Kalimantan
Indonesia sues six companies over environmental harm in flood zones
Indonesia's government has filed multiple lawsuits seeking more than $200m in damages against six firms, after deadly floods wreaked havoc across Sumatra, killing more than 1,000 people last year, although environmentalists criticised the moves as inadequate. Environmentalists, experts and the government pointed the finger at deforestation for its role in last year's disaster that washed torrents of mud and wooden logs into villages across the northwestern part of the island. The sum represents both fines for damage and the proposed monetary value of recovery efforts. The suits were filed to courts on Thursday in Jakarta and North Sumatra's Medan, the ministry added. "We firmly uphold the principle of polluter pays," Environment Minister Hanif Faisol Nurofiq said in a statement.
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- Law > Environmental Law (0.93)
- Law > Litigation (0.57)
Is Lying Only Sinful in Islam? Exploring Religious Bias in Multilingual Large Language Models Across Major Religions
Hossain, Kazi Abrab, Mahmud, Jannatul Somiya, Tuli, Maria Hossain, Mitra, Anik, Haque, S. M. Taiabul, Sadeque, Farig Y.
While recent developments in large language models have improved bias detection and classification, sensitive subjects like religion still present challenges because even minor errors can result in severe misunderstandings. In particular, multilingual models often misrepresent religions and have difficulties being accurate in religious contexts. To address this, we introduce BRAND: Bilingual Religious Accountable Norm Dataset, which focuses on the four main religions of South Asia: Buddhism, Christianity, Hinduism, and Islam, containing over 2,400 entries, and we used three different types of prompts in both English and Bengali. Our results indicate that models perform better in English than in Bengali and consistently display bias toward Islam, even when answering religion-neutral questions. These findings highlight persistent bias in multilingual models when similar questions are asked in different languages. We further connect our findings to the broader issues in HCI regarding religion and spirituality.
- Asia > Bangladesh > Dhaka Division > Dhaka District > Dhaka (0.40)
- Europe > Austria > Vienna (0.14)
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- Information Technology > Artificial Intelligence > Representation & Reasoning (1.00)
- Information Technology > Artificial Intelligence > Natural Language > Large Language Model (1.00)
- Information Technology > Artificial Intelligence > Natural Language > Chatbot (1.00)
- Information Technology > Artificial Intelligence > Machine Learning > Neural Networks > Deep Learning (1.00)
Context-Aware Pragmatic Metacognitive Prompting for Sarcasm Detection
Iskandardinata, Michael, Christian, William, Suhartono, Derwin
Abstract--Detecting sarcasm remains a challenging task in the areas of Natural Language Processing (NLP) despite recent advances in neural network approaches. Currently, Pre-trained Language Models (PLMs) and Large Language Models (LLMs) are the preferred approach for sarcasm detection. However, the complexity of sarcastic text, combined with linguistic diversity and cultural variation across communities, has made the task more difficult even for PLMs and LLMs. Beyond that, those models also exhibit unreliable detection of words or tokens that require extra grounding for analysis. Building on a state-of-the-art prompting method in LLMs for sarcasm detection called Pragmatic Metacognitive Prompting (PMP), we introduce a retrieval-aware approach that incorporates retrieved contextual information for each target text. Our pipeline explores two complementary ways to provide context: adding non-parametric knowledge using web-based retrieval when the model lacks necessary background, and eliciting the model's own internal knowledge for a self-knowledge awareness strategy. We evaluated our approach with three datasets, such as Twitter Indonesia Sarcastic, SemEval-2018 T ask 3, and MUStARD. Non-parametric retrieval resulted in a significant 9.87% macro-F1 improvement on Twitter Indonesia Sarcastic compared to the original PMP method. Self-knowledge retrieval improves macro-F1 by 3.29% on Semeval and by 4.08% on MUStARD. Future work will focus on optimizing the retrieval of relevant contextual information and examining how retrieval quality affects performance. In the field of machine learning, natural language processing (NLP) tasks have been shown to be a crucial part of human life. NLP tasks revolve around processing text in a specific manner and receiving an output that can be useful, with examples such as text classification, text generation, information retrieval, and similar related tasks. Sarcasm detection, or as some call it verbal irony detection, is a task in NLP that automatically classifies text, and in extended forms includes images, audio, or video, as either sarcastic or not. Systems designed for sarcasm detection are becoming more important in the 21st century due to the growth of the use of sarcasm detection datasets caused by media usage of it, such as social media, television, and much more. Additionally, enhancing these automatic systems for sarcasm detection could become crucial in interpreting the real sentence meaning of a text.
