Archives AI News

A Regulatory Governance Framework for AI-Driven Financial Fraud Detection in U.S. Banking: Integrating OCC, SR 11-7, CFPB, and FinCEN Compliance Requirements for Model Development, Validation, and Monitoring Lifecycles

arXiv:2605.04076v1 Announce Type: new Abstract: U.S. financial institutions deploying AI-based fraud detection face a fragmented compliance landscape spanning four regulatory frameworks — OCC Bulletin 2011-12, SR 11-7, the CFPB AI circular, and FinCEN BSA/SAR requirements — with no integrated governance…

Balanced Aggregation: Understanding and Fixing Aggregation Bias in GRPO

arXiv:2605.04077v1 Announce Type: new Abstract: Reinforcement learning with verifiable rewards (RLVR) has become a central paradigm for improving reasoning and code generation in large language models, and GRPO-style training is widely adopted for its simplicity and effectiveness. However, an important…

Knowledge Distillation Must Account for What It Loses

arXiv:2604.25110v2 Announce Type: replace Abstract: This position paper argues that knowledge distillation must account for what it loses: student models should be judged not only by retained task scores, but by whether they preserve the teacher capabilities that make those…

Validity-Calibrated Reasoning Distillation

arXiv:2605.04078v1 Announce Type: new Abstract: Reasoning distillation aims to transfer multi-step reasoning capabilities from large language models to smaller, more efficient ones. While recent methods have shown promising gains, they typically rely on static teacher-student hierarchies and frame distillation as…

Cross-Tokenizer Likelihood Scoring Algorithms for Language Model Distillation

arXiv:2512.14954v2 Announce Type: replace-cross Abstract: Computing next-token likelihood ratios between two language models (LMs) is a standard task in training paradigms such as knowledge distillation. Since this requires both models to share the same probability space, it becomes challenging when…