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Integrating AI's Carbon Footprint into Risk Management Frameworks: Strategies and Tools for Sustainable Compliance in Banking Sector

arXiv.org Artificial Intelligence

This paper examines the integration of AI's carbon footprint into the risk management frameworks (RMFs) of the banking sector, emphasising its importance in aligning with sustainability goals and regulatory requirements. As AI becomes increasingly central to banking operations, its energy-intensive processes contribute significantly to carbon emissions, posing environmental, regulatory, and reputational risks. Regulatory frameworks such as the EU AI Act, Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and the Prudential Regulation Authority's SS1/23 are driving banks to incorporate environmental considerations into their AI model governance. Recent advancements in AI research, like the Open Mixture-of-Experts (OLMoE) framework and the Agentic RAG framework, offer more efficient and dynamic AI models, reducing their carbon footprint without compromising performance. Using these technological examples, the paper outlines a structured approach for banks to identify, assess, and mitigate AI's carbon footprint within their RMFs, including adopting energy-efficient models, utilising green cloud computing, and implementing lifecycle management.


Gaps or Hallucinations? Gazing into Machine-Generated Legal Analysis for Fine-grained Text Evaluations

arXiv.org Artificial Intelligence

Large Language Models (LLMs) show promise as a writing aid for professionals performing legal analyses. However, LLMs can often hallucinate in this setting, in ways difficult to recognize by non-professionals and existing text evaluation metrics. In this work, we pose the question: when can machine-generated legal analysis be evaluated as acceptable? We introduce the neutral notion of gaps, as opposed to hallucinations in a strict erroneous sense, to refer to the difference between human-written and machine-generated legal analysis. Gaps do not always equate to invalid generation. Working with legal experts, we consider the CLERC generation task proposed in Hou et al. (2024b), leading to a taxonomy, a fine-grained detector for predicting gap categories, and an annotated dataset for automatic evaluation. Our best detector achieves 67% F1 score and 80% precision on the test set. Employing this detector as an automated metric on legal analysis generated by SOTA LLMs, we find around 80% contain hallucinations of different kinds.


Regulating AI Is Easier Than You Think

TIME - Tech

Artificial intelligence is poised to deliver tremendous benefits to society. But, as many have pointed out, it could also bring unprecedented new horrors. As a general-purpose technology, the same tools that will advance scientific discovery could also be used to develop cyber, chemical, or biological weapons. Governing AI will require widely sharing its benefits while keeping the most powerful AI out of the hands of bad actors. The good news is that there is already a template on how to do just that.


Security News This Week: A Creative Trick Makes ChatGPT Spit Out Bomb-Making Instructions

WIRED

After Apple's product launch event this week, WIRED did a deep dive on the company's new secure server environment, known as Private Cloud Compute, which attempts to replicate in the cloud the security and privacy of processing data locally on users' individual devices. The goal is to minimize possible exposure of data processed for Apple Intelligence, the company's new AI platform. In addition to hearing about PCC from Apple's senior vice president of software engineering, Craig Federighi, WIRED readers also received a first look at content generated by Apple Intelligence's "Image Playground" feature as part of crucial updates on the recent birthday of Federighi's dog Bailey. Turning to privacy protection of a very different kind in another new AI service, WIRED looked at how users of the social media platform X can keep their data from being slurped up by the "unhinged" generative AI tool from xAI known as Grok AI. And in other news about Apple products, researchers developed a technique for using eye tracking to discern passwords and PINs people typed using 3D Apple Vision Pro avatars--a sort of keylogger for mixed reality.


From Experts to the Public: Governing Multimodal Language Models in Politically Sensitive Video Analysis

arXiv.org Artificial Intelligence

This paper examines the governance of multimodal large language models (MM-LLMs) through individual and collective deliberation, focusing on analyses of politically sensitive videos. We conducted a two-step study: first, interviews with 10 journalists established a baseline understanding of expert video interpretation; second, 114 individuals from the general public engaged in deliberation using Inclusive.AI, a platform that facilitates democratic decision-making through decentralized autonomous organization (DAO) mechanisms. Our findings show that while experts emphasized emotion and narrative, the general public prioritized factual clarity, objectivity of the situation, and emotional neutrality. Additionally, we explored the impact of different governance mechanisms: quadratic vs. weighted ranking voting and equal vs. 20-80 power distributions on users decision-making on how AI should behave. Specifically, quadratic voting enhanced perceptions of liberal democracy and political equality, and participants who were more optimistic about AI perceived the voting process to have a higher level of participatory democracy. Our results suggest the potential of applying DAO mechanisms to help democratize AI governance.