- Europe > Austria > Vienna (0.14)
- Asia > Middle East > UAE > Abu Dhabi Emirate > Abu Dhabi (0.14)
- Asia > Indonesia > Borneo > Kalimantan > East Kalimantan > Nusantara (0.04)
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- Information Technology > Artificial Intelligence > Natural Language > Large Language Model (1.00)
- Information Technology > Artificial Intelligence > Natural Language > Information Retrieval (1.00)
- Information Technology > Artificial Intelligence > Machine Learning > Neural Networks > Deep Learning (1.00)
Culture Cartography: Mapping the Landscape of Cultural Knowledge
Ziems, Caleb, Held, William, Yu, Jane, Goldberg, Amir, Grusky, David, Yang, Diyi
To serve global users safely and productively, LLMs need culture-specific knowledge that might not be learned during pre-training. How do we find such knowledge that is (1) salient to in-group users, but (2) unknown to LLMs? The most common solutions are single-initiative: either researchers define challenging questions that users passively answer (traditional annotation), or users actively produce data that researchers structure as benchmarks (knowledge extraction). The process would benefit from mixed-initiative collaboration, where users guide the process to meaningfully reflect their cultures, and LLMs steer the process towards more challenging questions that meet the researcher's goals. We propose a mixed-initiative methodology called CultureCartography. Here, an LLM initializes annotation with questions for which it has low-confidence answers, making explicit both its prior knowledge and the gaps therein. This allows a human respondent to fill these gaps and steer the model towards salient topics through direct edits. We implement this methodology as a tool called CultureExplorer. Compared to a baseline where humans answer LLM-proposed questions, we find that CultureExplorer more effectively produces knowledge that leading models like DeepSeek R1 and GPT-4o are missing, even with web search. Fine-tuning on this data boosts the accuracy of Llama-3.1-8B by up to 19.2% on related culture benchmarks.
- Asia > Thailand > Bangkok > Bangkok (0.04)
- Africa > Nigeria > Ogun State > Abeokuta (0.04)
- North America > United States > Florida > Miami-Dade County > Miami (0.04)
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Global PIQA: Evaluating Physical Commonsense Reasoning Across 100+ Languages and Cultures
