One of the most pressing concerns that keeps retail professionals up at night is how to combat fraud. Retailers could lose upwards of $71 billion from fraudulent online transactions over the next few years, yet some executives feel that publicly acknowledging a fraud issue would harm their brand. One of the most significant fraud concerns merchants face today are false positives -- i.e., transactions attempted by legitimate customers that are tagged as suspicious by fraud prevention systems, ultimately leaving money on the table. Because their effect is so difficult to accurately measure, false positives are often ignored, and their cost greatly underestimated. However, a majority of retailers say that fraudulent transactions that aren't detected cost more than a legitimate transaction that's inaccurately declined, despite some evidence that the opposite is true. What's more, relatively few companies track false positives.

In the first blog, we discussed some important metrics used in regression, their pros and cons, and use cases. This part will focus on commonly used metrics in classification, why should we prefer some over others with context. Let's first understand the basic terminology used in classification problems before going through the pros and cons of each method. You can skip this section if you are already familiar with the terminology. The probabilistic interpretation of ROC-AUC score is that if you randomly choose a positive case and a negative case, the probability that the positive case outranks the negative case according to the classifier is given by the AUC.

We consider the problem of improving fairness when one lacks access to a dataset labeled with protected groups, making it difficult to take advantage of strategies that can improve fairness but require protected group labels, either at training or runtime. To address this, we investigate improving fairness metrics for proxy groups, and test whether doing so results in improved fairness for the true sensitive groups. Results on benchmark and real-world datasets demonstrate that such a proxy fairness strategy can work well in practice. However, we caution that the effectiveness likely depends on the choice of fairness metric, as well as how aligned the proxy groups are with the true protected groups in terms of the constrained model parameters.

Since the machine learning techniques are improving rapidly, it has been shown that the image recognition techniques in deep neural networks can be used to detect jet substructure. And it turns out that deep neural networks can match or outperform traditional approach of expert features. However, there are disadvantages such as sparseness of jet images. Based on the natural tree-like structure of jet sequential clustering, the recursive neural networks (RecNNs), which embed jet clustering history recursively as in natural language processing, have a better behavior when confronted with these problems. We thus try to explore the performance of RecNNs in quark/gluon discrimination. The results show that RecNNs work better than the baseline boosted decision tree (BDT) by a few percent in gluon rejection rate. However, extra implementation of particle flow identification only increases the performance slightly. We also experimented on some relevant aspects which might influence the performance of the networks. It shows that even taking only particle flow identification as input feature without any extra information on momentum or angular position is already giving a fairly good result, which indicates that the most of the information for quark/gluon discrimination is already included in the tree-structure itself. As a bonus, a rough up/down quark jets discrimination is also explored.

Target encoding plays a central role when learning Convolutional Neural Networks. In this realm, One-hot encoding is the most prevalent strategy due to its simplicity. However, this so widespread encoding schema assumes a flat label space, thus ignoring rich relationships existing among labels that can be exploited during training. In large-scale datasets, data does not span the full label space, but instead lies in a low-dimensional output manifold. Following this observation, we embed the targets into a low-dimensional space, drastically improving convergence speed while preserving accuracy. Our contribution is two fold: (i) We show that random projections of the label space are a valid tool to find such lower dimensional embeddings, boosting dramatically convergence rates at zero computational cost; and (ii) we propose a normalized eigenrepresentation of the class manifold that encodes the targets with minimal information loss, improving the accuracy of random projections encoding while enjoying the same convergence rates. Experiments on CIFAR-100, CUB200-2011, Imagenet, and MIT Places demonstrate that the proposed approach drastically improves convergence speed while reaching very competitive accuracy rates.

One important assumption underlying common classification models is the stationarity of the data. However, in real-world streaming applications, the data concept indicated by the joint distribution of feature and label is not stationary but drifting over time. Concept drift detection aims to detect such drifts and adapt the model so as to mitigate any deterioration in the model's predictive performance. Unfortunately, most existing concept drift detection methods rely on a strong and over-optimistic condition that the true labels are available immediately for all already classified instances. In this paper, a novel Hierarchical Hypothesis Testing framework with Request-and-Reverify strategy is developed to detect concept drifts by requesting labels only when necessary. Two methods, namely Hierarchical Hypothesis Testing with Classification Uncertainty (HHT-CU) and Hierarchical Hypothesis Testing with Attribute-wise "Goodness-of-fit" (HHT-AG), are proposed respectively under the novel framework. In experiments with benchmark datasets, our methods demonstrate overwhelming advantages over state-of-the-art unsupervised drift detectors. More importantly, our methods even outperform DDM (the widely used supervised drift detector) when we use significantly fewer labels.

