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Taleb makes a convincing case that most real-world phenomena we care about actually inhabit Extremistan rather than Mediocristan. In these cases, you can make quite a fool of yourself by assuming that the future looks like the past.

The current generation of machine learning algorithms can work well in Mediocristan but not in Extremistan.

It has long been known that Google's search algorithm actually works at 2 levels: An offline phase that extracts "signals" from a massive web crawl and usage data. An example of such a signal is page rank. These computations need to be done offline because they analyze massive amounts of data and are time-consuming. Because these signals are extracted offline, and not in response to user queries, these signals are necessarily query-independent. You can think of them tags on the documents in the index. There are about 200 such signals. An online phase, in response to a user query. A subset of documents is identified based on the presence of the user's keywords. Then, these documents are ranked by a very fast algorithm that combines the 200 signals in-memory using a proprietary formula.

The heart of the matter is this: how do you measure the quality of search results

The first is that we have all been trained to trust Google and click on the first result no matter what. So ranking models that make slight changes in ranking may not produce significant swings in the measured usage data. The second, more interesting, factor is that users don't know what they're missing.

here's the shocker -- these metrics are not very sensitive to new ranking models! When Google tries new ranking models, these metrics sometimes move, sometimes not, and never by much