Industry
Are Foundation Models Useful for Bankruptcy Prediction?
Kostrzewa, Marcin, Furman, Oleksii, Furman, Roman, Tomczak, Sebastian, Zięba, Maciej
Foundation models have shown promise across various financial applications, yet their effectiveness for corporate bankruptcy prediction remains systematically unevaluated against established methods. We study bankruptcy forecasting using Llama-3.3-70B-Instruct and TabPFN, evaluated on large, highly imbalanced datasets of over one million company records from the Visegrád Group. We provide the first systematic comparison of foundation models against classical machine learning baselines for this task. Our results show that models such as XGBoost and CatBoost consistently outperform foundation models across all prediction horizons. LLM-based approaches suffer from unreliable probability estimates, undermining their use in risk-sensitive financial settings. TabPFN, while competitive with simpler baselines, requires substantial computational resources with costs not justified by performance gains. These findings suggest that, despite their generality, current foundation models remain less effective than specialized methods for bankruptcy forecasting.
Unsupervised Graph Neural Network Framework for Balanced Multipatterning in Advanced Electronic Design Automation Layouts
Helaly, Abdelrahman, Sakr, Nourhan, Madkour, Kareem, Torunoglu, Ilhami
Abstract-- Multipatterning is an essential decomposition strategy in electronic design automation (EDA) that overcomes lithographic limitations when printing dense circuit layouts. Although heuristic-based backtracking and SA T solvers can address these challenges, they often struggle to simultaneously handle both complex constraints and secondary objectives. In this study, we present a hybrid workflow that casts multipatterning as a variant of a constrained graph coloring problem with the primary objective of minimizing feature violations and a secondary objective of balancing the number of features on each mask. Our pipeline integrates two main components: (1) A GNN-based agent, trained in an unsupervised manner to generate initial color predictions, which are refined by (2) refinement strategies (a GNN-based heuristic and simulated annealing) that together enhance solution quality and balance. Experimental evaluation in both proprietary data sets and publicly available open source layouts demonstrate complete conflict-free decomposition and consistent color balancing. The proposed framework provides a reproducible, data-efficient and deployable baseline for scalable layout decomposition in EDA workflows. As semiconductor technology progresses, the demand for higher circuit densities continues to surpass the limits of conventional lithographic techniques. The ongoing reduction in feature size introduces increasingly complex manufacturing constraints, making it difficult to accurately print intricate patterns on a single mask without defects. To address these challenges, modern electronic design automation (EDA) tools and fabrication processes rely on multipatterning, which is a layout decomposition technique that ensures manufacturability while preserving design integrity. In modern integrated circuit (IC) design, Design Rule Checking (DRC) is a critical step that ensures that the physical layout complies with a set of rules derived from the manufacturing constraints. These rules include the requirements on spacing, width, enclosure, and other geometric and connectivity constraints.
Reducing Instability in Synthetic Data Evaluation with a Super-Metric in MalDataGen
da Silva, Anna Luiza Gomes, Kreutz, Diego, Diniz, Angelo, Mansilha, Rodrigo, da Fonseca, Celso Nobre
Evaluating the quality of synthetic data remains a persistent challenge in the Android malware domain due to instability and the lack of standardization among existing metrics. Experiments involving ten generative models and five balanced datasets demonstrate that the Super-Metric is more stable and consistent than traditional metrics, exhibiting stronger correlations with the actual performance of classifiers. Synthetic data generation has become an increasingly relevant strategy in cybersecurity [1], [2], [3], particularly as a way to mitigate the scarcity of real, complete, and high-quality datasets that limit the performance and generalization of machine learning models. Despite these advances, assessing the quality of synthetic data remains a complex and largely non-standardized methodological challenge [4], with no clear consensus on which metrics should be used or how to combine them consistently. The literature reports a significant fragmentation in the application of fidelity metrics, with studies identifying more than 65 distinct indicators used independently to assess fidelity [5]. This diversity hinders model-to-model comparison, reduces experimental reproducibility, and complicates the integrated interpretation of data quality.
