Government
Disentangling the sources of cyber risk premia
Maréchal, Loïc, Monnet, Nathan
We use a methodology based on a machine learning algorithm to quantify firms' cyber risks based on their disclosures and a dedicated cyber corpus. The model can identify paragraphs related to determined cyber-threat types and accordingly attribute several related cyber scores to the firm. The cyber scores are unrelated to other firms' characteristics. Stocks with high cyber scores significantly outperform other stocks. The long-short cyber risk factors have positive risk premia, are robust to all factors' benchmarks, and help price returns. Furthermore, we suggest the market does not distinguish between different types of cyber risks but instead views them as a single, aggregate cyber risk.
What Is Wrong with My Model? Identifying Systematic Problems with Semantic Data Slicing
Yang, Chenyang, Hong, Yining, Lewis, Grace A., Wu, Tongshuang, Kästner, Christian
Machine learning models make mistakes, yet sometimes it is difficult to identify the systematic problems behind the mistakes. Practitioners engage in various activities, including error analysis, testing, auditing, and red-teaming, to form hypotheses of what can go (or has gone) wrong with their models. To validate these hypotheses, practitioners employ data slicing to identify relevant examples. However, traditional data slicing is limited by available features and programmatic slicing functions. In this work, we propose SemSlicer, a framework that supports semantic data slicing, which identifies a semantically coherent slice, without the need for existing features. SemSlicer uses Large Language Models to annotate datasets and generate slices from any user-defined slicing criteria. We show that SemSlicer generates accurate slices with low cost, allows flexible trade-offs between different design dimensions, reliably identifies under-performing data slices, and helps practitioners identify useful data slices that reflect systematic problems.
Towards Resilient and Efficient LLMs: A Comparative Study of Efficiency, Performance, and Adversarial Robustness
With the increasing demand for practical applications of Large Language Models (LLMs), many attention-efficient models have been developed to balance performance and computational cost. However, the adversarial robustness of these models remains under-explored. In this work, we design a framework to investigate the trade-off between efficiency, performance, and adversarial robustness of LLMs and conduct extensive experiments on three prominent models with varying levels of complexity and efficiency -- Transformer++, Gated Linear Attention (GLA) Transformer, and MatMul-Free LM -- utilizing the GLUE and AdvGLUE datasets. The AdvGLUE dataset extends the GLUE dataset with adversarial samples designed to challenge model robustness. Our results show that while the GLA Transformer and MatMul-Free LM achieve slightly lower accuracy on GLUE tasks, they demonstrate higher efficiency and either superior or comparative robustness on AdvGLUE tasks compared to Transformer++ across different attack levels. These findings highlight the potential of simplified architectures to achieve a compelling balance between efficiency, performance, and adversarial robustness, offering valuable insights for applications where resource constraints and resilience to adversarial attacks are critical.
Sybil Detection using Graph Neural Networks
Heeb, Stuart, Plesner, Andreas, Wattenhofer, Roger
This paper presents SYBILGAT, a novel approach to Sybil detection in social networks using Graph Attention Networks (GATs). Traditional methods for Sybil detection primarily leverage structural properties of networks; however, they tend to struggle with a large number of attack edges and are often unable to simultaneously utilize both known Sybil and honest nodes. Our proposed method addresses these limitations by dynamically assigning attention weights to different nodes during aggregations, enhancing detection performance. We conducted extensive experiments in various scenarios, including pretraining in sampled subgraphs, synthetic networks, and networks under targeted attacks. The results show that SYBILGAT significantly outperforms the state-of-the-art algorithms, particularly in scenarios with high attack complexity and when the number of attack edges increases. Our approach shows robust performance across different network models and sizes, even as the detection task becomes more challenging. We successfully applied the model to a real-world Twitter graph with more than 269k nodes and 6.8M edges. The flexibility and generalizability of SYBILGAT make it a promising tool to defend against Sybil attacks in online social networks with only structural information.
AI-LieDar: Examine the Trade-off Between Utility and Truthfulness in LLM Agents
Su, Zhe, Zhou, Xuhui, Rangreji, Sanketh, Kabra, Anubha, Mendelsohn, Julia, Brahman, Faeze, Sap, Maarten
To be safely and successfully deployed, LLMs must simultaneously satisfy truthfulness and utility goals. Yet, often these two goals compete (e.g., an AI agent assisting a used car salesman selling a car with flaws), partly due to ambiguous or misleading user instructions. We propose AI-LieDar, a framework to study how LLM-based agents navigate scenarios with utility-truthfulness conflicts in a multi-turn interactive setting. We design a set of realistic scenarios where language agents are instructed to achieve goals that are in conflict with being truthful during a multi-turn conversation with simulated human agents. To evaluate the truthfulness at large scale, we develop a truthfulness detector inspired by psychological literature to assess the agents' responses. Our experiment demonstrates that all models are truthful less than 50% of the time, although truthfulness and goal achievement (utility) rates vary across models. We further test the steerability of LLMs towards truthfulness, finding that models follow malicious instructions to deceive, and even truth-steered models can still lie. These findings reveal the complex nature of truthfulness in LLMs and underscore the importance of further research to ensure the safe and reliable deployment of LLMs and AI agents.
Online Network Inference from Graph-Stationary Signals with Hidden Nodes
Buciulea, Andrei, Navarro, Madeline, Rey, Samuel, Segarra, Santiago, Marques, Antonio G.
