchandise Volume (GMV) and +8.21\% in transaction volume compared to traditional multi-modal search pipeline, demonstrating the effectiveness of our native e-commerce multimodal search large language models.
Online controlled experiments are the gold standard for hypothesis testing in online platforms. Notwithstanding their ubiquity, they are notoriously expensive to run, and issues of variance hamper statistical power in assessing treatment effects. While standard variance reduction techniques leverage model-based control variates to reduce outcome noise, they remain agnostic to potential structural relationships between competing policies. In this work, we identify a critical inefficiency in the standard A/B-testing protocol: when a treatment and control policy agree on an action, the resulting outcome contributes noise but no signal regarding the treatment effect -- unnecessarily inflating confidence intervals. We propose a novel experimental protocol that exploits this policy overlap to accelerate experimentation. The key insight is to frame the randomised treatment assignment mechanism as a meta-policy, and leverage $Δ$-Off-Policy Estimation methods to obtain unbiased estimates for average treatment effects. We prove analytically that our approach recovers standard A/B-testing practices in the general case, but that its variance scales with the divergence between policies rather than raw outcome variance. Hence, we dominate the standard Difference-in-Means estimator whenever policies have common support, and the improvement is strict whenever the overlap region contributes non-zero residual variance. Empirical results corroborate these theoretical insights -- holding promise for significant impact on the real-world evaluation of recommender systems, information retrieval pipelines, and large language model interfaces.
Dingsu Wang, Filip Ryzner, Kelly He +17cs.LG cs.IR
As recommender systems mature in the past few years, their optimization objectives have evolved from a primary focusing on short-term behavioral signals to a broader emphasis on long-term user engagement and retention. However, directly optimizing retention is difficult because return signals are sparse, delayed, and only partially attributable to earlier recommendations. Prior work has addressed this challenge with sequential modeling and reinforcement learning, but these approaches typically require task specific reward engineering, substantial computational overhead, and surface specific implementations that are difficult to generalize. In this paper, we present a unified, model-agnostic downstream reward framework for optimizing long-term user value in large-scale recommendation systems. First, we formulate the downstream reward learning problem and develop an offline screening framework to identify session level behaviors that are both observable early and predictive of future retention. We then propose several model-agnostic downstream rewards signals derived from observed user action patterns across multiple sources. We further discuss the engineering effort to productionize the proposed rewards derivations and challenges we faced when adding them to our ranking models. Online A/B experiments demonstrate consistent improvements in engagement and retention-related metrics, and the framework has been deployed across multiple Pinterest surfaces, including Homefeed, Related Pins, Search, and Notifications.
Personalization in two-sided marketplaces relies heavily on user-level features, yet for platforms with infrequent, high-consideration purchases, a large fraction of users lack sufficient history for effective recommendation, spanning both paid and organic channels. At Airbnb, a substantial share of search requests comes from logged-out or first-time users, with this challenge especially pronounced on paid-channel landing pages, leaving traditional user-level features unavailable for a large fraction of traffic. Privacy regulations and increasing restrictions on third-party cookies further limit identifier-based tracking for non-essential use cases. This paper introduces Proximity Features, a privacy-compliant feature system that groups users by geographic proximity using geo-IP data and an adaptive clustering algorithm, producing aggregated user-level signals for groups of approximately 1,000 nearby users without requiring a persistent individual identifier at inference time. Privacy is preserved by design: the pipeline operates on consented, aggregated data only within consent-gated privacy controls. The system is deployed in production at Airbnb, serving multiple surfaces including marketing landing pages and destination recommendation, with engagement emails integration under way. Online A/B experiments demonstrate statistically significant lifts in bookings, with the largest gains observed among users with absent or stale history.
