Archives AI News

Finance-Grounded Optimization For Algorithmic Trading

arXiv:2509.04541v1 Announce Type: new Abstract: Deep Learning is evolving fast and integrates into various domains. Finance is a challenging field for deep learning, especially in the case of interpretable artificial intelligence (AI). Although classical approaches perform very well with natural language processing, computer vision, and forecasting, they are not perfect for the financial world, in which specialists use different metrics to evaluate model performance. We first introduce financially grounded loss functions derived from key quantitative finance metrics, including the Sharpe ratio, Profit-and-Loss (PnL), and Maximum Draw down. Additionally, we propose turnover regularization, a method that inherently constrains the turnover of generated positions within predefined limits. Our findings demonstrate that the proposed loss functions, in conjunction with turnover regularization, outperform the traditional mean squared error loss for return prediction tasks when evaluated using algorithmic trading metrics. The study shows that financially grounded metrics enhance predictive performance in trading strategies and portfolio optimization.

Detecting Blinks in Healthy and Parkinson’s EEG: A Deep Learning Perspective

arXiv:2509.04951v1 Announce Type: new Abstract: Blinks in electroencephalography (EEG) are often treated as unwanted artifacts. However, recent studies have demonstrated that blink rate and its variability are important physiological markers to monitor cognitive load, attention, and potential neurological disorders. This paper addresses the critical task of accurate blink detection by evaluating various deep learning models for segmenting EEG signals into involuntary blinks and non-blinks. We present a pipeline for blink detection using 1, 3, or 5 frontal EEG electrodes. The problem is formulated as a sequence-to-sequence task and tested on various deep learning architectures including standard recurrent neural networks, convolutional neural networks (both standard and depth-wise), temporal convolutional networks (TCN), transformer-based models, and hybrid architectures. The models were trained on raw EEG signals with minimal pre-processing. Training and testing was carried out on a public dataset of 31 subjects collected at UCSD. This dataset consisted of 15 healthy participants and 16 patients with Parkinson's disease allowing us to verify the model's robustness to tremor. Out of all models, CNN-RNN hybrid model consistently outperformed other models and achieved the best blink detection accuracy of 93.8%, 95.4% and 95.8% with 1, 3, and 5 channels in the healthy cohort and correspondingly 73.8%, 75.4% and 75.8% in patients with PD. The paper compares neural networks for the task of segmenting EEG recordings to involuntary blinks and no blinks allowing for computing blink rate and other statistics.

AI Agents for Web Testing: A Case Study in the Wild

arXiv:2509.05197v1 Announce Type: cross Abstract: Automated web testing plays a critical role in ensuring high-quality user experiences and delivering business value. Traditional approaches primarily focus on code coverage and load testing, but often fall short of capturing complex user behaviors, leaving many usability issues undetected. The emergence of large language models (LLM) and AI agents opens new possibilities for web testing by enabling human-like interaction with websites and a general awareness of common usability problems. In this work, we present WebProber, a prototype AI agent-based web testing framework. Given a URL, WebProber autonomously explores the website, simulating real user interactions, identifying bugs and usability issues, and producing a human-readable report. We evaluate WebProber through a case study of 120 academic personal websites, where it uncovered 29 usability issues--many of which were missed by traditional tools. Our findings highlight agent-based testing as a promising direction while outlining directions for developing next-generation, user-centered testing frameworks.

Scaling Performance of Large Language Model Pretraining

arXiv:2509.05258v1 Announce Type: cross Abstract: Large language models (LLMs) show best-in-class performance across a wide range of natural language processing applications. Training these models is an extremely computationally expensive task; frontier Artificial Intelligence (AI) research companies are investing billions of dollars into supercomputing infrastructure to train progressively larger models on increasingly massive datasets. Unfortunately, information about the scaling performance and training considerations of these large training pipelines is scarce in public literature. Working with large-scale datasets and models can be complex and practical recommendations are scarce in the public literature for tuning training performance when scaling up large language models. In this paper, we aim to demystify the large language model pretraining pipeline somewhat - in particular with respect to distributed training, managing large datasets across hundreds of nodes, and scaling up data parallelism with an emphasis on fully leveraging available GPU compute capacity.