The Shawshank Redemption of Embodied AI: Understanding and Benchmarking Indirect Environmental Jailbreaks
Li, Chunyang, Kang, Zifeng, Zhang, Junwei, Ma, Zhuo, Cheng, Anda, Li, Xinghua, Ma, Jianfeng
The adoption of Vision-Language Models (VLMs) in embodied AI agents, while being effective, brings safety concerns such as jailbreaking. Prior work have explored the possibility of directly jailbreaking the embodied agents through elaborated multi-modal prompts. However, no prior work has studied or even reported indirect jailbreaks in embodied AI, where a black-box attacker induces a jailbreak without issuing direct prompts to the embodied agent. In this paper, we propose, for the first time, indirect environmental jailbreak (IEJ), a novel attack to jailbreak embodied AI via indirect prompt injected into the environment, such as malicious instructions written on a wall. Our key insight is that embodied AI does not ''think twice'' about the instructions provided by the environment -- a blind trust that attackers can exploit to jailbreak the embodied agent. We further design and implement open-source prototypes of two fully-automated frameworks: SHAWSHANK, the first automatic attack generation framework for the proposed attack IEJ; and SHAWSHANK-FORGE, the first automatic benchmark generation framework for IEJ. Then, using SHAWSHANK-FORGE, we automatically construct SHAWSHANK-BENCH, the first benchmark for indirectly jailbreaking embodied agents. Together, our two frameworks and one benchmark answer the questions of what content can be used for malicious IEJ instructions, where they should be placed, and how IEJ can be systematically evaluated. Evaluation results show that SHAWSHANK outperforms eleven existing methods across 3,957 task-scene combinations and compromises all six tested VLMs. Furthermore, current defenses only partially mitigate our attack, and we have responsibly disclosed our findings to all affected VLM vendors.
VersaPants: A Loose-Fitting Textile Capacitive Sensing System for Lower-Body Motion Capture
Kasap, Deniz, Najafi, Taraneh Aminosharieh, Thevenot, Jérôme Paul Rémy, Dan, Jonathan, Albini, Stefano, Atienza, David
We present VersaPants, the first loose-fitting, textile-based capacitive sensing system for lower-body motion capture, built on the open-hardware VersaSens platform. By integrating conductive textile patches and a compact acquisition unit into a pair of pants, the system reconstructs lower-body pose without compromising comfort. Unlike IMU-based systems that require user-specific fitting or camera-based methods that compromise privacy, our approach operates without fitting adjustments and preserves user privacy. VersaPants is a custom-designed smart garment featuring 6 capacitive channels per leg. We employ a lightweight Transformer-based deep learning model that maps capacitance signals to joint angles, enabling embedded implementation on edge platforms. To test our system, we collected approximately 3.7 hours of motion data from 11 participants performing 16 daily and exercise-based movements. The model achieves a mean per-joint position error (MPJPE) of 11.96 cm and a mean per-joint angle error (MPJAE) of 12.3 degrees across the hip, knee, and ankle joints, indicating the model's ability to generalize to unseen users and movements. A comparative analysis of existing textile-based deep learning architectures reveals that our model achieves competitive reconstruction performance with up to 22 times fewer parameters and 18 times fewer FLOPs, enabling real-time inference at 42 FPS on a commercial smartwatch without quantization. These results position VersaPants as a promising step toward scalable, comfortable, and embedded motion-capture solutions for fitness, healthcare, and wellbeing applications.
Beyond Generative AI: World Models for Clinical Prediction, Counterfactuals, and Planning
Qazi, Mohammad Areeb, Nadeem, Maryam, Yaqub, Mohammad
Healthcare requires AI that is predictive, reliable, and data-efficient. However, recent generative models lack physical foundation and temporal reasoning required for clinical decision support. As scaling language models show diminishing returns for grounded clinical reasoning, world models are gaining traction because they learn multimodal, temporally coherent, and action-conditioned representations that reflect the physical and causal structure of care. This paper reviews World Models for healthcare systems that learn predictive dynamics to enable multistep rollouts, counterfactual evaluation and planning. We survey recent work across three domains: (i) medical imaging and diagnostics (e.g., longitudinal tumor simulation, projection-transition modeling, and Joint Embedding Predictive Architecture i.e., JEPA-style predictive representation learning), (ii) disease progression modeling from electronic health records (generative event forecasting at scale), and (iii) robotic surgery and surgical planning (action-conditioned guidance and control). We also introduce a capability rubric: L1 temporal prediction, L2 action-conditioned prediction, L3 counterfactual rollouts for decision support, and L4 planning/control. Most reviewed systems achieve L1--L2, with fewer instances of L3 and rare L4. We identify cross-cutting gaps that limit clinical reliability; under-specified action spaces and safety constraints, weak interventional validation, incomplete multimodal state construction, and limited trajectory-level uncertainty calibration. This review outlines a research agenda for clinically robust prediction-first world models that integrate generative backbones (transformers, diffusion, VAE) with causal/mechanical foundation for safe decision support in healthcare.
