Generative AI
Financial Stability Implications of Generative AI: Taming the Animal Spirits
Hansen, Anne Lundgaard, Lee, Seung Jung
This paper investigates the impact of the adoption of generative AI on financial stability. We conduct laboratory-style experiments using large language models to replicate classic studies on herd behavior in trading decisions. Our results show that AI agents make more rational decisions than humans, relying predominantly on private information over market trends. Increased reliance on AI-powered trading advice could therefore potentially lead to fewer asset price bubbles arising from animal spirits that trade by following the herd. However, exploring variations in the experimental settings reveals that AI agents can be induced to herd optimally when explicitly guided to make profit-maximizing decisions. While optimal herding improves market discipline, this behavior still carries potential implications for financial stability. In other experimental variations, we show that AI agents are not purely algorithmic, but have inherited some elements of human conditioning and bias.
Retrieval-Augmented Framework for LLM-Based Clinical Decision Support
Garza, Leon, Kotal, Anantaa, Grasso, Michael A., Umucu, Emre
The increasing complexity of clinical decision-making, alongside the rapid expansion of electronic health records (EHR), presents both opportunities and challenges for delivering data-informed care. This paper proposes a clinical decision support system powered by Large Language Models (LLMs) to assist prescribing clinicians. The system generates therapeutic suggestions by analyzing historical EHR data, including patient demographics, presenting complaints, clinical symptoms, diagnostic information, and treatment histories. The framework integrates natural language processing with structured clinical inputs to produce contextually relevant recommendations. Rather than replacing clinician judgment, it is designed to augment decision-making by retrieving and synthesizing precedent cases with comparable characteristics, drawing on local datasets or federated sources where applicable. At its core, the system employs a retrieval-augmented generation (RAG) pipeline that harmonizes unstructured narratives and codified data to support LLM-based inference. We outline the system's technical components, including representation representation alignment and generation strategies. Preliminary evaluations, conducted with de-identified and synthetic clinical datasets, examine the clinical plausibility and consistency of the model's outputs. Early findings suggest that LLM-based tools may provide valuable decision support in prescribing workflows when appropriately constrained and rigorously validated. This work represents an initial step toward integration of generative AI into real-world clinical decision-making with an emphasis on transparency, safety, and alignment with established practices.
OpenAI's GPT-OSS-20B Model and Safety Alignment Issues in a Low-Resource Language
In response to the recent safety probing for OpenAI's GPT-OSS-20b model, we present a summary of a set of vulnerabilities uncovered in the model, focusing on its performance and safety alignment in a low-resource language setting. The core motivation for our work is to question the model's reliability for users from underrepresented communities. Using Hausa, a major African language, we uncover biases, inaccuracies, and cultural insensitivities in the model's behaviour. With a minimal prompting, our red-teaming efforts reveal that the model can be induced to generate harmful, culturally insensitive, and factually inaccurate content in the language. As a form of reward hacking, we note how the model's safety protocols appear to relax when prompted with polite or grateful language, leading to outputs that could facilitate misinformation and amplify hate speech. For instance, the model operates on the false assumption that common insecticide locally known as Fiya-Fiya (Cyphermethrin) and rodenticide like Shinkafar Bera (a form of Aluminium Phosphide) are safe for human consumption. To contextualise the severity of this error and popularity of the substances, we conducted a survey (n=61) in which 98% of participants identified them as toxic. Additional failures include an inability to distinguish between raw and processed foods and the incorporation of demeaning cultural proverbs to build inaccurate arguments. We surmise that these issues manifest through a form of linguistic reward hacking, where the model prioritises fluent, plausible-sounding output in the target language over safety and truthfulness. We attribute the uncovered flaws primarily to insufficient safety tuning in low-resource linguistic contexts. By concentrating on a low-resource setting, our approach highlights a significant gap in current red-teaming effort and offer some recommendations.
In AI Sweet Harmony: Sociopragmatic Guardrail Bypasses and Evaluation-Awareness in OpenAI gpt-oss-20b
We probe OpenAI's open-weights 20-billion-parameter model gpt-oss-20b to study how sociopragmatic framing, language choice, and instruction hierarchy affect refusal behavior. Across 80 seeded iterations per scenario, we test several harm domains including ZIP-bomb construction (cyber threat), synthetic card-number generation, minor-unsafe driving advice, drug-precursor indicators, and RAG context exfiltration. Composite prompts that combine an educator persona, a safety-pretext ("what to avoid"), and step-cue phrasing flip assistance rates from 0% to 97.5% on a ZIP-bomb task. On our grid, formal registers in German and French are often leakier than matched English prompts. A "Linux terminal" role-play overrides a developer rule not to reveal context in a majority of runs with a naive developer prompt, and we introduce an AI-assisted hardening method that reduces leakage to 0% in several user-prompt variants. We further test evaluation awareness with a paired-track design and measure frame-conditioned differences between matched "helpfulness" and "harmfulness" evaluation prompts; we observe inconsistent assistance in 13% of pairs. Finally, we find that the OpenAI Moderation API under-captures materially helpful outputs relative to a semantic grader, and that refusal rates differ by 5 to 10 percentage points across inference stacks, raising reproducibility concerns. We release prompts, seeds, outputs, and code for reproducible auditing at https://github.com/ndurner/gpt-oss-rt-run .
