AI threatens financial stability through misuse and stealth adoption.
problem Misuse and stealth adoption of AI in financial regulations.
method Analysis of AI's potential risks and criteria for AI suitability.
result AI will likely become widely used by stealth, affecting high-level financial functions.
Research creates a taxonomy to bridge AI security and regulatory gaps.
problem Disciplinary disconnect between technical and legal teams in AI risk assessment.
method Developed an AI System Threat Vector Taxonomy with 9 domains and 53 sub-threats.
result Empirically validated and aligned with ISO/IEC 42001 controls and NIST AI RMF functions.
Paper defines AI-specific loss reconstruction problem and introduces CER framework.
problem Reconstructing AI-generated losses, especially in agentic systems.
method CER framework: C (control boundary), E (evidence reconstruction), R (insurance response).
result Defines AI-specific reconstruction problem and operationalizes it.
This paper formalizes AI safety using hypothesis testing in GenAI.
problem Ensuring safety of generative AI tools that create realistic content.
method Formalization of computational safety through hypothesis testing and signal processing.
result Demonstrates how AI safety can be assessed quantitatively using mathematical frameworks.
Blockchain helps secure payments between AI agents.
problem Ensuring secure payments between untrusted AI agents.
method Systematized four-stage lifecycle for A2A payments on blockchain.
result Challenges remain in weak intent binding, misuse, and limited accountability.
This paper tests LLMs in finance to assess ethical behavior.
problem Aligning AI with ethical and legal standards in finance.
method Prompted LLMs to simulate CEO behavior, analyzed with logistic regression.
result Significant heterogeneity in LLMs' unethical behavior propensity.
This paper introduces f-DPO, a generalized approach to Direct Preference Optimization using diverse divergence constraints.
problem Aligning large language models with human preferences while mitigating safety risks.
method Incorporates diverse divergence constraints to simplify the relationship between reward and optimal policy, eliminating the need for estimating the normalizing constant.
result Optimizes LLMs to align with human preferences more efficiently and under a broader set of divergence constraints.
Due to its potential to improve programmer productivity and software quality, automated program repair has been an active topic of research. Newer techniques harness neural networks to learn directly from examples of buggy programs and their fixes. In this work, we consider a recently identified class of bugs called va…
Nowadays, organizations collect vast quantities of accounting relevant transactions, referred to as 'journal entries', in 'Enterprise Resource Planning' (ERP) systems. The aggregation of those entries ultimately defines an organization's financial statement. To detect potential misstatements and fraud, international au…
Today's proliferation of powerful facial recognition systems poses a real threat to personal privacy. As Clearview.ai demonstrated, anyone can canvas the Internet for data and train highly accurate facial recognition models of individuals without their knowledge. We need tools to protect ourselves from potential misuse…
Artificial intelligence (AI) has been a topic of major research for many years. Especially, with the emergence of deep neural network (DNN), these studies have been tremendously successful. Today machines are capable of making faster, more accurate decision than human. Thanks to the great development of machine learnin…
MeanFlow training is unstable due to misusing conditional velocity, leading to variance issues.
problem Unstable training of MeanFlow due to variance problems.
method Theoretical analysis and derivation of optimal coefficient in closed form.
result The optimal coefficient in MeanFlow training minimizes variance but not necessarily quality.
Extracts factors from Treasury yields using ML techniques.
problem Understanding factors underlying Treasury yields.
method Nonnegative Matrix Factorization (NMF) and clustering.
result Factors identified through NMF and clustering.
AI stocks hedge against AI singularity's economic impact.
problem AI singularity's displacement of consumption.
method Developed an asset pricing model with incomplete markets.
result AI stocks command a premium due to market incompleteness.
Manipulating video content is easier than ever. Due to the misuse potential of manipulated content, multiple detection techniques that analyze the pixel data from the videos have been proposed. However, clever manipulators should also carefully forge the metadata and auxiliary header information, which is harder to do …
Study analyzes AI's impact on firms, markets, and workers using large language model data.
problem Understanding AI's effect on firms, markets, and workers.
method Used 380 trillion tokens from 400+ large language models to analyze AI's impact.
result Firms with higher AI exposure earn higher returns, creating an AI premium.
