Law
Copyright and Competition: Estimating Supply and Demand with Unstructured Data
Copyright policies play a pivotal role in protecting the intellectual property of creators and companies in creative industries. The advent of cost-reducing technologies, such as generative AI, in these industries calls for renewed attention to the role of these policies. This paper studies product positioning and competition in a market of creatively differentiated products and the competitive and welfare effects of copyright protection. A common feature of products with creative elements is that their key attributes (e.g., images and text) are unstructured and thus high-dimensional. We focus on a stylized design product, fonts, and use data from the world's largest online marketplace for fonts. We use neural network embeddings to quantify unstructured attributes and measure the visual similarity. We show that this measure closely aligns with actual human perception. Based on this measure, we empirically find that competitions occur locally in the visual characteristics space. We then develop a structural model for supply and demand that integrate the embeddings. Through counterfactual analyses, we find that local copyright protection can enhance consumer welfare when products are relocated, and the interplay between copyright and cost-reducing technologies is essential in determining an optimal policy for social welfare. We believe that the embedding analysis and empirical models introduced in this paper can be applicable to a range of industries where unstructured data captures essential features of products and markets.
MEL: Legal Spanish Language Model
Sánchez, David Betancur, García, Nuria Aldama, Jiménez, Álvaro Barbero, Nieto, Marta Guerrero, Morales, Patricia Marsà, Salas, Nicolás Serrano, Hernán, Carlos García, Coll, Pablo Haya, Ponsoda, Elena Montiel, Ibáñez, Pablo Calleja
Legal texts, characterized by complex and specialized terminology, present a significant challenge for Language Models. Adding an underrepresented language, such as Spanish, to the mix makes it even more challenging. While pre-trained models like XLM-RoBERTa have shown capabilities in handling multilingual corpora, their performance on domain specific documents remains underexplored. This paper presents the development and evaluation of MEL, a legal language model based on XLM-RoBERTa-large, fine-tuned on legal documents such as BOE (Bolet\'in Oficial del Estado, the Spanish oficial report of laws) and congress texts. We detail the data collection, processing, training, and evaluation processes. Evaluation benchmarks show a significant improvement over baseline models in understanding the legal Spanish language. We also present case studies demonstrating the model's application to new legal texts, highlighting its potential to perform top results over different NLP tasks.
Is Open Source the Future of AI? A Data-Driven Approach
Vake, Domen, Šinik, Bogdan, Vičič, Jernej, Tošić, Aleksandar
Large Language Models (LLMs) have become central in academia and industry, raising concerns about privacy, transparency, and misuse. A key issue is the trustworthiness of proprietary models, with open-sourcing often proposed as a solution. However, open-sourcing presents challenges, including potential misuse, financial disincentives, and intellectual property concerns. Proprietary models, backed by private sector resources, are better positioned for return on investment. There are also other approaches that lie somewhere on the spectrum between completely open-source and proprietary. These can largely be categorised into open-source usage limitations protected by licensing, partially open-source (open weights) models, hybrid approaches where obsolete model versions are open-sourced, while competitive versions with market value remain proprietary. Currently, discussions on where on the spectrum future models should fall on remains unbacked and mostly opinionated where industry leaders are weighing in on the discussion. In this paper, we present a data-driven approach by compiling data on open-source development of LLMs, and their contributions in terms of improvements, modifications, and methods. Our goal is to avoid supporting either extreme but rather present data that will support future discussions both by industry experts as well as policy makers. Our findings indicate that open-source contributions can enhance model performance, with trends such as reduced model size and manageable accuracy loss. We also identify positive community engagement patterns and architectures that benefit most from open contributions.
Governing the Agent-to-Agent Economy of Trust via Progressive Decentralization
Current approaches to AI governance often fall short in anticipating a future where AI agents manage critical tasks, such as financial operations, administrative functions, and beyond. As AI agents may eventually delegate tasks among themselves to optimize efficiency, understanding the foundational principles of human value exchange could offer insights into how AI-driven economies might operate. Just as trust and value exchange are central to human interactions in open marketplaces, they may also be critical for enabling secure and efficient interactions among AI agents. While cryptocurrencies could serve as the foundation for monetizing value exchange in a collaboration and delegation dynamic among AI agents, a critical question remains: how can these agents reliably determine whom to trust, and how can humans ensure meaningful oversight and control as an economy of AI agents scales and evolves? This paper is a call for a collective exploration of cryptoeconomic incentives, which can help design decentralized governance systems that allow AI agents to autonomously interact and exchange value while ensuring human oversight via progressive decentralization. Toward this end, I propose a research agenda to address the question of agent-to-agent trust using AgentBound Tokens, which are non-transferable, non-fungible tokens uniquely tied to individual AI agents, akin to Soulbound tokens for humans in Web3. By staking ABTs as collateral for autonomous actions within an agent-to-agent network via a proof-of-stake mechanism, agents may be incentivized towards ethical behavior, and penalties for misconduct are automatically enforced.