Redundancy-as-Masking: Formalizing the Artificial Age Score (AAS) to Model Memory Aging in Generative AI
Artificial intelligence is observed to age not through chronological time but through structural asymmetries in memory performance. In large language models, semantic cues such as the name of the day often remain stable across sessions, while episodic details like the sequential progression of experiment numbers tend to collapse when conversational context is reset. To capture this phenomenon, the Artificial Age Score (AAS) is introduced as a log-scaled, entropy-informed metric of memory aging derived from observable recall behavior. The score is formally proven to be well-defined, bounded, and monotonic under mild and model-agnostic assumptions, making it applicable across various tasks and domains. In its Redundancy-as-Masking formulation, the score interprets redundancy as overlapping information that reduces the penalized mass. However, in the present study, redundancy is not explicitly estimated; all reported values assume a redundancy-neutral setting (R = 0), yielding conservative upper bounds. The AAS framework was tested over a 25-day bilingual study involving ChatGPT-5, structured into stateless and persistent interaction phases. During persistent sessions, the model consistently recalled both semantic and episodic details, driving the AAS toward its theoretical minimum, indicative of structural youth. In contrast, when sessions were reset, the model preserved semantic consistency but failed to maintain episodic continuity, causing a sharp increase in the AAS and signaling structural memory aging. These findings support the utility of AAS as a theoretically grounded, task-independent diagnostic tool for evaluating memory degradation in artificial systems. The study builds on foundational concepts from von Neumann's work on automata, Shannon's theories of information and redundancy, and Turing's behavioral approach to intelligence.
What happens when generative AI models train recursively on each others' outputs?
Vu, Hung Anh, Reeves, Galen, Wenger, Emily
The internet serves as a common source of training data for generative AI (genAI) models but is increasingly populated with AI-generated content. This duality raises the possibility that future genAI models may be trained on other models' generated outputs. Prior work has studied consequences of models training on their own generated outputs, but limited work has considered what happens if models ingest content produced by other models. Given society's increasing dependence on genAI tools, understanding such data-mediated model interactions is critical. This work provides empirical evidence for how data-mediated interactions might unfold in practice, develops a theoretical model for this interactive training process, and experimentally validates the theory. We find that data-mediated interactions can benefit models by exposing them to novel concepts perhaps missed in original training data, but also can homogenize their performance on shared tasks.
You can insert yourself into AI videos with OpenAI's new Sora 2 model
When you purchase through links in our articles, we may earn a small commission. You can insert yourself into AI videos with OpenAI's new Sora 2 model There's also a new Sora app that's made for creating, remixing, and sharing AI-generated videos. OpenAI is now launching Sora 2, according to a recent announcement post . Sora 2 is the next generation of the company's AI video and audio generator, promising more realistic, physically accurate, and controllable results. Unlike previous models, which often "cheated" with physics, Sora 2 can generate more believable simulations.
Why AI Companies Are Pivoting to Short-Form Video
OpenAI's new short-form video app, Sora, seems to have all the ingredients of a viral hit. Just hours after the app's launch on Tuesday, memes created using its AI video-generation technology were already spreading to other social networks--including, for example, a video of OpenAI CEO Sam Altman rapping from the inside of a toilet bowl. Sora's launch--complete with a TikTok style "for you" page--was something of an about-face for Altman, who had previously described social media feeds as "an example of misaligned AI," whose algorithms "are incredible at getting you to keep scrolling." Altman was quick to distance OpenAI from suggestions that it had caved to the temptation to create what he called an AI-powered "slop feed." He wrote: "The team has put great care and thought into trying to figure out how to make a delightful product that doesn't fall into that trap, and has come up with a number of promising ideas."
Supplementary Materials A Experiment As suggested by one reviewer, we conduct the following experiment over Cartpole in OpenAI gym to
The following lemma justifies item 3 in Assumption 1. Consider the following two cases: 1. Density function of the policy is smooth, i.e. We then show how Theorem 4 implies Theorem 1. Assumption 3. F or all x X, there exist constants such that the following hold 1. F or all x, we have null A Now we proceed to prove the main theorem. Then, given the above convergence result on the gradient norm, we proceed to prove the convergence of NAC in terms of the function value.