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Multi-Agent Reinforcement Learning for Dynamic Pricing in Supply Chains: Benchmarking Strategic Agent Behaviours under Realistically Simulated Market Conditions

Hazenberg, Thomas, Ma, Yao, Ziabari, Seyed Sahand Mohammadi, van Rijswijk, Marijn

arXiv.org Artificial Intelligence

This study investigates how Multi-Agent Reinforcement Learning (MARL) can improve dynamic pricing strategies in supply chains, particularly in contexts where traditional ERP systems rely on static, rule-based approaches that overlook strategic interactions among market actors. While recent research has applied reinforcement learning to pricing, most implementations remain single-agent and fail to model the interdependent nature of real-world supply chains. This study addresses that gap by evaluating the performance of three MARL algorithms: MADDPG, MADQN, and QMIX against static rule-based baselines, within a simulated environment informed by real e-commerce transaction data and a LightGBM demand prediction model. Results show that rule-based agents achieve near-perfect fairness (Jain's Index: 0.9896) and the highest price stability (volatility: 0.024), but they fully lack competitive dynamics. Among MARL agents, MADQN exhibits the most aggressive pricing behaviour, with the highest volatility and the lowest fairness (0.5844). MADDPG provides a more balanced approach, supporting market competition (share volatility: 9.5 pp) while maintaining relatively high fairness (0.8819) and stable pricing. These findings suggest that MARL introduces emergent strategic behaviour not captured by static pricing rules and may inform future developments in dynamic pricing.


Scoring the Unscorables: Cyber Risk Assessment Beyond Internet Scans

Sarabi, Armin, Karir, Manish, Liu, Mingyan

arXiv.org Artificial Intelligence

In this paper we present a study on using novel data types to perform cyber risk quantification by estimating the likelihood of a data breach. We demonstrate that it is feasible to build a highly accurate cyber risk assessment model using public and readily available technology signatures obtained from crawling an organization's website. This approach overcomes the limitations of previous similar approaches that relied on large-scale IP address based scanning data, which suffers from incomplete/missing IP address mappings as well as the lack of such data for large numbers of small and medium-sized organizations (SMEs). In comparison to scan data, technology digital signature data is more readily available for millions of SMEs. Our study shows that there is a strong relationship between these technology signatures and an organization's cybersecurity posture. In cross-validating our model using different cyber incident datasets, we also highlight the key differences between ransomware attack victims and the larger population of cyber incident and data breach victims.


Code-Driven Law NO, Normware SI!

Sileno, Giovanni

arXiv.org Artificial Intelligence

The concept of code-driven law, i.e. of "legal norms or policies that have been articulated in computer code" by some actors with normative competence, has been convincingly elaborated by Hildebrandt [1]. Its introduction has the merit to refocus the discussion on the role of artificial devices in the legal activity, rather than on ontological positions expressed under code-is-law or law-is-code banners, which are present, with various interpretations and changing fortunes, in the literature and practice of contemporary regulatory technologies, and technology-oriented legal scholarship (see the overview in [2]). According to Hildebrandt, code-driven law should be distinguished from data-driven law, i.e. computational decision-making derived from statistical or other inductive methods, and from text-driven law, i.e. the legal activity performed by humans by means of sources of norms such as statutory and case law. A crucial difference between these forms of "law" is that the linguistic artifacts used in text-driven law are characterized by open-textured concepts (e.g.