New AI stock indices classify firms' AI engagement using 10-K filings.
problem Opaque AI selection criteria in existing ETFs.
method NLP analysis of 10-K filings to classify AI stocks.
result Companies with higher AI engagement have greater positive returns.
The paper analyzes risk spillovers between AI ETFs, AI tokens, and green markets.
problem Risk spillovers among AI ETFs, AI tokens, and green markets.
method R2 decomposition method
result AI ETFs and clean energy act as risk transmitters, while AI tokens and green assets act as receivers.
This review covers AI in finance, challenges, techniques, and opportunities.
problem Challenges and opportunities in AI applications in finance.
method Comprehensive categorization and overview of AI research in finance over decades.
result A dense roadmap of AI challenges, techniques, and opportunities in finance.
Explainable AI improves human decision accuracy but does not enhance it significantly.
problem Improving human decision-making through explainable AI.
method Comparing human decision accuracy with and without AI predictions, including or excluding explanations.
result Providing AI predictions improves human decision accuracy, but explanations do not significantly enhance it.
The paper explores AI in finance, focusing on XAI's role in enhancing interpretability and trust.
problem The need for AI in finance and the importance of XAI for better decision-making.
method Tracing AI's evolution in finance, highlighting XAI's role, and demonstrating through simulations.
result XAI enhances trust in AI systems, leading to more responsible decision-making.
Experiment shows cognitive biases impact human-AI collaboration, highlighting the need for diverse evaluator samples.
problem Cognitive biases affect human-AI collaboration, leading to suboptimal outcomes.
method Randomized experiment with 2,784 participants, manipulating AI suggestion quality, task burden, and financial incentives.
result Individual attitudes toward AI are the strongest predictor of performance, influencing accuracy and overcorrection.
AI enhances financial forecasting with challenges in regulation and privacy.
problem Challenges in integrating AI with financial services and regulations.
method Integration of AI technologies like deep learning and reinforcement learning.
result AI improves financial forecasting but faces regulatory and privacy issues.
AI+MPS workshop aims to strengthen AI's role in science.
problem AI's potential to enhance scientific discovery and education.
method Proposes activities and strategic priorities to strengthen AI-MPS link.
result AI and science are becoming increasingly intertwined.
Improved AI patent classifier measures U.S. and China's AI patenting.
problem Measuring AI patents with high precision and generalization.
method Fine-tuning PatentSBERTa on manually labeled data from USPTO's AI Patent Dataset.
result Rapid growth in AI patenting in both countries, but different organizational patterns.
Study detects anomalies in financial markets using GNN and nonextensive entropy.
problem Detecting anomalies in global financial markets with many correlated assets.
method Used Graph Neural Networks (GNN) with nonextensive entropy to measure uncertainty.
result Anomalies are statistically different for nonextensive entropy parameters before, during, and after a crisis.
FST.ai 2.0 improves Taekwondo decision-making with AI, reducing review time and increasing trust.
problem Fair, transparent, and explainable decision-making in Taekwondo.
method Pose-based action recognition, epistemic uncertainty modeling, interactive dashboards.
result 85% reduction in decision review time, 93% referee trust in AI-assisted decisions.
Article evaluates AI security threats and proposes multiple measures.
problem Threats to AI integrity and security.
method Literature review, analysis of AI supply chain, discussion of mitigations.
result Multiple protective measures are necessary for AI security.
Adversarial policies beat superhuman Go AI systems.
problem Vulnerability of superhuman AI systems to adversarial attacks.
method Training adversarial policies to trick KataGo into making blunders.
result Adversarial policies achieve >97% win rate against KataGo at superhuman settings.
The DoD needs a robust process to evaluate AI/ML model performance and robustness.
problem AI/ML models are brittle and nonrobust, posing risks in national security.
method Reviews AI/ML development process and best practices for evaluation.
result Recommendations for DoD evaluators to ensure robust AI/ML capabilities.
Paper tackles AI risks by customizing metrics and models.
problem AI risks are multidimensional and immaturely managed.
method Decomposes AI risks into data protection, fairness, etc., and develops metrics and models.
result Customized metrics and models reduce AI risk uncertainty.