In large-scale ride-hailing, hold control is a critical mechanism for improving passenger-driver experience. By selectively delaying certain driver-order pairs, the system waits for better opportunities, reduces cancellations, and mitigates wasted driver effort. However, existing industrial hold strategies often rely on heuristic thresholding over multiple predictive models, which can be brittle under non-stationary traffic and hard to optimize for multi-objective experience signals. We propose EXHOLD, a deployable two-stage framework decoupling experience-aware pair assessment from hold-time execution. In Stage I, we learn a decision model assigning each driver-order pair to discrete, interpretable experience tiers by optimizing a unified objective that aggregates satisfaction signals across the matching funnel. In Stage II, we solve for a monotone hold-time schedule via constrained optimization over empirical quantiles. This explicitly enforces service guardrails bounding the unnecessary holding of promising matches while maximizing overall experience improvement. We evaluate EXHOLD through randomized A/B experiments in DiDi's production system in Brazil. Results show consistent gains in marketplace efficiency and experience: EXHOLD increases trip completion and driver income, significantly reduces passenger cancellations, and improves funnel efficiency. Ablations and behavioral analyses confirm both stages are essential and that the policy makes calibrated decisions under spatiotemporal heterogeneity. EXHOLD is currently deployed, serving production traffic in Brazil.
Can a multimodal LLM predict which version of a web page will win a real A/B test from screenshots alone? We report the most complete answer we are aware of, from six weeks of pre-registered experiments on real conversion tests: mostly no -- and the exceptions are identifiable in advance. On 330 real A/B tests a Gemini 3 Flash judge reaches Cohen's kappa = 0.14, but on the trustworthy (statistically significant) half of the labels the evidence is inconclusive (kappa = 0.11, CI includes zero). We show that 44% of the "ground-truth" labels in a leading CRO agency's catalog come from non-significant tests, and that the judge agrees more with the unreliable labels than the reliable ones -- a shared prior between labeler and model, not prediction. Every standard improvement lever (a 2.8x more expensive frontier model, prompt redesign, stimulus fidelity, change-type priors) fails its pre-registered gate. The judge's confident calls are different: a vote-margin gate isolates a subset (49% coverage) reaching kappa = 0.31 on significant labels. We measure the mechanism directly -- judges differing in model or prompt agree with each other at kappa = 0.74-0.88 while agreeing with real outcomes at only ~0.2, so a 16-vote panel carries about 2 effective independent votes -- and we reproduce it in humans: 15 CRO experts agree with each other (inter-rater kappa = 0.53) but score at chance against real outcomes (kappa ~ 0). Consensus, human or model, is reproducible, persuasive, and not evidence. We release our pre-registrations, locked gates, negative results, statistical harness, human responses, and a claims ledger in which every number carries an evidence tier.
Changxin Lao, Fei Pan, Guozhuang Ma +57cs.AI cs.CL cs.IR
Recommendation algorithm iteration is moving from an artisanal, engineer-bound process toward an industrialized research loop, but this transition remains blocked by a structural execution bottleneck: the idea-to-launch cycle still depends on human engineers to generate hypotheses, modify production code, launch A/B experiments, and attribute online results. Innovation therefore scales linearly with headcount rather than compounding with evidence, compute, and accumulated experimental knowledge. We present AgentX, a production-deployed multi-agent system that fundamentally restructures this production function. AgentX operates as a self-evolving development engine: it autonomously generates, implements, evaluates, and learns from recommendation experiments at a scale and pace that no manual workflow can sustain. The system orchestrates four tightly coupled stages in a closed loop. A Brainstorm Agent synthesizes evidence from historical experiments, system architecture, data analysis, and external research into ranked, executable proposals. A Developing Agent translates each proposal into production-ready code through repository-grounded generation and multi-dimensional reliability verification. An Evaluation Agent conducts safe online rollout with guardrail-vetoed A/B judgment, converting both successes and failures into structured knowledge assets. A Harness Evolution layer (SGPO) then distills execution trajectories into semantic-gradient updates that continuously sharpen the agents themselves -- making the system not merely automated, but self-improving.
A/B testing has become the gold standard for data-driven decision-making in large-scale online experimentation, providing critical guidance for feature launch, pricing optimization, and user experience enhancement. To maximize statistical sensitivity, many technology companies routinely employ Controlled-experiment Using Pre-Experiment Data (CUPED), a technique that achieves substantial variance reduction while preserving the unbiasedness of estimating the average treatment effect. Despite its widespread adoption, several critical methodological and practical nuances of CUPED remain underexplored. This paper systematically addresses five frequently encountered yet overlooked questions regarding the application of CUPED. First, we provide a comparative analysis of various post-CUPED estimators to identify the optimal adjustment specification. Second, we evaluate the validity of regression-based adjustments and delineate robust variance estimation methods tailored for such frameworks. Finally, we extend our investigation to complex but common scenarios, including multi-arm experiments and two-stage sampling designs. Our findings reveal that in these settings, naive reliance on standard variance estimators can lead to severely misleading inferences. By offering rigorous theoretical insights and extensive experimental validation, this work deepens the conceptual understanding of CUPED. Notably, the recommended methodologies have been successfully deployed and integrated into ByteDance's experimentation platform.