Dynamic Normativity: Necessary and Sufficient Conditions for Value Alignment

Corrêa, Nicholas Kluge

arXiv.org Artificial Intelligence

The critical inquiry pervading the realm of Philosophy, and perhaps extending its influence across all Humanities disciplines, revolves around the intricacies of morality and normativity. Surprisingly, in recent years, this thematic thread has woven its way into an unexpected domain, one not conventionally associated with pondering "what ought to be": the field of artificial intelligence (AI) research. Central to morality and AI, we find "alignment", a problem related to the challenges of expressing human goals and values in a manner that artificial systems can follow without leading to unwanted adversarial effects. More explicitly and with our current paradigm of AI development in mind, we can think of alignment as teaching human values to non-anthropomorphic entities trained through opaque, gradient-based learning techniques. This work addresses alignment as a technical-philosophical problem that requires solid philosophical foundations and practical implementations that bring normative theory to AI system development. To accomplish this, we propose two sets of necessary and sufficient conditions that, we argue, should be considered in any alignment process. While necessary conditions serve as metaphysical and metaethical roots that pertain to the permissibility of alignment, sufficient conditions establish a blueprint for aligning AI systems under a learning-based paradigm. After laying such foundations, we present implementations of this approach by using state-of-the-art techniques and methods for aligning general-purpose language systems. We call this framework Dynamic Normativity. Its central thesis is that any alignment process under a learning paradigm that cannot fulfill its necessary and sufficient conditions will fail in producing aligned systems.


AI-Powered Autonomous Weapons Risk Geopolitical Instability and Threaten AI Research

Simmons-Edler, Riley, Badman, Ryan, Longpre, Shayne, Rajan, Kanaka

arXiv.org Artificial Intelligence

The recent embrace of machine learning (ML) in the development of autonomous weapons systems (AWS) creates serious risks to geopolitical stability and the free exchange of ideas in AI research. This topic has received comparatively little attention of late compared to risks stemming from superintelligent artificial general intelligence (AGI), but requires fewer assumptions about the course of technological development and is thus a nearer-future issue. ML is already enabling the substitution of AWS for human soldiers in many battlefield roles, reducing the upfront human cost, and thus political cost, of waging offensive war. In the case of peer adversaries, this increases the likelihood of "low intensity" conflicts which risk escalation to broader warfare. In the case of non-peer adversaries, it reduces the domestic blowback to wars of aggression. This effect can occur regardless of other ethical issues around the use of military AI such as the risk of civilian casualties, and does not require any superhuman AI capabilities. Further, the military value of AWS raises the specter of an AI-powered arms race and the misguided imposition of national security restrictions on AI research. Our goal in this paper is to raise awareness among the public and ML researchers on the near-future risks posed by full or near-full autonomy in military technology, and we provide regulatory suggestions to mitigate these risks. We call upon AI policy experts and the defense AI community in particular to embrace transparency and caution in their development and deployment of AWS to avoid the negative effects on global stability and AI research that we highlight here.


Decentralised Moderation for Interoperable Social Networks: A Conversation-based Approach for Pleroma and the Fediverse

Agarwal, Vibhor, Raman, Aravindh, Sastry, Nishanth, Abdelmoniem, Ahmed M., Tyson, Gareth, Castro, Ignacio

arXiv.org Artificial Intelligence

The recent development of decentralised and interoperable social networks (such as the "fediverse") creates new challenges for content moderators. This is because millions of posts generated on one server can easily "spread" to another, even if the recipient server has very different moderation policies. An obvious solution would be to leverage moderation tools to automatically tag (and filter) posts that contravene moderation policies, e.g. related to toxic speech. Recent work has exploited the conversational context of a post to improve this automatic tagging, e.g. using the replies to a post to help classify if it contains toxic speech. This has shown particular potential in environments with large training sets that contain complete conversations. This, however, creates challenges in a decentralised context, as a single conversation may be fragmented across multiple servers. Thus, each server only has a partial view of an entire conversation because conversations are often federated across servers in a non-synchronized fashion. To address this, we propose a decentralised conversation-aware content moderation approach suitable for the fediverse. Our approach employs a graph deep learning model (GraphNLI) trained locally on each server. The model exploits local data to train a model that combines post and conversational information captured through random walks to detect toxicity. We evaluate our approach with data from Pleroma, a major decentralised and interoperable micro-blogging network containing 2 million conversations. Our model effectively detects toxicity on larger instances, exclusively trained using their local post information (0.8837 macro-F1). Our approach has considerable scope to improve moderation in decentralised and interoperable social networks such as Pleroma or Mastodon.