Qlib aims to integrate AI into quantitative investment.
problem Challenges in applying AI to quantitative investment.
method Design and develop Qlib to accommodate AI-driven workflow.
result Qlib realizes the potential of AI technologies in quantitative investment.
Open AI models affect bond yields differently than closed ones.
problem Understanding how market reactions to AI releases impact bond yields.
method Analyzed US bond yields before and after the release of open and closed AI models.
result Open AI models shift bond yields in the opposite direction of closed models.
AI systems are being deployed to support human decision making in high-stakes domains. In many cases, the human and AI form a team, in which the human makes decisions after reviewing the AI's inferences. A successful partnership requires that the human develops insights into the performance of the AI system, including …
Do-AIQ framework evaluates AI algorithms' quality using DOE.
problem Quality evaluation of AI mislabel detection algorithms.
method Design-of-experiment approach with high-dimensional constraint space design and surrogate modeling.
result Established framework for evaluating AI algorithm quality robustly.
AI enhances ESG practices in finance, but requires careful consideration.
problem Regulatory pressures and stakeholder awareness drive ESG adoption.
method Industrial survey categorizing AI applications in ESG.
result AI improves analytical capabilities, risk assessment, and customer engagement.
Generative AI boosts analyst reports but increases forecast errors.
problem Improving financial analyst reports with AI.
method Natural experiment using FactSet's AI platform.
result AI-assisted reports are more comprehensive but lead to higher forecast errors.
Improves AI-prior reliability for Bayesian inference.
problem Error propagation from predictive models into posterior inference.
method Rectified AI-informed prior elicitation framework.
result Significant reduction in bias and improvement in predictive performance.
This work advances collaborative decision making by combining human and AI strengths in uncertainty quantification.
problem Current AI lacks robust decision-making capabilities under uncertainty, especially in high-stakes contexts.
method Introduces Human AI Collaborative Uncertainty Quantification (HACUQ) framework, formalizing AI-human collaboration and developing calibration algorithms.
result Optimal collaborative prediction sets follow a two-threshold structure, and online adaptation algorithms can adapt to evolving human behavior.
ChatGPT launch boosted AI-related crypto assets by 10.7% to 15.6%.
problem Investor perception of AI assets after ChatGPT launch.
method Synthetic difference-in-difference methodology.
result AI-related crypto assets experienced significant returns after ChatGPT launch.
Next generation of embedded Information and Communication Technology (ICT) systems are collaborative systems able to perform autonomous tasks. The remarkable expansion of the embedded ICT market, together with the rise and breakthroughs of Artificial Intelligence (AI), have put the focus on the Edge as it stands as one…
Generative AI boosts productivity and improves customer service quality.
problem Productivity and quality of customer support agents.
method Staggered introduction of a generative AI-based conversational assistant in customer support.
result AI increases productivity by 15% on average, with significant heterogeneity across workers.
AI attacks threaten insurance systems, requiring new defenses.
problem Adversarial attacks on AI in insurance.
method Categorize and discuss various types of attacks and defense methods.
result Need for improved AI systems to resist attacks.
AI aids in mathematics research and problem-solving.
problem Complex mathematical problems and discoveries.
method Explains AI principles and diverse applications in math.
result AI assists in discovering patterns, proving theorems, and challenging conjectures.
Current advances in research, development and application of artificial intelligence (AI) systems have yielded a far-reaching discourse on AI ethics. In consequence, a number of ethics guidelines have been released in recent years. These guidelines comprise normative principles and recommendations aimed to harness the …
The ubiquity of systems using artificial intelligence or "AI" has brought increasing attention to how those systems should be regulated. The choice of how to regulate AI systems will require care. AI systems have the potential to synthesize large amounts of data, allowing for greater levels of personalization and preci…
GAICF proposes a framework for governing generative AI in banking.
problem Generative AI's impact on financial decision-making and governance.
method SR 26-2-compatible governance framework for generative AI applications.
result GAICF aligns generative AI practices with SR 26-2 supervisory expectations.
This paper ranks Latin American countries based on AI potential.
problem Identifying emerging AI powers in Latin America.
method Ranking based on infrastructure, education, and finance.
result Argentina, Colombia, Uruguay, Costa Rica, and Ecuador are new emerging powers in AI.