Chang, Tyler A., Arnett, Catherine, Eldesokey, Abdelrahman, Sadallah, Abdelrahman, Kashar, Abeer, Daud, Abolade, Olanihun, Abosede Grace, Mohammed, Adamu Labaran, Praise, Adeyemi, Sharma, Adhikarinayum Meerajita, Gupta, Aditi, Iyigun, Afitab, Simplício, Afonso, Essouaied, Ahmed, Chorana, Aicha, Eppa, Akhil, Oladipo, Akintunde, Ramesh, Akshay, Dorkin, Aleksei, Kondoro, Alfred Malengo, Aji, Alham Fikri, Çetintaş, Ali Eren, Hanbury, Allan, Dembele, Alou, Niksarli, Alp, Arroyo, Álvaro, Bajand, Amin, Khanna, Amol, Chkhaidze, Ana, Condez, Ana, Mkhonto, Andiswa, Hoblitzell, Andrew, Tran, Andrew, Poulis, Angelos, Majumder, Anirban, Vacalopoulou, Anna, Wong, Annette Kuuipolani Kanahele, Simonsen, Annika, Kovalev, Anton, S, Ashvanth., Lana, Ayodeji Joseph, Kinay, Barkin, Alhafni, Bashar, Busole, Benedict Cibalinda, Ghanem, Bernard, Nathani, Bharti, Đurić, Biljana Stojanovska, Agbonile, Bola, Bergsson, Bragi, Fischer, Bruce Torres, Tutar, Burak, Çınar, Burcu Alakuş, Kane, Cade J. Kanoniakapueo, Udomcharoenchaikit, Can, Arnett, Catherine, Helwe, Chadi, Nerella, Chaithra Reddy, Liu, Chen Cecilia, Nwokolo, Chiamaka Glory, España-Bonet, Cristina, Amol, Cynthia, Lee, DaeYeop, Arad, Dana, Dzenhaliou, Daniil, Pugacheva, Daria, Choi, Dasol, Abolade, Daud, Liu, David, Semedo, David, Popoola, Deborah, Mataciunas, Deividas, Nyaboke, Delphine, Kumar, Dhyuthy Krishna, Glória-Silva, Diogo, Tavares, Diogo, Goyal, Divyanshu, Lee, DongGeon, Anajemba, Ebele Nwamaka, Grace, Egonu Ngozi, Mickel, Elena, Tutubalina, Elena, Herranen, Elias, Anand, Emile, Habumuremyi, Emmanuel, Ajiboye, Emuobonuvie Maria, Yulianrifat, Eryawan Presma, Adenuga, Esther, Rudnicka, Ewa, Itiola, Faith Olabisi, Butt, Faran Taimoor, Thekkekara, Fathima, Haouari, Fatima, Tjiaranata, Filbert Aurelian, Laakom, Firas, Grasso, Francesca, Orabona, Francesco, Periti, Francesco, Solomon, Gbenga Kayode, Ngo, Gia Nghia, Udhehdhe-oze, Gloria, Martins, Gonçalo, Challagolla, Gopi Naga Sai Ram, Son, Guijin, Abdykadyrova, Gulnaz, Einarsson, Hafsteinn, Hu, Hai, Saffari, Hamidreza, Zaidi, Hamza, Zhang, Haopeng, Shairah, Harethah Abu, Vuong, Harry, Kuulmets, Hele-Andra, Bouamor, Houda, Yu, Hwanjo, Debess, Iben Nyholm, Deveci, İbrahim Ethem, Hanif, Ikhlasul Akmal, Cho, Ikhyun, Calvo, Inês, Vieira, Inês, Manzi, Isaac, Daud, Ismail, Itzhak, Itay, Iuliia, null, Alekseenko, null, Belashkin, Ivan, Spada, Ivan, Zhelyazkov, Ivan, Brinton, Jacob, Isbarov, Jafar, Čibej, Jaka, Čuhel, Jan, Kocoń, Jan, Krito, Jauza Akbar, Purbey, Jebish, Mickel, Jennifer, Za, Jennifer, Kunz, Jenny, Jeong, Jihae, Dávalos, Jimena Tena, Lee, Jinu, Magalhães, João, Yi, John, Kim, Jongin, Chataignon, Joseph, Imperial, Joseph Marvin, Thevakumar, Jubeerathan, Land, Judith, Jiang, Junchen, Kim, Jungwhan, Sirts, Kairit, R, Kamesh, V, Kamesh, Tshinu, Kanda Patrick, Kukk, Kätriin, Ponkshe, Kaustubh, Huseynova, Kavsar, He, Ke, Buchanan, Kelly, Sarveswaran, Kengatharaiyer, Zaman, Kerem, Mrini, Khalil, Kyars, Kian, Kruusmaa, Krister, Chouhan, Kusum, Krishnakumar, Lainitha, Sánchez, Laura Castro, Moscoso, Laura Porrino, Choshen, Leshem, Sencan, Levent, Øvrelid, Lilja, Alazraki, Lisa, Ehimen-Ugbede, Lovina, Thevakumar, Luheerathan, Thavarasa, Luxshan, Malik, Mahnoor, Keita, Mamadou K., Jangid, Mansi, De