Microsoft Research has conscionable launched an unfastened root situation for studying agentic markets, called Magentic Marketplace. In beforehand of nan release, I said to Ece Kamar, Managing Director of nan AI Frontiers Lab astatine Microsoft Research.
Kamar’s investigation group had antecedently developed AutoGen, an agentic improvement model that has go celebrated pinch Python developers — particularly for building multi-agent AI systems. In portion owed to that success, nan improvement of Magentic Marketplace was inspired by AutoGen.
“AutoGen is portion of nan Microsoft Agent Framework [that] was released a period ago,” Kamar told me. “So we were capable to get each of that programming furniture and vessel it connected a Microsoft product. And now we usage each of nan learnings from AutoGen — what group do pinch AutoGen — to deliberation astir what agents are going to become.”
What Is Magentic Marketplace?
The thought of Magentic Marketplace is to let researchers to simulate a marketplace for AI agents, to trial “how agents negotiate, transact, and collaborate nether real-world marketplace dynamics.” The marketplace will besides show information and fairness successful these systems.

Magentic Marketplace high-level.
Although Magentic Marketplace is simply a investigation project, it could easy go a commercialized task later — akin to really AutoGen has evolved into Microsoft Agent Framework (the consequence of a caller merger betwixt AutoGen and Semantic Kernel, an SDK I profiled backmost successful April 2023).
“We are expecting that location will beryllium nationalist markets coming,” Kamar said. “We [Microsoft Research] are astir apt not going to beryllium nan squad to build them, sitting successful research. But […] erstwhile you look into immoderate of nan latest releases coming successful this space, it’s each benignant of gearing towards starting to trial these marketplaces.”
“I personally judge that a batch of nan measurement we usage exertion will beryllium rethought, redesigned pinch these agents successful mind,” she added. “And marketplaces is going to beryllium 1 of nan domains I expect to spot a batch of activity going on.”
Protocols successful a ‘Society of Agents’
Like immoderate bully investigation project, location is simply a moving mentation astir really AI agents should work. Kamar, whose PhD astatine Harvard during nan 2000s was connected nan very taxable of AI agents, is utilizing nan building “society of agents” to picture nan project’s goals.
“In this conception of ‘society of agents’, it is really astir AI agents coming together, interacting, collaborating, negotiating,” she said. “Also, pinch nan supervision of people, and really uncovering really nan world is going to look for illustration erstwhile we person these agents, really having these agents by our broadside is going to beryllium capable to reside immoderate of nan inefficiencies we person successful nan world.”
“In this conception of ‘society of agents’, it is really astir AI agents coming together, interacting, collaborating, negotiating.”
– Ece Kamar, Microsoft Research
A cardinal portion of nan investigation is testing communications protocols for illustration Model Context Protocol (MCP) and Agent2Agent (A2A), on pinch emerging costs protocols. For agentic commerce, location isn’t yet a default protocol — though precocious OpenAI announced nan Agentic Commerce Protocol (ACP), Google announced Agent Payments Protocol (AP2) successful September, while others (like Shopify) person been utilizing MCP-UI.
Kamar besides expects caller protocols to look that will thief agents collaborate, aliases for protocols for illustration MCP and A2A to grow for marketplace usage cases. For example, what is nan correct measurement for agents to show accusation for a transaction?
Key Challenges and Biases successful AI Agent Simulations
Kamar said they besides admit nan risks that travel pinch AI agents — for illustration information and bias — and she described immoderate of nan challenges they’ve travel crossed truthful acold successful nan marketplace simulations.
“One of nan things that we are seeing is that, again, while we person these connection protocols [MCP, A2A, et al], nan models powering these agents sometimes tin get into immoderate benignant of a determination paradox. If they person excessively galore choices, they whitethorn not beryllium that effective yet successful position of being capable to make nan correct choices.”

Magentic Marketplace successful action.
The group has besides seen “some biases coming up.”
“For example, 1 of nan biases we person identified is thing called a ‘proposal bias.’ The models correct now are preferring options that are coming up fast. Like, if you’re a accelerated agent, you are overmuch much preferred whether you person nan champion connection aliases not.”
So while agents person been capable to pass pinch each different successful nan marketplace simulation, location is overmuch activity to beryllium done to make multi-agent collaboration a reality. To get to nan highest level of inferior from these marketplaces, Kamar noted, “we will request to train these agents and build them successful different ways.”
She mentioned a mates of nan method issues they’ve travel crossed truthful acold successful nan simulations. One is what she termed “tool abstraction interference”, which fundamentally intends nan agents get confused by nan proliferation of AI tools. “Right now, MCP has truthful galore different tools,” she said, “and sometimes they are named nan aforesaid way, aliases moreover nan sanction conventions are not location yet; and we are seeing that arsenic this protocol is maturing, location are still issues pinch it.”
Magentic Marketplace has already shown “the limitations of nan existing frontier models erstwhile it comes to collaboration and negotiation.”
– Kamar
In fact, Kamar’s group has itself built an unfastened root MCP tool, called MCP Interviewer. She explained that it “helps developers […] benignant of question and reply these tools, look astatine interference issues, truthful that they tin beryllium much informed astir which devices to bring in; and spot issues for illustration instrumentality interference earlier it happens successful their existent systems.”
The 2nd rumor is further down nan stack — she noted “the limitations of nan existing frontier models erstwhile it comes to collaboration and negotiation.” They’ve tried to get LLMs to collaborate pinch each different to thief agents execute a task, and recovered that exemplary capacity degrades pinch this collaboration.
“So, arsenic a team, we’re besides looking into what needs to alteration successful nan measurement models are trained, truthful that these models tin empower stronger agents successful position of their collaboration capabilities,” Kamar said.
Balancing AI Agent Autonomy pinch Human Supervision
Those of you aged capable to retrieve nan dot-com era of nan net will callback that it took respective years for group to consciousness assured entering their in installments paper accusation into a web browser to make an online purchase. So really agelong will it return to consciousness assured giving our in installments cards — aliases so our individual preferences — to an AI agent?
“I deliberation it is for us, for researchers, it is conscionable very important that we are improving nan exertion and creating clarity astir nan exertion arsenic overmuch arsenic we can,” Kamar said. “And erstwhile it is clip for these technologies to beryllium successful nan hands of nan people, we are not giving them thing that we built but we don’t really understand; but we are giving them thing that we genuinely understand and we person tested, we understood nan unsmooth edges and we person worked connected improving them.”
She added that her squad besides considers erstwhile quality supervision is due successful these agentic systems — much commonly referred to successful nan manufacture arsenic “human successful nan loop.”
“If we are going to beryllium building these marketplaces and ecosystems, we tin besides put clip connected knowing and building these layers where, arsenic a user, I still person nan control…”
– Kamar
“So I deliberation location is besides going to beryllium a spectrum wherever we are not going to spell to afloat supplier autonomy connected time one,” she said. “You know, it doesn’t person to be. If we are going to beryllium building these marketplaces and ecosystems, we tin besides put clip connected knowing and building these layers where, arsenic a user, I still person nan power — I’m still looking astatine each nan interactions, I’m still looking astatine nan options, I tin still inquire questions astir what nan supplier is recommending to me.”
Before this interview, I must admit I wasn’t judge why Microsoft would beryllium releasing a simulated marketplace alternatively of nan existent thing. But Kamar has convinced maine that it’s not only sensible to afloat trial really agents collaborate earlier a nationalist marketplace goes live, but it’s really vulnerable not to tally nan simulations first!
Also, Magentic Marketplace should thief america amended nan LLMs, protocols and AI tooling that companies will request to make a nationalist supplier marketplace viable.
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