The Paradox of Doom: Acknowledging Extinction Risk Reduces the Incentive to Prevent It

arXiv:2509.04855v1 Announce Type: cross Abstract: We investigate the salience of extinction risk as a source of impatience. Our framework distinguishes between human extinction risk and individual mortality risk while allowing for various degrees of intergenerational altruism. Additionally, we consider the evolutionarily motivated "selfish gene" perspective. We find that the risk of human extinction is an indispensable component of the discount rate, whereas individual mortality risk can be hedged against - partially or fully, depending on the setup - through human reproduction. Overall, we show that in the face of extinction risk, people become more impatient rather than more farsighted. Thus, the greater the threat of extinction, the less incentive there is to invest in avoiding it. Our framework can help explain why humanity consistently underinvests in mitigation of catastrophic risks, ranging from climate change mitigation, via pandemic prevention, to addressing the emerging risks of transformative artificial intelligence.

Adversarial Augmentation and Active Sampling for Robust Cyber Anomaly Detection

arXiv:2509.04999v1 Announce Type: cross Abstract: Advanced Persistent Threats (APTs) present a considerable challenge to cybersecurity due to their stealthy, long-duration nature. Traditional supervised learning methods typically require large amounts of labeled data, which is often scarce in real-world scenarios. This paper introduces a novel approach that combines AutoEncoders for anomaly detection with active learning to iteratively enhance APT detection. By selectively querying an oracle for labels on uncertain or ambiguous samples, our method reduces labeling costs while improving detection accuracy, enabling the model to effectively learn with minimal data and reduce reliance on extensive manual labeling. We present a comprehensive formulation of the Attention Adversarial Dual AutoEncoder-based anomaly detection framework and demonstrate how the active learning loop progressively enhances the model's performance. The framework is evaluated on real-world, imbalanced provenance trace data from the DARPA Transparent Computing program, where APT-like attacks account for just 0.004% of the data. The datasets, which cover multiple operating systems including Android, Linux, BSD, and Windows, are tested in two attack scenarios. The results show substantial improvements in detection rates during active learning, outperforming existing methods.

Revealing higher-order neural representations of uncertainty with the Noise Estimation through Reinforcement-based Diffusion (NERD) model

arXiv:2503.14333v3 Announce Type: replace-cross Abstract: Studies often aim to reveal ``first-order" representations (FORs), which encode aspects of an observer's environment, such as contents or structure. A less-common target is ``higher-order" representations (HORs), which are ``about" FORs -- e.g., their strength or uncertainty -- and which may contribute to learning. HORs about uncertainty are unlikely to be direct ``read-outs" of FOR characteristics, instead reflecting noisy estimation processes incorporating prior expectations about uncertainty, but how the brain represents such expected uncertainty distributions remains largely unexplored. Here, we study ``noise expectation" HORs using neural data from a task which may require the brain to learn about its own noise: decoded neurofeedback, wherein human subjects learn to volitionally produce target neural patterns. We develop and apply a Noise Estimation through Reinforcement-based Diffusion (NERD) model to characterize how brains may undertake this process, and show that NERD offers high explanatory power for human behavior.