ValueCompass: A Framework of Fundamental Values for Human-AI Alignment

arXiv.org Artificial Intelligence

As AI systems become more advanced, ensuring their alignment with a diverse range of individuals and societal values becomes increasingly critical. But how can we capture fundamental human values and assess the degree to which AI systems align with them? We introduce ValueCompass, a framework of fundamental values, grounded in psychological theory and a systematic review, to identify and evaluate human-AI alignment. We apply ValueCompass to measure the value alignment of humans and language models (LMs) across four real-world vignettes: collaborative writing, education, public sectors, and healthcare. Our findings uncover risky misalignment between humans and LMs, such as LMs agreeing with values like "Choose Own Goals", which are largely disagreed by humans. We also observe values vary across vignettes, underscoring the necessity for context-aware AI alignment strategies. This work provides insights into the design space of human-AI alignment, offering foundations for developing AI that responsibly reflects societal values and ethics.


Controllable Unlearning for Image-to-Image Generative Models via $\varepsilon$-Constrained Optimization

arXiv.org Artificial Intelligence

While generative models have made significant advancements in recent years, they also raise concerns such as privacy breaches and biases. Machine unlearning has emerged as a viable solution, aiming to remove specific training data, e.g., containing private information and bias, from models. In this paper, we study the machine unlearning problem in Image-to-Image (I2I) generative models. Previous studies mainly treat it as a single objective optimization problem, offering a solitary solution, thereby neglecting the varied user expectations towards the trade-off between complete unlearning and model utility. To address this issue, we propose a controllable unlearning framework that uses a control coefficient $\varepsilon$ to control the trade-off. We reformulate the I2I generative model unlearning problem into a $\varepsilon$-constrained optimization problem and solve it with a gradient-based method to find optimal solutions for unlearning boundaries. These boundaries define the valid range for the control coefficient. Within this range, every yielded solution is theoretically guaranteed with Pareto optimality. We also analyze the convergence rate of our framework under various control functions. Extensive experiments on two benchmark datasets across three mainstream I2I models demonstrate the effectiveness of our controllable unlearning framework.


Prevailing Research Areas for Music AI in the Era of Foundation Models

arXiv.org Artificial Intelligence

In tandem with the recent advancements in foundation model research, there has been a surge of generative music AI applications within the past few years. As the idea of AI-generated or AI-augmented music becomes more mainstream, many researchers in the music AI community may be wondering what avenues of research are left. With regards to music generative models, we outline the current areas of research with significant room for exploration. Firstly, we pose the question of foundational representation of these generative models and investigate approaches towards explainability. Next, we discuss the current state of music datasets and their limitations. We then overview different generative models, forms of evaluating these models, and their computational constraints/limitations. Subsequently, we highlight applications of these generative models towards extensions to multiple modalities and integration with artists' workflow as well as music education systems. Finally, we survey the potential copyright implications of generative music and discuss strategies for protecting the rights of musicians. While it is not meant to be exhaustive, our survey calls to attention a variety of research directions enabled by music foundation models.


Using Synthetic Data to Mitigate Unfairness and Preserve Privacy through Single-Shot Federated Learning

arXiv.org Artificial Intelligence

To address unfairness issues in federated learning (FL), contemporary approaches typically use frequent model parameter updates and transmissions between the clients and server. In such a process, client-specific information (e.g., local dataset size or data-related fairness metrics) must be sent to the server to compute, e.g., aggregation weights. All of this results in high transmission costs and the potential leakage of client information. As an alternative, we propose a strategy that promotes fair predictions across clients without the need to pass information between the clients and server iteratively and prevents client data leakage. For each client, we first use their local dataset to obtain a synthetic dataset by solving a bilevel optimization problem that addresses unfairness concerns during the learning process. We then pass each client's synthetic dataset to the server, the collection of which is used to train the server model using conventional machine learning techniques (that do not take fairness metrics into account). Thus, we eliminate the need to handle fairness-specific aggregation weights while preserving client privacy. Our approach requires only a single communication between the clients and the server, thus making it computationally cost-effective, able to maintain privacy, and able to ensuring fairness. We present empirical evidence to demonstrate the advantages of our approach. The results illustrate that our method effectively uses synthetic data as a means to mitigate unfairness and preserve client privacy.


From spy cams to deepfake porn: fury in South Korea as women targeted again

The Guardian

For the second time in just a few years, South Korean women took to the streets of Seoul to demand an end to sexual abuse. When the country spearheaded Asia's #MeToo movement, the culprit was molka – spy cams used to record women without their knowledge. Now their fury was directed at an epidemic of deepfake pornography. For Juhee Jin, 26, a Seoul resident who advocates for women's rights, the emergence of this new menace, in which women and girls are again the targets, was depressingly predictable. "This should have been addressed a long time ago," says Jin, a translator.