Joel Persson, Mårten Schultzberg, Sebastian Ankargrenstat.ME cs.AI econ.EM math.ST
Organizations and researchers show increasing interest in using large language models (LLMs) in place of human participants in A/B tests, in the hope of experimenting faster and at lower cost. We study when a treatment effect estimated on LLM outcomes can recover the effect for the human population of interest. Distributional equivalence between LLM and human outcomes would make any standard estimator valid but is unrealistic. We therefore develop a statistical framework that adapts surrogate endpoint theory to LLMs, showing that calibrating LLM outcomes to human outcomes identifies the average treatment effect under surrogacy and comparability conditions that are jointly weaker than distributional equivalence. We present a falsification test for surrogacy and a bound on the worst-case bias from limited overlap between the LLM and human samples. We further show that the stochasticity inherent to LLMs can weaken surrogacy for identification while also introducing bias and variance during estimation, but that using an average over multiple LLM draws per unit as the surrogate mitigates these issues. Simulations validate the results, and an empirical application to the Upworthy Research Archive dataset shows that raw LLM outputs recover only 39% of the human treatment effect while nonparametric calibration closes the gap. A central takeaway is that A/B testing on LLM responses is correct only by assumption, whereas A/B testing on humans is correct by design, and that the required assumptions are hardest to justify precisely where LLMs promise the greatest benefit. We discuss the choice of LLM, prompting, and temperature as design variables, the compounded challenge posed by long-term outcomes, and how to size human pilot studies for validation.
Aman Gupta, Kevin Rossell, Edesio Alcobaça +8cs.CL
The rapid rise in LLM capabilities has made AI agents increasingly viable across a broad range of tasks. Among the most promising applications is building production-ready customer-facing agents, a challenge that demands coordinated excellence in evaluation methodology, context engineering, training, and online measurement. Yet these critical pillars are typically developed in isolation, creating blind spots that only surface after deployment. In this paper, we present a unified framework that bridges offline development with online impact for customer support AI agents at Nubank, a company with 100M+ users. Our approach integrates several key components: (1) structured context engineering tailored to customer support agents, (2) systematic human-in-the-loop prompt iteration, (3) rigorous LLM judge evaluation with measured inter-rater agreement and GEPA optimization for consistency, and (4) ideation-to-production validation. A central insight is that evaluation-pipeline quality directly determines iteration velocity. We present results from five production deployments spanning distinct domains: card delivery, debt management, credit-limit support, card management, and product explanation. These deployments deliver consistent customer-satisfaction gains while substantially accelerating iteration. In our card-delivery deployment, large-scale A/B testing yields a 37 percentage-point improvement in AI transactional Net Promoter Score and a 29 percentage-point gain in self-service rate over prior agent variants, alongside a strong correlation between offline simulation metrics and online outcomes, demonstrating that eval-driven development reliably predicts production impact. On most use cases, AI satisfaction reaches within a few percentage points of expert human agents.
Online evaluation of ranking and retrieval systems often relies on downstream monetization metrics such as app revenue or creator earnings. These metrics are typically heavy-tailed, with a small fraction of users dominating both mean and variance, leading to low statistical power and unreliable conclusions in A/B experiments -- especially under limited traffic. We present a practical framework for variance reduction in online experiments by combining post-stratification with CUPED. Our approach leverages pre-experiment covariates to improve the sensitivity of monetization experiments without requiring additional traffic. Deployed at ShareChat across ranking-driven monetization experiments, the method substantially reduces variance and improves decision stability, achieving equivalent statistical confidence with ~45\% less traffic than standard metrics. We further discuss practical design choices, guardrails, and limitations, providing guidance on when post-stratification is appropriate for real-world information retrieval and Recommendation systems.