Santis, Marco, García, Marcos, Suppa, Marek, D'Ciofalo, Mariam, Ojastu, Marii, Sikander, Maryam, Narayan, Mausami, Skandalis, Maximos, Mehak, Mehak, Bozkurt, Mehmet İlteriş, Workie, Melaku Bayu, Velayuthan, Menan, Leventhal, Michael, Marcińczuk, Michał, Potočnjak, Mirna, Shafiei, Mohammadamin, Sharma, Mridul, Indoria, Mrityunjaya, Habibi, Muhammad Ravi Shulthan, Kolić, Murat, Galant, Nada, Permpredanun, Naphat, Maugin, Narada, Corrêa, Nicholas Kluge, Ljubešić, Nikola, Thomas, Nirmal, de Silva, Nisansa, Joshi, Nisheeth, Ponkshe, Nitish, Habash, Nizar, Udeze, Nneoma C., Thomas, Noel, Ligeti-Nagy, Noémi, Coulibaly, Nouhoum, Faustin, Nsengiyumva, Buliaminu, Odunayo Kareemat, Ogundepo, Odunayo, Fejiro, Oghojafor Godswill, Funmilola, Ogundipe Blessing, God'spraise, Okechukwu, Samuel, Olanrewaju, Oluwaseun, Olaoye Deborah, Akindejoye, Olasoji, Popova, Olga, Snissarenko, Olga, Chiemezie, Onyinye Anulika, Kinay, Orkun, Tursun, Osman, Moses, Owoeye Tobiloba, Joshua, Oyelade Oluwafemi, Fiyinfoluwa, Oyesanmi, Gamallo, Pablo, Fernández, Pablo Rodríguez, Arora, Palak, Valente, Pedro, Rupnik, Peter, Ekiugbo, Philip Oghenesuowho, Sahoo, Pramit, Prokopidis, Prokopis, Niau-Puhipau, Pua, Yahya, Quadri, Mignone, Rachele, Singhal, Raghav, Kadiyala, Ram Mohan Rao, Merx, Raphael, Afolayan, Rapheal, Rajalakshmi, Ratnavel, Ghosh, Rishav, Oji, Romina, Solis, Ron Kekeha, Guerra, Rui, Zawar, Rushikesh, Bashir, Sa'ad Nasir, Alzaabi, Saeed, Sandeep, Sahil, Batchu, Sai Pavan, Kantareddy, SaiSandeep, Pranida, Salsabila Zahirah, Buchanan, Sam, Rutunda, Samuel, Land, Sander, Sulollari, Sarah, Ali, Sardar, Sapkota, Saroj, Tautvaisas, Saulius, Sen, Sayambhu, Banerjee, Sayantani, Diarra, Sebastien, M, SenthilNathan., Lee, Sewoong, Shah, Shaan, Venkitachalam, Shankar, Djurabaeva, Sharifa, Ibejih, Sharon, Dutta, Shivanya Shomir, Gupta, Siddhant, Suárez, Silvia Paniagua, Ahmadi, Sina, Sukumar, Sivasuthan, Song, Siyuan, A., Snegha, Sofianopoulos, Sokratis, Simon, Sona Elza, Benčina, Sonja, Gvasalia, Sophie, More, Sphurti Kirit, Dragazis, Spyros, Kaufhold, Stephan P., S, Suba., AlRashed, Sultan, Ranathunga, Surangika, Someya, Taiga, Pungeršek, Taja Kuzman, Haklay, Tal, Jibril, Tasi'u, Aoyama, Tatsuya, Abashidze, Tea, Cruz, Terenz Jomar Dela, Blevins, Terra, Nikas, Themistoklis, Idoko, Theresa Dora, Do, Thu Mai, Chubakov, Tilek, Gargiani, Tommaso, Rathore, Uma, Johannesen, Uni, Ugwu, Uwuma Doris, Putra, Vallerie Alexandra, Kumar, Vanya Bannihatti, Jeyarajalingam, Varsha, Arzt, Varvara, Nedumpozhimana, Vasudevan, Ondrejova, Viktoria, Horbik, Viktoryia, Kummitha, Vishnu Vardhan Reddy, Dinić, Vuk, Sewunetie, Walelign Tewabe, Wu, Winston, Zhao, Xiaojing, Diarra, Yacouba, Nikankin, Yaniv, Mathur, Yash, Chen, Yixi, Li, Yiyuan, Xavier, Yolanda, Belinkov, Yonatan, Abayomi, Yusuf Ismail, Alyafeai, Zaid, Shan, Zhengyang, Tam, Zhi Rui, Tang, Zilu, Nadova, Zuzana, Abbasi, Baber, Biderman, Stella, Stap, David, Ataman, Duygu, Schmidt, Fabian, Gonen, Hila, Wang, Jiayi, Adelani, David Ifeoluwa
