This paper develops a practical framework for using observational data to audit the consumer surplus effects of AI-driven decisions, specifically in targeted pricing and algorithmic lending. Traditional approaches first estimate demand functions and then integrate to compute consumer surplus, but these methods can be challenging to implement in practice due to model misspecification in parametric demand forms and the large data requirements and slow convergence of flexible nonparametric or machine learning approaches. Instead, we exploit the randomness inherent in modern algorithmic pricing, arising from the need to balance exploration and exploitation, and introduce an estimator that avoids explicit estimation and numerical integration of the demand function. Each observed purchase outcome at a randomized price is an unbiased estimate of demand and by carefully reweighting purchase outcomes using novel cumulative propensity weights (CPW), we are able to reconstruct the integral. Building on this idea, we introduce a doubly robust variant named the augmented cumulative propensity weighting (ACPW) estimator that only requires one of either the demand model or the historical pricing policy distribution to be correctly specified. Furthermore, this approach facilitates the use of flexible machine learning methods for estimating consumer surplus, since it achieves fast convergence rates by incorporating an estimate of demand, even when the machine learning estimate has slower convergence rates. Neither of these estimators is a standard application of off-policy evaluation techniques as the target estimand, consumer surplus, is unobserved. To address fairness, we extend this framework to an inequality-aware surplus measure, allowing regulators and firms to quantify the profit-equity trade-off. Finally, we validate our methods through comprehensive numerical studies.

Contextual bandit algorithms are useful in personalized online decision-making.

Contextual bandit algorithms are useful in personalized online decision-making.

As machine learning models and autonomous agents are increasingly deployed in high-stakes, real-world domains such as healthcare, security, finance, and robotics, the need for transparent and trustworthy explanations has become critical. To ensure end-to-end transparency of AI decisions, we need models that are not only accurate but also fully explainable and human-tunable. We introduce BACON, a novel framework for automatically training explainable AI models for decision making problems using graded logic. BACON achieves high predictive accuracy while offering full structural transparency and precise, logic-based symbolic explanations, enabling effective human-AI collaboration and expert-guided refinement. We evaluate BACON with a diverse set of scenarios: classic Boolean approximation, Iris flower classification, house purchasing decisions and breast cancer diagnosis. In each case, BACON provides high-performance models while producing compact, human-verifiable decision logic. These results demonstrate BACON's potential as a practical and principled approach for delivering crisp, trustworthy explainable AI.

The Internet of Things (IoT) has enabled diverse devices to communicate over the Internet, yet the fragmentation of IoT systems limits seamless data sharing and coordinated management. We have recently introduced SensorsConnect, a unified framework to enable seamless content and sensor data sharing in collaborative IoT systems, inspired by how the World Wide Web (WWW) enabled a shared and accessible space for information among humans. This paper presents the IoT Agentic Search Engine (IoT-ASE), a real-time search engine tailored for IoT environments. IoT-ASE leverages Large Language Models (LLMs) and Retrieval Augmented Generation (RAG) techniques to address the challenge of searching vast, real-time IoT data, enabling it to handle complex queries and deliver accurate, contextually relevant results. We implemented a use-case scenario in Toronto to demonstrate how IoT-ASE can improve service quality recommendations by leveraging real-time IoT data. Our evaluation shows that IoT-ASE achieves a 92\% accuracy in retrieving intent-based services and produces responses that are concise, relevant, and context-aware, outperforming generalized responses from systems like Gemini. These findings highlight the potential IoT-ASE to make real-time IoT data accessible and support effective, real-time decision-making.

Dynamic pricing strategies are crucial for firms to maximize revenue by adjusting prices based on market conditions and customer characteristics. However, designing optimal pricing strategies becomes challenging when historical data are limited, as is often the case when launching new products or entering new markets. One promising approach to overcome this limitation is to leverage information from related products or markets to inform the focal pricing decisions. In this paper, we explore transfer learning for nonparametric contextual dynamic pricing under a covariate shift model, where the marginal distributions of covariates differ between source and target domains while the reward functions remain the same. We propose a novel Transfer Learning for Dynamic Pricing (TLDP) algorithm that can effectively leverage pre-collected data from a source domain to enhance pricing decisions in the target domain. The regret upper bound of TLDP is established under a simple Lipschitz condition on the reward function. To establish the optimality of TLDP, we further derive a matching minimax lower bound, which includes the target-only scenario as a special case and is presented for the first time in the literature. Extensive numerical experiments validate our approach, demonstrating its superiority over existing methods and highlighting its practical utility in real-world applications.