The world of automated surveillance is booming, with new machine learning techniques giving CCTV cameras the ability to spot troubling behavior without human supervision. And sooner or later, this tech will be coming to a store near you -- as illustrated by a new AI security cam built by Japanese telecom giant NTT East and startup Earth Eyes Corp. The security camera is called the "AI Guardman" and is designed to help shop owners in Japan spot potential shoplifters. It uses open source technology developed by Carnegie Mellon University to scan live video streams and estimate the poses of any bodies it can see. The system then tries to match this pose data to predefined'suspicious' behavior. If it sees something noteworthy, it alerts shopkeepers via a connected app.

Online symptom checkers have significant potential to improve patient care, however their reliability and accuracy remain variable. We hypothesised that an artificial intelligence (AI) powered triage and diagnostic system would compare favourably with human doctors with respect to triage and diagnostic accuracy. We performed a prospective validation study of the accuracy and safety of an AI powered triage and diagnostic system. Identical cases were evaluated by both an AI system and human doctors. Differential diagnoses and triage outcomes were evaluated by an independent judge, who was blinded from knowing the source (AI system or human doctor) of the outcomes. Independently of these cases, vignettes from publicly available resources were also assessed to provide a benchmark to previous studies and the diagnostic component of the MRCGP exam. Overall we found that the Babylon AI powered Triage and Diagnostic System was able to identify the condition modelled by a clinical vignette with accuracy comparable to human doctors (in terms of precision and recall). In addition, we found that the triage advice recommended by the AI System was, on average, safer than that of human doctors, when compared to the ranges of acceptable triage provided by independent expert judges, with only a minimal reduction in appropriateness.

Magnetic resonance (MR) imaging offers a wide variety of imaging techniques. A large amount of data is created per examination which needs to be checked for sufficient quality in order to derive a meaningful diagnosis. This is a manual process and therefore time- and cost-intensive. Any imaging artifacts originating from scanner hardware, signal processing or induced by the patient may reduce the image quality and complicate the diagnosis or any image post-processing. Therefore, the assessment or the ensurance of sufficient image quality in an automated manner is of high interest. Usually no reference image is available or difficult to define. Therefore, classical reference-based approaches are not applicable. Model observers mimicking the human observers (HO) can assist in this task. Thus, we propose a new machine-learning-based reference-free MR image quality assessment framework which is trained on HO-derived labels to assess MR image quality immediately after each acquisition. We include the concept of active learning and present an efficient blinded reading platform to reduce the effort in the HO labeling procedure. Derived image features and the applied classifiers (support-vector-machine, deep neural network) are investigated for a cohort of 250 patients. The MR image quality assessment framework can achieve a high test accuracy of 93.7$\%$ for estimating quality classes on a 5-point Likert-scale. The proposed MR image quality assessment framework is able to provide an accurate and efficient quality estimation which can be used as a prospective quality assurance including automatic acquisition adaptation or guided MR scanner operation, and/or as a retrospective quality assessment including support of diagnostic decisions or quality control in cohort studies.

Given independent samples generated from the joint distribution $p(\mathbf{x},\mathbf{y},\mathbf{z})$, we study the problem of Conditional Independence (CI-Testing), i.e., whether the joint equals the CI distribution $p^{CI}(\mathbf{x},\mathbf{y},\mathbf{z})= p(\mathbf{z}) p(\mathbf{y}|\mathbf{z})p(\mathbf{x}|\mathbf{z})$ or not. We cast this problem under the purview of the proposed, provable meta-algorithm, "Mimic and Classify", which is realized in two-steps: (a) Mimic the CI distribution close enough to recover the support, and (b) Classify to distinguish the joint and the CI distribution. Thus, as long as we have a good generative model and a good classifier, we potentially have a sound CI Tester. With this modular paradigm, CI Testing becomes amiable to be handled by state-of-the-art, both generative and classification methods from the modern advances in Deep Learning, which in general can handle issues related to curse of dimensionality and operation in small sample regime. We show intensive numerical experiments on synthetic and real datasets where new mimic methods such conditional GANs, Regression with Neural Nets, outperform the current best CI Testing performance in the literature. Our theoretical results provide analysis on the estimation of null distribution as well as allow for general measures, i.e., when either some of the random variables are discrete and some are continuous or when one or more of them are discrete-continuous mixtures.