To date, there exist almost no culturally-specific evaluation benchmarks for large language models (LLMs) that cover a large number of languages and cultures. In this paper, we present Global PIQA, a participatory commonsense reasoning benchmark for over 100 languages, constructed by hand by 335 researchers from 65 countries around the world. The 116 language varieties in Global PIQA cover five continents, 14 language families, and 23 writing systems. In the non-parallel split of Global PIQA, over 50% of examples reference local foods, customs, traditions, or other culturally-specific elements. We find that state-of-the-art LLMs perform well on Global PIQA in aggregate, but they exhibit weaker performance in lower-resource languages (up to a 37% accuracy gap, despite random chance at 50%). Open models generally perform worse than proprietary models. Global PIQA highlights that in many languages and cultures, everyday knowledge remains an area for improvement, alongside more widely-discussed capabilities such as complex reasoning and expert knowledge. Beyond its uses for LLM evaluation, we hope that Global PIQA provides a glimpse into the wide diversity of cultures in which human language is embedded.
- Education > Educational Setting (0.67)
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- Government (0.67)
KARIPAP: Quantum-Inspired Tensor Network Compression of Large Language Models Using Infinite Projected Entangled Pair States and Tensor Renormalization Group
Large Language Models (LLMs) like ChatGPT and LLaMA drive rapid progress in generative AI, yet their huge parameter scales create severe computational and environmental burdens. High training costs, energy use, and limited device deployment hinder accessibility. Existing compression - pruning, distillation, low-rank, and quantization - reduces size but ignores complex inter-layer correlations. We propose KARIPAP, a quantum-inspired tensor network compression using Infinite Projected Entangled Pair States (iPEPS) and Tensor Renormalization Group (TRG) contraction. Unlike 1D Matrix Product States, iPEPS captures multi-directional entanglement in attention and deep transformer layers. TRG ensures polynomial-time contraction, making tensorization feasible while preserving key correlation geometry. Experiments on LLaMA-2 7B show up to 93% memory and 70% parameter reduction, with 50% faster training, 25% faster inference, and only 2-3% accuracy loss. Layer-wise entanglement profiling reveals redundancy in deeper layers, confirming their suitability for tensor factorization. KARIPAP demonstrates that modern LLMs occupy low-dimensional entanglement manifolds, enabling scalable, energy-efficient, and quantum-aware AI architectures.
