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Diffusion probabilistic models have become a cornerstone of modern generative AI, yet the mechanisms underlying their generalization remain poorly understood. In fact, if these models were perfectly minimizing their training loss, they would just generate data belonging to their training set, i.e., memorize, as empirically found in the overparameterized regime. We revisit this view by showing that, in highly overparameterized diffusion models, generalization in natural data domains is progressively achieved during training before the onset of memorization. Our results, ranging from image to language diffusion models, systematically support the empirical law that memorization time is proportional to the dataset size. Generalization vs. memorization is then best understood as a competition between time scales. We show that this phenomenology is recovered in diffusion models learning a simple probabilistic context-free grammar with random rules, where generalization corresponds to the hierarchical acquisition of deeper grammar rules as training time grows, and the generalization cost of early stopping can be characterized. We summarize these results in a phase diagram. Overall, our results support that a principled early-stopping criterion - scaling with dataset size - can effectively optimize generalization while avoiding memorization, with direct implications for hyperparameter transfer and privacy-sensitive applications.

Recent advances in generative artificial intelligence (GenAI) models have enabled the generation of personalized content that adapts to up-to-date user context. While personalized decision systems are often modeled using bandit formulations, the integration of GenAI introduces new structure into otherwise classical sequential learning problems. In GenAI-powered interventions, the agent selects a query, but the environment experiences a stochastic response drawn from the generative model. Standard bandit methods do not explicitly account for this structure, where actions influence rewards only through stochastic, observed treatments. We introduce generator-mediated bandit-Thompson sampling (GAMBITTS), a bandit approach designed for this action/treatment split, using mobile health interventions with large language model-generated text as a motivating case study. GAMBITTS explicitly models both the treatment and reward generation processes, using information in the delivered treatment to accelerate policy learning relative to standard methods. We establish regret bounds for GAMBITTS by decomposing sources of uncertainty in treatment and reward, identifying conditions where it achieves stronger guarantees than standard bandit approaches. In simulation studies, GAMBITTS consistently outperforms conventional algorithms by leveraging observed treatments to more accurately estimate expected rewards.

In this paper, we investigate a quality of experience (QoE)-aware resource allocation problem for reconfigurable intelligent surface (RIS)-assisted digital twin (DT) interaction with uncertain evolution. In the considered system, mobile users are expected to interact with a DT model maintained on a DT server that is deployed on a base station, via effective uplink and downlink channels assisted by an RIS. Our goal is to maximize the sum of all mobile users' joint subjective and objective QoE in DT interactions across various DT scenes, by jointly optimizing phase shift matrix, receive/transmit beamforming matrix, rendering resolution configuration and computing resource allocation. While solving this problem is challenging mainly due to the uncertain evolution of the DT model, which leads to multiple scene-specific problems, and require us to constantly re-solve each of them whenever DT model evolves. To this end, leveraging the dynamic optimization capabilities of decision transformers and the generalization strengths of generative artificial intelligence (GAI), we propose a novel GAI-aided approach, called the prompt-guided decision transformer integrated with zero-forcing optimization (PG-ZFO). Simulations are conducted to evaluate the proposed PG-ZFO, demonstrating its effectiveness and superiority over counterparts.

Datasets in engineering domains are often small, sparsely labeled, and contain numerical as well as categorical conditions. Additionally. computational resources are typically limited in practical applications which hinders the adoption of generative models for engineering tasks. We introduce a novel masked-conditioning approach, that enables generative models to work with sparse, mixed-type data. We mask conditions during training to simulate sparse conditions at inference time. For this purpose, we explore the use of various sparsity schedules that show different strengths and weaknesses. In addition, we introduce a flexible embedding that deals with categorical as well as numerical conditions. We integrate our method into an efficient variational autoencoder as well as a latent diffusion model and demonstrate the applicability of our approach on two engineering-related datasets of 2D point clouds and images. Finally, we show that small models trained on limited data can be coupled with large pretrained foundation models to improve generation quality while retaining the controllability induced by our conditioning scheme.

Traditional methods for 3D object compression operate only on structural information within the object vertices, polygons, and textures. These methods are effective at compression rates up to 10x for standard object sizes but quickly deteriorate at higher compression rates with texture artifacts, low-polygon counts, and mesh gaps. In contrast, semantic compression ignores structural information and operates directly on the core concepts to push to extreme levels of compression. In addition, it uses natural language as its storage format, which makes it natively human-readable and a natural fit for emerging applications built around large-scale, collaborative projects within augmented and virtual reality. It deprioritizes structural information like location, size, and orientation and predicts the missing information with state-of-the-art deep generative models. In this work, we construct a pipeline for 3D semantic compression from public generative models and explore the quality-compression frontier for 3D object compression. We apply this pipeline to achieve rates as high as 105x for 3D objects taken from the Objaverse dataset and show that semantic compression can outperform traditional methods in the important quality-preserving region around 100x compression.