SunBlock: Cloudless Protection for IoT Systems

Safronov, Vadim, Mandalari, Anna Maria, Dubois, Daniel J., Choffnes, David, Haddadi, Hamed

arXiv.org Artificial Intelligence

With an increasing number of Internet of Things (IoT) devices present in homes, there is a rise in the number of potential information leakage channels and their associated security threats and privacy risks. Despite a long history of attacks on IoT devices in unprotected home networks, the problem of accurate, rapid detection and prevention of such attacks remains open. Many existing IoT protection solutions are cloud-based, sometimes ineffective, and might share consumer data with unknown third parties. This paper investigates the potential for effective IoT threat detection locally, on a home router, using AI tools combined with classic rule-based traffic-filtering algorithms. Our results show that with a slight rise of router hardware resources caused by machine learning and traffic filtering logic, a typical home router instrumented with our solution is able to effectively detect risks and protect a typical home IoT network, equaling or outperforming existing popular solutions, without any effects on benign IoT functionality, and without relying on cloud services and third parties.


NormBank: A Knowledge Bank of Situational Social Norms

Ziems, Caleb, Dwivedi-Yu, Jane, Wang, Yi-Chia, Halevy, Alon, Yang, Diyi

arXiv.org Artificial Intelligence

We present NormBank, a knowledge bank of 155k situational norms. This resource is designed to ground flexible normative reasoning for interactive, assistive, and collaborative AI systems. Unlike prior commonsense resources, NormBank grounds each inference within a multivalent sociocultural frame, which includes the setting (e.g., restaurant), the agents' contingent roles (waiter, customer), their attributes (age, gender), and other physical, social, and cultural constraints (e.g., the temperature or the country of operation). In total, NormBank contains 63k unique constraints from a taxonomy that we introduce and iteratively refine here. Constraints then apply in different combinations to frame social norms. Under these manipulations, norms are non-monotonic - one can cancel an inference by updating its frame even slightly. Still, we find evidence that neural models can help reliably extend the scope and coverage of NormBank. We further demonstrate the utility of this resource with a series of transfer experiments.


Many or Few Samples? Comparing Transfer, Contrastive and Meta-Learning in Encrypted Traffic Classification

Guarino, Idio, Wang, Chao, Finamore, Alessandro, Pescape, Antonio, Rossi, Dario

arXiv.org Artificial Intelligence

The popularity of Deep Learning (DL), coupled with network traffic visibility reduction due to the increased adoption of HTTPS, QUIC and DNS-SEC, re-ignited interest towards Traffic Classification (TC). However, to tame the dependency from task-specific large labeled datasets we need to find better ways to learn representations that are valid across tasks. In this work we investigate this problem comparing transfer learning, meta-learning and contrastive learning against reference Machine Learning (ML) tree-based and monolithic DL models (16 methods total). Using two publicly available datasets, namely MIRAGE19 (40 classes) and AppClassNet (500 classes), we show that (i) using large datasets we can obtain more general representations, (ii) contrastive learning is the best methodology and (iii) meta-learning the worst one, and (iv) while ML tree-based cannot handle large tasks but fits well small tasks, by means of reusing learned representations, DL methods are reaching tree-based models performance also for small tasks.


Prediction of drug effectiveness in rheumatoid arthritis patients based on machine learning algorithms

Chen, Shengjia, Gupta, Nikunj, Galbraith, Woodward B., Shah, Valay, Cirrone, Jacopo

arXiv.org Artificial Intelligence

Rheumatoid arthritis (RA) is an autoimmune condition caused when patients' immune system mistakenly targets their own tissue. Machine learning (ML) has the potential to identify patterns in patient electronic health records (EHR) to forecast the best clinical treatment to improve patient outcomes. This study introduced a Drug Response Prediction (DRP) framework with two main goals: 1) design a data processing pipeline to extract information from tabular clinical data, and then preprocess it for functional use, and 2) predict RA patient's responses to drugs and evaluate classification models' performance. We propose a novel two-stage ML framework based on European Alliance of Associations for Rheumatology (EULAR) criteria cutoffs to model drug effectiveness. Our model Stacked-Ensemble DRP was developed and cross-validated using data from 425 RA patients. The evaluation used a subset of 124 patients (30%) from the same data source. In the evaluation of the test set, two-stage DRP leads to improved classification accuracy over other end-to-end classification models for binary classification. Our proposed method provides a complete pipeline to predict disease activity scores and identify the group that does not respond well to anti-TNF treatments, thus showing promise in supporting clinical decisions based on EHR information.