Adapting to the changing climate requires accurate local climate information, a computationally challenging problem. Recent studies have used Generative Adversarial Networks (GANs), a type of deep learning, to learn complex distributions and downscale climate variables efficiently. Capturing variability while downscaling is crucial for estimating uncertainty and characterising extreme events - critical information for climate adaptation. Since downscaling is an undetermined problem, many fine-scale states are physically consistent with the coarse-resolution state. To quantify this ill-posed problem, downscaling techniques should be stochastic, able to sample realisations from a high-resolution distribution conditioned on low-resolution input. Previous stochastic downscaling attempts have found substantial underdispersion, with models failing to represent the full distribution. We propose approaches to improve the stochastic calibration of GANs in three ways: a) injecting noise inside the network, b) adjusting the training process to explicitly account for the stochasticity, and c) using a probabilistic loss metric. We tested our models first on a synthetic dataset with known distributional properties, and then on a realistic downscaling scenario, predicting high-resolution wind components from low-resolution climate covariates. Injecting noise, on its own, substantially improved the quality of conditional and full distributions in tests with synthetic data, but performed less well for wind field downscaling, where models remained underdispersed. For wind downscaling, we found that adjusting the training method and including the probabilistic loss improved calibration. The best model, with all three changes, showed much improved skill at capturing the full variability of the high-resolution distribution and thus at characterising extremes.

This paper introduces Qrlew, an open source library that can parse SQL queries into Relations -- an intermediate representation -- that keeps track of rich data types, value ranges, and row ownership; so that they can easily be rewritten into differentially-private equivalent and turned back into SQL queries for execution in a variety of standard data stores. With Qrlew, a data practitioner can express their data queries in standard SQL; the data owner can run the rewritten query without any technical integration and with strong privacy guarantees on the output; and the query rewriting can be operated by a privacy-expert who must be trusted by the owner, but may belong to a separate organization.

Personalized pricing, which involves tailoring prices based on individual characteristics, is commonly used by firms to implement a consumer-specific pricing policy. In this process, buyers can also strategically manipulate their feature data to obtain a lower price, incurring certain manipulation costs. Such strategic behavior can hinder firms from maximizing their profits. In this paper, we study the contextual dynamic pricing problem with strategic buyers. The seller does not observe the buyer's true feature, but a manipulated feature according to buyers' strategic behavior. In addition, the seller does not observe the buyers' valuation of the product, but only a binary response indicating whether a sale happens or not. Recognizing these challenges, we propose a strategic dynamic pricing policy that incorporates the buyers' strategic behavior into the online learning to maximize the seller's cumulative revenue. We first prove that existing non-strategic pricing policies that neglect the buyers' strategic behavior result in a linear $\Omega(T)$ regret with $T$ the total time horizon, indicating that these policies are not better than a random pricing policy. We then establish that our proposed policy achieves a sublinear regret upper bound of $O(\sqrt{T})$. Importantly, our policy is not a mere amalgamation of existing dynamic pricing policies and strategic behavior handling algorithms. Our policy can also accommodate the scenario when the marginal cost of manipulation is unknown in advance. To account for it, we simultaneously estimate the valuation parameter and the cost parameter in the online pricing policy, which is shown to also achieve an $O(\sqrt{T})$ regret bound. Extensive experiments support our theoretical developments and demonstrate the superior performance of our policy compared to other pricing policies that are unaware of the strategic behaviors.

Batch reinforcement learning (RL) aims at leveraging pre-collected data to find an optimal policy that maximizes the expected total rewards in a dynamic environment. Nearly all existing algorithms rely on the absolutely continuous assumption on the distribution induced by target policies with respect to the data distribution, so that the batch data can be used to calibrate target policies via the change of measure. However, the absolute continuity assumption could be violated in practice (e.g., no-overlap support), especially when the state-action space is large or continuous. In this paper, we propose a new batch RL algorithm without requiring absolute continuity in the setting of an infinite-horizon Markov decision process with continuous states and actions. We call our algorithm STEEL: SingulariTy-awarE rEinforcement Learning. Our algorithm is motivated by a new error analysis on off-policy evaluation, where we use maximum mean discrepancy, together with distributionally robust optimization, to characterize the error of off-policy evaluation caused by the possible singularity and to enable model extrapolation. By leveraging the idea of pessimism and under some mild conditions, we derive a finite-sample regret guarantee for our proposed algorithm without imposing absolute continuity. Compared with existing algorithms, by requiring only minimal data-coverage assumption, STEEL significantly improves the applicability and robustness of batch RL. Extensive simulation studies and one real experiment on personalized pricing demonstrate the superior performance of our method in dealing with possible singularity in batch RL.