Multivariate Latent Recalibration for Conditional Normalizing Flows
Dheur, Victor, Taieb, Souhaib Ben
Reliably characterizing the full conditional distribution of a multivariate response variable given a set of covariates is crucial for trustworthy decision-making. However, misspecified or miscalibrated multivariate models may yield a poor approximation of the joint distribution of the response variables, leading to unreliable predictions and suboptimal decisions. Furthermore, standard recalibration methods are primarily limited to univariate settings, while conformal prediction techniques, despite generating multivariate prediction regions with coverage guarantees, do not provide a full probability density function. We address this gap by first introducing a novel notion of latent calibration, which assesses probabilistic calibration in the latent space of a conditional normalizing flow. Second, we propose latent recalibration (LR), a novel post-hoc model recalibration method that learns a transformation of the latent space with finite-sample bounds on latent calibration. Unlike existing methods, LR produces a recalibrated distribution with an explicit multivariate density function while remaining computationally efficient. Extensive experiments on both tabular and image datasets show that LR consistently improves latent calibration error and the negative log-likelihood of the recalibrated models.
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- North America > United States > Tennessee > Davidson County > Nashville (0.04)
- Europe > United Kingdom > England > Oxfordshire > Oxford (0.04)
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- Information Technology > Data Science (1.00)
- Information Technology > Artificial Intelligence > Representation & Reasoning > Uncertainty (0.68)
- Information Technology > Artificial Intelligence > Machine Learning > Statistical Learning (0.67)
- Information Technology > Artificial Intelligence > Machine Learning > Neural Networks > Deep Learning (0.46)
Bridging Language Gaps with Adaptive RAG: Improving Indonesian Language Question Answering
Christian, William, Adamlu, Daniel, Yu, Adrian, Suhartono, Derwin
Abstract--Question Answering (QA) has seen significant improvements with the advancement of machine learning models, further studies enhanced this question answering system by retrieving external information, called Retrieval-Augmented Generation (RAG) to produce more accurate and informative answers. However, these state-of-the-art-performance is predominantly in English language. T o address this gap we made an effort of bridging language gaps by incorporating Adaptive RAG system to Indonesian language. Adaptive RAG system integrates a classifier whose task is to distinguish the question complexity, which in turn determines the strategy for answering the question. T o overcome the limited availability of Indonesian language dataset, our study employs machine translation as data augmentation approach. Experiments show reliable question complexity classifier; however, we observed significant inconsistencies in multi-retrieval answering strategy which negatively impacted the overall evaluation when this strategy was applied. Recent Large Language Models (LLMs) have shown incredible performance for a lot of Natural Language tasks. However, despite the advancement of LLMs in all tasks in natural language processing, they still have problems answering questions that require a knowledge-intensive background, often resulting in hallucination answers [7]. LLMs often provide accurate answers when entities mentioned in the question are present in their training data. Furthermore, the performance of the models has a significant correlation with the entity popularity; less popular entities are often not answered accurately by LLMs [8]. Updating the LLM's knowledge frequently is not a good solution since the training of LLM with billions or even trillions of data from all over the internet takes too much time. In contrast, recent studies have demonstrated that augmenting non-parametric knowledge (information not contained in the model's training data) to the question-answering method commonly referred to as Retrieval Augmented Generation (RAG) [9], even smaller models outperform larger models in terms of parameters [10].