Characterizing Network Structure of Anti-Trans Actors on TikTok
Leitner, Maxyn, Dorn, Rebecca, Morstatter, Fred, Lerman, Kristina
The recent proliferation of short form video social media sites such as TikTok has been effectively utilized for increased visibility, communication, and community connection amongst trans/nonbinary creators online. However, these same platforms have also been exploited by right-wing actors targeting trans/nonbinary people, enabling such anti-trans actors to efficiently spread hate speech and propaganda. Given these divergent groups, what are the differences in network structure between anti-trans and pro-trans communities on TikTok, and to what extent do they amplify the effects of anti-trans content? In this paper, we collect a sample of TikTok videos containing pro and anti-trans content, and develop a taxonomy of trans related sentiment to enable the classification of content on TikTok, and ultimately analyze the reply network structures of pro-trans and anti-trans communities. In order to accomplish this, we worked with hired expert data annotators from the trans/nonbinary community in order to generate a sample of highly accurately labeled data. From this subset, we utilized a novel classification pipeline leveraging Retrieval-Augmented Generation (RAG) with annotated examples and taxonomy definitions to classify content into pro-trans, anti-trans, or neutral categories. We find that incorporating our taxonomy and its logics into our classification engine results in improved ability to differentiate trans related content, and that Results from network analysis indicate many interactions between posters of pro-trans and anti-trans content exist, further demonstrating targeting of trans individuals, and demonstrating the need for better content moderation tools
Exploring the sustainable scaling of AI dilemma: A projective study of corporations' AI environmental impacts
Desroches, Clément, Chauvin, Martin, Ladan, Louis, Vateau, Caroline, Gosset, Simon, Cordier, Philippe
The rapid growth of artificial intelligence (AI), particularly Large Language Models (LLMs), has raised concerns regarding its global environmental impact that extends beyond greenhouse gas emissions to include consideration of hardware fabrication and end-of-life processes. The opacity from major providers hinders companies' abilities to evaluate their AI-related environmental impacts and achieve net-zero targets. In this paper, we propose a methodology to estimate the environmental impact of a company's AI portfolio, providing actionable insights without necessitating extensive AI and Life-Cycle Assessment (LCA) expertise. Results confirm that large generative AI models consume up to 4600x more energy than traditional models. Our modelling approach, which accounts for increased AI usage, hardware computing efficiency, and changes in electricity mix in line with IPCC scenarios, forecasts AI electricity use up to 2030. Under a high adoption scenario, driven by widespread Generative AI and agents adoption associated to increasingly complex models and frameworks, AI electricity use is projected to rise by a factor of 24.4. Mitigating the environmental impact of Generative AI by 2030 requires coordinated efforts across the AI value chain. Isolated measures in hardware efficiency, model efficiency, or grid improvements alone are insufficient. We advocate for standardized environmental assessment frameworks, greater transparency from the all actors of the value chain and the introduction of a "Return on Environment" metric to align AI development with net-zero goals.
Open Problems in Mechanistic Interpretability
Sharkey, Lee, Chughtai, Bilal, Batson, Joshua, Lindsey, Jack, Wu, Jeff, Bushnaq, Lucius, Goldowsky-Dill, Nicholas, Heimersheim, Stefan, Ortega, Alejandro, Bloom, Joseph, Biderman, Stella, Garriga-Alonso, Adria, Conmy, Arthur, Nanda, Neel, Rumbelow, Jessica, Wattenberg, Martin, Schoots, Nandi, Miller, Joseph, Michaud, Eric J., Casper, Stephen, Tegmark, Max, Saunders, William, Bau, David, Todd, Eric, Geiger, Atticus, Geva, Mor, Hoogland, Jesse, Murfet, Daniel, McGrath, Tom
Mechanistic interpretability aims to understand the computational mechanisms underlying neural networks' capabilities in order to accomplish concrete scientific and engineering goals. Progress in this field thus promises to provide greater assurance over AI system behavior and shed light on exciting scientific questions about the nature of intelligence. Despite recent progress toward these goals, there are many open problems in the field that require solutions before many scientific and practical benefits can be realized: Our methods require both conceptual and practical improvements to reveal deeper insights; we must figure out how best to apply our methods in pursuit of specific goals; and the field must grapple with socio-technical challenges that influence and are influenced by our work. This forward-facing review discusses the current frontier of mechanistic interpretability and the open problems that the field may benefit from prioritizing. This review collects the perspectives of its various authors and represents a synthesis of their views by Apollo Research on behalf of Schmidt Sciences. The perspectives presented here do not necessarily reflect the views of any individual author or the institutions with which they are affiliated.