Train-Once Plan-Anywhere Kinodynamic Motion Planning via Diffusion Trees

arXiv:2508.21001v2 Announce Type: replace-cross Abstract: Kinodynamic motion planning is concerned with computing collision-free trajectories while abiding by the robot's dynamic constraints. This critical problem is often tackled using sampling-based planners (SBPs) that explore the robot's high-dimensional state space by constructing a search tree via action propagations. Although SBPs can offer global guarantees on completeness and solution quality, their performance is often hindered by slow exploration due to uninformed action sampling. Learning-based approaches can yield significantly faster runtimes, yet they fail to generalize to out-of-distribution (OOD) scenarios and lack critical guarantees, e.g., safety, thus limiting their deployment on physical robots. We present Diffusion Tree (DiTree): a provably-generalizable framework leveraging diffusion policies (DPs) as informed samplers to efficiently guide state-space search within SBPs. DiTree combines DP's ability to model complex distributions of expert trajectories, conditioned on local observations, with the completeness of SBPs to yield provably-safe solutions within a few action propagation iterations for complex dynamical systems. We demonstrate DiTree's power with an implementation combining the popular RRT planner with a DP action sampler trained on a single environment. In comprehensive evaluations on OOD scenarios, DiTree achieves on average a 30% higher success rate compared to standalone DP or SBPs, on a dynamic car and Mujoco's ant robot settings (for the latter, SBPs fail completely). Beyond simulation, real-world car experiments confirm DiTree's applicability, demonstrating superior trajectory quality and robustness even under severe sim-to-real gaps. Project webpage: https://sites.google.com/view/ditree.

Collaboration and Conflict between Humans and Language Models through the Lens of Game Theory

arXiv:2509.04847v1 Announce Type: new Abstract: Language models are increasingly deployed in interactive online environments, from personal chat assistants to domain-specific agents, raising questions about their cooperative and competitive behavior in multi-party settings. While prior work has examined language model decision-making in isolated or short-term game-theoretic contexts, these studies often neglect long-horizon interactions, human-model collaboration, and the evolution of behavioral patterns over time. In this paper, we investigate the dynamics of language model behavior in the iterated prisoner's dilemma (IPD), a classical framework for studying cooperation and conflict. We pit model-based agents against a suite of 240 well-established classical strategies in an Axelrod-style tournament and find that language models achieve performance on par with, and in some cases exceeding, the best-known classical strategies. Behavioral analysis reveals that language models exhibit key properties associated with strong cooperative strategies - niceness, provocability, and generosity while also demonstrating rapid adaptability to changes in opponent strategy mid-game. In controlled "strategy switch" experiments, language models detect and respond to shifts within only a few rounds, rivaling or surpassing human adaptability. These results provide the first systematic characterization of long-term cooperative behaviors in language model agents, offering a foundation for future research into their role in more complex, mixed human-AI social environments.

What-If Analysis of Large Language Models: Explore the Game World Using Proactive Thinking

arXiv:2509.04791v1 Announce Type: new Abstract: Large language models (LLMs) excel at processing information reactively but lack the ability to systemically explore hypothetical futures. They cannot ask, "what if we take this action? how will it affect the final outcome" and forecast its potential consequences before acting. This critical gap limits their utility in dynamic, high-stakes scenarios like strategic planning, risk assessment, and real-time decision making. To bridge this gap, we propose WiA-LLM, a new paradigm that equips LLMs with proactive thinking capabilities. Our approach integrates What-If Analysis (WIA), a systematic approach for evaluating hypothetical scenarios by changing input variables. By leveraging environmental feedback via reinforcement learning, WiA-LLM moves beyond reactive thinking. It dynamically simulates the outcomes of each potential action, enabling the model to anticipate future states rather than merely react to the present conditions. We validate WiA-LLM in Honor of Kings (HoK), a complex multiplayer game environment characterized by rapid state changes and intricate interactions. The game's real-time state changes require precise multi-step consequence prediction, making it an ideal testbed for our approach. Experimental results demonstrate WiA-LLM achieves a remarkable 74.2% accuracy in forecasting game-state changes (up to two times gain over baselines). The model shows particularly significant gains in high-difficulty scenarios where accurate foresight is critical. To our knowledge, this is the first work to formally explore and integrate what-if analysis capabilities within LLMs. WiA-LLM represents a fundamental advance toward proactive reasoning in LLMs, providing a scalable framework for robust decision-making in dynamic environments with broad implications for strategic applications.