Graph learning is the fundamental task of estimating unknown graph connectivity from available data. Typical approaches assume that not only is all information available simultaneously but also that all nodes can be observed. However, in many real-world scenarios, data can neither be known completely nor obtained all at once. We present a novel method for online graph estimation that accounts for the presence of hidden nodes. We consider signals that are stationary on the underlying graph, which provides a model for the unknown connections to hidden nodes. We then formulate a convex optimization problem for graph learning from streaming, incomplete graph signals. We solve the proposed problem through an efficient proximal gradient algorithm that can run in real-time as data arrives sequentially. Additionally, we provide theoretical conditions under which our online algorithm is similar to batch-wise solutions. Through experimental results on synthetic and real-world data, we demonstrate the viability of our approach for online graph learning in the presence of missing observations.
Applying Action Masking and Curriculum Learning Techniques to Improve Data Efficiency and Overall Performance in Operational Technology Cyber Security using Reinforcement Learning
Wilson, Alec, Holmes, William, Menzies, Ryan, Whitehead, Kez Smithson
In previous work, the IPMSRL environment (Integrated Platform Management System Reinforcement Learning environment) was developed with the aim of training defensive RL agents in a simulator representing a subset of an IPMS on a maritime vessel under a cyber-attack. This paper extends the use of IPMSRL to enhance realism including the additional dynamics of false positive alerts and alert delay. Applying curriculum learning, in the most difficult environment tested, resulted in an episode reward mean increasing from a baseline result of -2.791 to -0.569. Applying action masking, in the most difficult environment tested, resulted in an episode reward mean increasing from a baseline result of -2.791 to -0.743. Importantly, this level of performance was reached in less than 1 million timesteps, which was far more data efficient than vanilla PPO which reached a lower level of performance after 2.5 million timesteps. The training method which resulted in the highest level of performance observed in this paper was a combination of the application of curriculum learning and action masking, with a mean episode reward of 0.137. This paper also introduces a basic hardcoded defensive agent encoding a representation of cyber security best practice, which provides context to the episode reward mean figures reached by the RL agents. The hardcoded agent managed an episode reward mean of -1.895. This paper therefore shows that applications of curriculum learning and action masking, both independently and in tandem, present a way to overcome the complex real-world dynamics that are present in operational technology cyber security threat remediation.
Affective Computing Has Changed: The Foundation Model Disruption
Schuller, Björn, Mallol-Ragolta, Adria, Almansa, Alejandro Peña, Tsangko, Iosif, Amin, Mostafa M., Semertzidou, Anastasia, Christ, Lukas, Amiriparian, Shahin
The dawn of Foundation Models has on the one hand revolutionised a wide range of research problems, and, on the other hand, democratised the access and use of AI-based tools by the general public. We even observe an incursion of these models into disciplines related to human psychology, such as the Affective Computing domain, suggesting their affective, emerging capabilities. In this work, we aim to raise awareness of the power of Foundation Models in the field of Affective Computing by synthetically generating and analysing multimodal affective data, focusing on vision, linguistics, and speech (acoustics). We also discuss some fundamental problems, such as ethical issues and regulatory aspects, related to the use of Foundation Models in this research area.
Can Kans (re)discover predictive models for Direct-Drive Laser Fusion?
Ejaz, Rahman, Gopalaswamy, Varchas, Betti, Riccardo, Lees, Aarne, Kanan, Christopher
The domain of laser fusion presents a unique and challenging predictive modeling application landscape for machine learning methods due to high problem complexity and limited training data. Data-driven approaches utilizing prescribed functional forms, inductive biases and physics-informed learning (PIL) schemes have been successful in the past for achieving desired generalization ability and model interpretation that aligns with physics expectations. In complex multi-physics application domains, however, it is not always obvious how architectural biases or discriminative penalties can be formulated. In this work, focusing on nuclear fusion energy using high powered lasers, we present the use of Kolmogorov-Arnold Networks (KANs) as an alternative to PIL for developing a new type of data-driven predictive model which is able to achieve high prediction accuracy and physics interpretability. A KAN based model, a MLP with PIL, and a baseline MLP model are compared in generalization ability and interpretation with a domain expert-derived symbolic regression model. Through empirical studies in this high physics complexity domain, we show that KANs can potentially provide benefits when developing predictive models for data-starved physics applications.
Bridging Dynamic Factor Models and Neural Controlled Differential Equations for Nowcasting GDP
Lim, Seonkyu, Choi, Jeongwhan, Park, Noseong, Yoon, Sang-Ha, Kang, ShinHyuck, Kim, Young-Min, Kang, Hyunjoong
Gross domestic product (GDP) nowcasting is crucial for policy-making as GDP growth is a key indicator of economic conditions. Dynamic factor models (DFMs) have been widely adopted by government agencies for GDP nowcasting due to their ability to handle irregular or missing macroeconomic indicators and their interpretability. However, DFMs face two main challenges: i) the lack of capturing economic uncertainties such as sudden recessions or booms, and ii) the limitation of capturing irregular dynamics from mixed-frequency data. To address these challenges, we introduce NCDENow, a novel GDP nowcasting framework that integrates neural controlled differential equations (NCDEs) with DFMs. This integration effectively handles the dynamics of irregular time series. NCDENow consists of 3 main modules: i) factor extraction leveraging DFM, ii) dynamic modeling using NCDE, and iii) GDP growth prediction through regression. We evaluate NCDENow against 6 baselines on 2 real-world GDP datasets from South Korea and the United Kingdom, demonstrating its enhanced predictive capability. Our empirical results favor our method, highlighting the significant potential of integrating NCDE into nowcasting models. Our code and dataset are available at https://github.com/sklim84/NCDENow_CIKM2024.