Impromptu: Amplifying Our Humanity Through AI tion, and transaction costs. In these situations, prices do not reflect the true social costs and benefits of actions, and competition may lead to overexploitation, underpro- vision, or misallocation of resources. Hayek: I see. And what are the alternatives? Ostrom: The alternatives are not necessarily top-down or one-size-fits-all. They are often bottom-up and con- text-specific. They involve the participation and empow- erment of the actors who are affected by and have knowledge of the problem, and the recognition and respect of the diversity and complexity of the situation. They also involve the design and adaptation of institu- tions, or the rules of the game, that can foster cooper- ation, coordination, and communication among the actors, and that can balance the incentives and sanc- tions, the rights and responsibilities, and the costs and benefits of collective action. Hayek: That sounds very appealing, but also very challenging. How can such institutions be designed and adapted, especially in a dynamic and uncertain environment? Ostrom: That is where AI might help. AI could be used as a tool for generating, evaluating, and selecting insti- tutional options, based on the input data and criteria of the actors. For example, a AI system could generate a set of possible rules for managing a common-pool resource, such as a fishery, a forest, or a water basin, based on the characteristics of the resource, the users, and the envi- ronment. The system could also generate a set of possi- ble outcomes and impacts of each rule, such as the level of cooperation, the sustainability of the resource, and the distribution of benefits and costs. The system could then present these options to the actors, who could choose the one that best suits their preferences and 180