As of 2025, Generative Artificial Intelligence (GenAI) has become a central tool for productivity across industries. Beyond text generation, GenAI now plays a critical role in coding, data analysis, and research workflows. As large language models (LLMs) continue to evolve, it is essential to assess the reliability and accuracy of their outputs, especially in specialized, high-stakes domains like finance. Most modern LLMs transform text into numerical vectors, which are used in operations such as cosine similarity searches to generate responses. However, this abstraction process can lead to misinterpretation of emotional tone, particularly in nuanced financial contexts. While LLMs generally excel at identifying sentiment in everyday language, these models often struggle with the nuanced, strategically ambiguous language found in earnings call transcripts. Financial disclosures frequently embed sentiment in hedged statements, forward-looking language, and industry-specific jargon, making it difficult even for human analysts to interpret consistently, let alone AI models. This paper presents findings from the Santa Clara Microsoft Practicum Project, led by Professor Charlie Goldenberg, which benchmarks the performance of Microsoft's Copilot, OpenAI's ChatGPT, Google's Gemini, and traditional machine learning models for sentiment analysis of financial text. Using Microsoft earnings call transcripts, the analysis assesses how well LLM-derived sentiment correlates with market sentiment and stock movements and evaluates the accuracy of model outputs. Prompt engineering techniques are also examined to improve sentiment analysis results. Visualizations of sentiment consistency are developed to evaluate alignment between tone and stock performance, with sentiment trends analyzed across Microsoft's lines of business to determine which segments exert the greatest influence.

AI-Generated (AIG) content has become increasingly widespread by recent advances in generative models and the easy-to-use tools that have significantly lowered the technical barriers for producing highly realistic audio, images, and videos through simple natural language prompts. In response, platforms are adopting provable provenance with platforms recommending AIG to be self-disclosed and signaled to users. However, these indicators may be often missed, especially when they rely solely on visual cues and make them ineffective to users with different sensory abilities. To address the gap, we conducted semi-structured interviews (N=28) with 15 sighted and 13 BLV participants to examine their interaction with AIG content through self-disclosed AI indicators. Our findings reveal diverse mental models and practices, highlighting different strengths and weaknesses of content-based (e.g., title, description) and menu-aided (e.g., AI labels) indicators. While sighted participants leveraged visual and audio cues, BLV participants primarily relied on audio and existing assistive tools, limiting their ability to identify AIG. Across both groups, they frequently overlooked menu-aided indicators deployed by platforms and rather interacted with content-based indicators such as title and comments. We uncovered usability challenges stemming from inconsistent indicator placement, unclear metadata, and cognitive overload. These issues were especially critical for BLV individuals due to the insufficient accessibility of interface elements. We provide practical recommendations and design implications for future AIG indicators across several dimensions.

This paper presents BR-TaxQA-R, a novel dataset designed to support question answering with references in the context of Brazilian personal income tax law. The dataset contains 715 questions from the 2024 official Q&A document published by Brazil's Internal Revenue Service, enriched with statutory norms and administrative rulings from the Conselho Administrativo de Recursos Fiscais (CARF). We implement a Retrieval-Augmented Generation (RAG) pipeline using OpenAI embeddings for searching and GPT-4o-mini for answer generation. We compare different text segmentation strategies and benchmark our system against commercial tools such as ChatGPT and Perplexity.ai using RAGAS-based metrics. Results show that our custom RAG pipeline outperforms commercial systems in Response Relevancy, indicating stronger alignment with user queries, while commercial models achieve higher scores in Factual Correctness and fluency . These findings highlight a trade-off between legally grounded generation and linguistic fluency. Crucially, we argue that human expert evaluation remains essential to ensure the legal validity of AI-generated answers in high-stakes domains such as taxation.

Generative AI (GenAI) is rapidly advancing the field of Autonomous Driving (AD), extending beyond traditional applications in text, image, and video generation. We explore how generative models can enhance automotive tasks, such as static map creation, dynamic scenario generation, trajectory forecasting, and vehicle motion planning. By examining multiple generative approaches ranging from Variational Autoencoder (VAEs) over Generative Adversarial Networks (GANs) and Invertible Neural Networks (INNs) to Generative Transformers (GTs) and Diffusion Models (DMs), we highlight and compare their capabilities and limitations for AD-specific applications. Additionally, we discuss hybrid methods integrating conventional techniques with generative approaches, and emphasize their improved adaptability and robustness. We also identify relevant datasets and outline open research questions to guide future developments in GenAI. Finally, we discuss three core challenges: safety, interpretability, and realtime capabilities, and present recommendations for image generation, dynamic scenario generation, and planning.