Reconciling Predictive Multiplicity in Practice
Behzad, Tina, Casacuberta, Sílvia, Diana, Emily Ruth, Tolbert, Alexander Williams
Many machine learning applications predict individual probabilities, such as the likelihood that a person develops a particular illness. Since these probabilities are unknown, a key question is how to address situations in which different models trained on the same dataset produce varying predictions for certain individuals. This issue is exemplified by the model multiplicity (MM) phenomenon, where a set of comparable models yield inconsistent predictions. Roth, Tolbert, and Weinstein recently introduced a reconciliation procedure, the Reconcile algorithm, to address this problem. Given two disagreeing models, the algorithm leverages their disagreement to falsify and improve at least one of the models. In this paper, we empirically analyze the Reconcile algorithm using five widely-used fairness datasets: COMPAS, Communities and Crime, Adult, Statlog (German Credit Data), and the ACS Dataset. We examine how Reconcile fits within the model multiplicity literature and compare it to existing MM solutions, demonstrating its effectiveness. We also discuss potential improvements to the Reconcile algorithm theoretically and practically. Finally, we extend the Reconcile algorithm to the setting of causal inference, given that different competing estimators can again disagree on specific causal average treatment effect (CATE) values. We present the first extension of the Reconcile algorithm in causal inference, analyze its theoretical properties, and conduct empirical tests. Our results confirm the practical effectiveness of Reconcile and its applicability across various domains.
PRISMe: A Novel LLM-Powered Tool for Interactive Privacy Policy Assessment
Freiberger, Vincent, Fleig, Arthur, Buchmann, Erik
This results in significant privacy risks, such as automated influence [7], manipulation [54], and potential security breaches. Yet, while companies invest heavily in acquiring and analyzing their users' personal data, users without extensive research or background knowledge lack awareness of the associated privacy risks [29] or have distorted perceptions of risks [31], which results in irrational decisions [1]. Regulations such as the GDPR [25] force companies to communicate data management practices and users' rights regarding their data in privacy policies, to enhance users' decision-making. However, evidence shows that companies focus on compliance, effectively targeting lawyers instead of users [78], so users rarely read privacy policies [61]. Using LLMs to automatically assess privacy policies is a promising approach to solve this issue [37, 72, 91]. Yet, no prior work evaluates their impact on understandability and risk awareness from a user's perspective through a user study. Additionally, to the best of our knowledge, no existing tool combines LLM-based automatic privacy policy assessment with: (i) dynamic evaluation criteria not focused on compliance but tailored to type of platform (e.g., e-commerce or health services); (ii) an interactive dashboard; and (iii) a chat for open conversations with the LLM with (iv) customizable explanations and responses that adapt to the user's preferences for detail and complexity. To address these gaps, we introduce PRISMe (Privacy Risk Information Scanner for Me), a Chrome extenstion with the above features designed to empower users in making informed privacy decisions. To evaluate PRISMe, we conducted a scenario-based, mixed-methods user study with a qualitative focus.
Impact and influence of modern AI in metadata management
Yang, Wenli, Fu, Rui, Amin, Muhammad Bilal, Kang, Byeong
Metadata management plays a critical role in data governance, resource discovery, and decision-making in the data-driven era. While traditional metadata approaches have primarily focused on organization, classification, and resource reuse, the integration of modern artificial intelligence (AI) technologies has significantly transformed these processes. This paper investigates both traditional and AI-driven metadata approaches by examining open-source solutions, commercial tools, and research initiatives. A comparative analysis of traditional and AI-driven metadata management methods is provided, highlighting existing challenges and their impact on next-generation datasets. The paper also presents an innovative AI-assisted metadata management framework designed to address these challenges. This framework leverages more advanced modern AI technologies to automate metadata generation, enhance governance, and improve the accessibility and usability of modern datasets. Finally, the paper outlines future directions for research and development, proposing opportunities to further advance metadata management in the context of AI-driven innovation and complex datasets.