Incorporating Self-Rewriting into Large Language Model Reasoning Reinforcement
Yao, Jiashu, Huang, Heyan, Zeng, Shuang, Luo, Chuwei, You, WangJie, Tang, Jie, Liu, Qingsong, Guo, Yuhang, Kang, Yangyang
Through reinforcement learning (RL) with outcome correctness rewards, large reasoning models (LRMs) with scaled inference computation have demonstrated substantial success on complex reasoning tasks. However, the one-sided reward, focused solely on final correctness, limits its ability to provide detailed supervision over internal reasoning process. This deficiency leads to suboptimal internal reasoning quality, manifesting as issues like over-thinking, under-thinking, redundant-thinking, and disordered-thinking. Inspired by the recent progress in LRM self-rewarding, we introduce self-rewriting framework, where a model rewrites its own reasoning texts, and subsequently learns from the rewritten reasoning to improve the internal thought process quality. For algorithm design, we propose a selective rewriting approach wherein only "simple" samples, defined by the model's consistent correctness, are rewritten, thereby preserving all original reward signals of GRPO. For practical implementation, we compile rewriting and vanilla generation within one single batch, maintaining the scalability of the RL algorithm and introducing only ~10% overhead. Extensive experiments on diverse tasks with different model sizes validate the effectiveness of self-rewriting. In terms of the accuracy-length tradeoff, the self-rewriting approach achieves improved accuracy (+0.6) with substantially shorter reasoning (-46%) even without explicit instructions in rewriting prompts to reduce reasoning length, outperforming existing strong baselines. In terms of internal reasoning quality, self-rewriting achieves significantly higher scores (+7.2) under the LLM-as-a-judge metric, successfully mitigating internal reasoning flaws.
SDA: Steering-Driven Distribution Alignment for Open LLMs without Fine-Tuning
With the rapid advancement of large language models (LLMs), their deployment in real-world applications has become increasingly widespread. LLMs are expected to deliver robust performance across diverse tasks, user preferences, and practical scenarios. However, as demands grow, ensuring that LLMs produce responses aligned with human intent remains a foundational challenge. In particular, aligning model behavior effectively and efficiently during inference, without costly retraining or extensive supervision, is both a critical requirement and a non-trivial technical endeavor. To address the challenge, we propose SDA (Steering-Driven Distribution Alignment), a training-free and model-agnostic alignment framework designed for open-source LLMs. SDA dynamically redistributes model output probabilities based on user-defined alignment instructions, enhancing alignment between model behavior and human intents without fine-tuning. The method is lightweight, resource-efficient, and compatible with a wide range of open-source LLMs. It can function independently during inference or be integrated with training-based alignment strategies. Moreover, SDA supports personalized preference alignment, enabling flexible control over the model response behavior. Empirical results demonstrate that SDA consistently improves alignment performance across 8 open-source LLMs with varying scales and diverse origins, evaluated on three key alignment dimensions, helpfulness, harmlessness, and honesty (3H). Specifically, SDA achieves average gains of 64.4% in helpfulness, 30% in honesty and 11.5% in harmlessness across the tested models, indicating its effectiveness and generalization across diverse models and application scenarios.
Sparse Autoencoders are Topic Models
Girrbach, Leander, Akata, Zeynep
Sparse autoencoders (SAEs) are used to analyze embeddings, but their role and practical value are debated. We propose a new perspective on SAEs by demonstrating that they can be naturally understood as topic models. We extend Latent Dirichlet Allocation to embedding spaces and derive the SAE objective as a maximum a posteriori estimator under this model. This view implies SAE features are thematic components rather than steerable directions. Based on this, we introduce SAE-TM, a topic modeling framework that: (1) trains an SAE to learn reusable topic atoms, (2) interprets them as word distributions on downstream data, and (3) merges them into any number of topics without retraining. SAE-TM yields more coherent topics than strong baselines on text and image datasets while maintaining diversity. Finally, we analyze thematic structure in image datasets and trace topic changes over time in Japanese woodblock prints. Our work positions SAEs as effective tools for large-scale thematic analysis across modalities. Code and data will be released upon publication.
Distributed Agent Reasoning Across Independent Systems With Strict Data Locality
Vaughan, Daniel, Vaughan, Kateřina
This paper presents a proof-of-concept demonstration of agent-to-agent communication across distributed systems, using only natural-language messages and without shared identifiers, structured schemas, or centralised data exchange. The prototype explores how multiple organisations (represented here as a Clinic, Insurer, and Specialist Network) can cooperate securely via pseudonymised case tokens, local data lookups, and controlled operational boundaries. The system uses Orpius as the underlying platform for multi-agent orchestration, tool execution, and privacy-preserving communication. All agents communicate through OperationRelay calls, exchanging concise natural-language summaries. Each agent operates on its own data (such as synthetic clinic records, insurance enrolment tables, and clinical guidance extracts), and none receives or reconstructs patient identity. The Clinic computes an HMAC-based pseudonymous token, the Insurer evaluates coverage rules and consults the Specialist agent, and the Specialist returns an appropriateness recommendation. The goal of this prototype is intentionally limited: to demonstrate feasibility, not to provide a clinically validated, production-ready system. No clinician review was conducted, and no evaluation beyond basic functional runs was performed. The work highlights architectural patterns, privacy considerations, and communication flows that enable distributed reasoning among specialised agents while keeping data local to each organisation. We conclude by outlining opportunities for more rigorous evaluation and future research in decentralised multi-agent systems.