LLM-Guided Synthetic Augmentation (LGSA) for Mitigating Bias in AI Systems
Karri, Sai Suhruth Reddy, Nallapuneni, Yashwanth Sai, Mallireddy, Laxmi Narasimha Reddy, G, Gopichand
This is the preprint version of the article "LLM - Guided Synthetic Augmentation (LGSA) for Mitigating Bias in AI Systems." This version is made available on arXiv for early dissemination. If accepted, the final authenticated version will be published in the respective venue. Dr. G opichand G School of Computer Science and Engineering Vellore Institute of Technology Vellore - 632014, TamilNadu, India gopichand.g@vit.ac.in Abstract -- Bias in Artificial Intelligence systems, especially those that rely on natural language data, brings up serious ethical and practical issues. When certain groups are underrepresented, it often leads to uneven performance across different demographics. Whil e traditional fairness methods like pre - processing, in - processing, and post - processing can be helpful, they usually depend on protected - attribute labels, create a trade - off between accuracy and fairness, and struggle to adapt across various datas ets. To tackle these challenges, this study presents LLM - Guided Synthetic Augmentation (LGSA), a process that leverages large language models to create counterfactual examples for underrepresented groups while keeping label integrity intact. We put LGSA to the test on a controlled dataset of short English sentences that included gendered pronouns, professions, and binary task labels. The process involved using structured prompts to a large language model to generate gender - swapped paraphrases, followed by a thorough quality control process. This included checking for semantic similarity, verifying attributes, screening for toxi city, and conducting human spot checks. The augmented dataset broadened training coverage and was utilized to train a classifier under consistent experimental conditions. The results showed that LGSA significantly lessens performance disparities without co mpromising accuracy. The baseline model achieved an impressive 96.7% accuracy but had a gender bias gap of 7.2%. A simple swap augmentation brought the gap down to 0.7% but also reduced accuracy to 95.6%. In contrast, LGSA achieved an overall accuracy of 9 9.1%, showing strong performance on female - labeled examples and a reduced gap of 1.9%. These results indicate that LGSA is a powerful and dependable strategy for mitigating bias. By generating diverse and semantically accurate counterfactuals, this method enhances the balance of subgroup performance, narrows bias gaps, and maintains high ove rall task accuracy and label fidelity, showcasing its potential as a practical framework for fairness - focused AI systems.
- Asia > India (0.24)
- Oceania > Australia > New South Wales > Sydney (0.04)
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- Information Technology > Security & Privacy (1.00)
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- Information Technology > Artificial Intelligence > Natural Language > Large Language Model (1.00)
- Information Technology > Artificial Intelligence > Issues > Social & Ethical Issues (1.00)
- Information Technology > Artificial Intelligence > Machine Learning > Performance Analysis > Accuracy (0.46)
- Information Technology > Artificial Intelligence > Machine Learning > Neural Networks > Deep Learning (0.46)
Enhancing Bankruptcy Prediction of Banks through Advanced Machine Learning Techniques: An Innovative Approach and Analysis
Rustam, Zuherman, Hartini, Sri, Islam, Sardar M. N., Novkaniza, Fevi, Aszhari, Fiftitah R., Rifqi, Muhammad
Context: Financial system stability is determined by the condition of the banking system. A bank failure can destroy the stability of the financial system, as banks are subject to systemic risk, affecting not only individual banks but also segments or the entire financial system. Calculating the probability of a bank going bankrupt is one way to ensure the banking system is safe and sound. Existing literature and limitations: Statistical models, such as Altman's Z-Score, are one of the common techniques for developing a bankruptcy prediction model. However, statistical methods rely on rigid and sometimes irrelevant assumptions, which can result in low forecast accuracy. New approaches are necessary. Objective of the research: Bankruptcy models are developed using machine learning techniques, such as logistic regression (LR), random forest (RF), and support vector machines (SVM). According to several studies, machine learning is also more accurate and effective than statistical methods for categorising and forecasting banking risk management. Present Research: The commercial bank data are derived from the annual financial statements of 44 active banks and 21 bankrupt banks in Turkey from 1994 to 2004, and the rural bank data are derived from the quarterly financial reports of 43 active and 43 bankrupt rural banks in Indonesia between 2013 and 2019. Five rural banks in Indonesia have also been selected to demonstrate the feasibility of analysing bank bankruptcy trends. Findings and implications: The results of the research experiments show that RF can forecast data from commercial banks with a 90% accuracy rate. Furthermore, the three machine learning methods proposed accurately predict the likelihood of rural bank bankruptcy. Contribution and Conclusion: The proposed innovative machine learning approach help to implement policies that reduce the costs of bankruptcy.
- Asia > Middle East > Republic of Türkiye (0.26)
- Europe > United Kingdom (0.04)
- North America > United States > New York (0.04)
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- Banking & Finance > Financial Services (0.49)
- Information Technology > Security & Privacy (0.48)