Mechanism Design for AI Overviews: Creator Incentives and Long-Term Profit

Oct 2, 2026·
Yihang Wu
,
Jiajun Tang
,
Jinfei Liu
,
Haifeng Xu
Fan Yao
Fan Yao
· 0 min read
Abstract
The integration of AI Overviews into search engines enhances user experience but diverts traffic from content creators, potentially discouraging high-quality content creation and causing user attrition that undermines long-term search engine profit. To address this issue, we propose a game-theoretic model of creator competition with costly effort, characterize equilibrium behavior, and design two incentive mechanisms: a citation mechanism that references sources within an AI Overview, and a compensation mechanism that offers monetary rewards to creators. For both cases, we provide structural insights for profit-maximizing mechanisms. Evaluations parameterized by real click data show that although AI Overviews harm long-term search engine profit, interventions based on our proposed mechanisms can increase long-term profit across a range of realistic scenarios, pointing toward a more sustainable trajectory for AI-enhanced search ecosystems.
Type
Publication
NeurIPS, 2026
publications
Fan Yao
Authors
Assistant Professor

I am an assistant professor in the Department of Statistics and Operations Research (STOR) at UNC Chapel Hill. I received my PhD in Computer Science from the University of Virginia, advised by Haifeng Xu and Hongning Wang. Prior to obtaining my PhD, I spent two years at the University of Chicago and received both my BS and MS in Computational Mathematics from Peking University.

My research interests include social and ethical aspects of AI, human-centered machine learning, strategic and multi-agent systems, recommender systems and digital platform economy. If you share similar interests, feel free to contact me via email. Prospective students are encouraged to review this before contacting me.

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Current status: ☕️in the US (☕️regular ✈️traveling 🏖vacation ⏳deadline mode)