Financial crimes fast proliferation and sophistication require novel approaches that provide robust and effective solutions. This paper explores the potential of quantum algorithms in combating financial crimes. It highlights the advantages of quantum computing by examining traditional and Machine Learning (ML) techniques alongside quantum approaches. The study showcases advanced methodologies such as Quantum Machine Learning (QML) and Quantum Artificial Intelligence (QAI) as powerful solutions for detecting and preventing financial crimes, including money laundering, financial crime detection, cryptocurrency attacks, and market manipulation. These quantum approaches leverage the inherent computational capabilities of quantum computers to overcome limitations faced by classical methods. Furthermore, the paper illustrates how quantum computing can support enhanced financial risk management analysis. Financial institutions can improve their ability to identify and mitigate risks, leading to more robust risk management strategies by exploiting the quantum advantage. This research underscores the transformative impact of quantum algorithms on financial risk management. By embracing quantum technologies, organisations can enhance their capabilities to combat evolving threats and ensure the integrity and stability of financial systems.

With the rapidly spreading usage of Internet of Things (IoT) devices, a network intrusion detection system (NIDS) plays an important role in detecting and protecting various types of attacks in the IoT network. To evaluate the robustness of the NIDS in the IoT network, the existing work proposed a realistic botnet dataset in the IoT network (Bot-IoT dataset) and applied it to machine learning-based anomaly detection. This dataset contains imbalanced normal and attack packets because the number of normal packets is much smaller than that of attack ones. The nature of imbalanced data may make it difficult to identify the minority class correctly. In this thesis, to address the class imbalance problem in the Bot-IoT dataset, we propose a binary classification method with synthetic minority over-sampling techniques (SMOTE). The proposed classifier aims to detect attack packets and overcome the class imbalance problem using the SMOTE algorithm. Through numerical results, we demonstrate the proposed classifier's fundamental characteristics and the impact of imbalanced data on its performance.

This study investigates how machine learning (ML) models can predict hospital readmissions for diabetic patients fairly and accurately across different demographics (age, gender, race). We compared models like Deep Learning, Generalized Linear Models, Gradient Boosting Machines (GBM), and Naive Bayes. GBM stood out with an F1-score of 84.3% and accuracy of 82.2%, accurately predicting readmissions across demographics. A fairness analysis was conducted across all the models. GBM minimized disparities in predictions, achieving balanced results across genders and races. It showed low False Discovery Rates (FDR) (6-7%) and False Positive Rates (FPR) (5%) for both genders. Additionally, FDRs remained low for racial groups, such as African Americans (8%) and Asians (7%). Similarly, FPRs were consistent across age groups (4%) for both patients under 40 and those above 40, indicating its precision and ability to reduce bias. These findings emphasize the importance of choosing ML models carefully to ensure both accuracy and fairness for all patients. By showcasing effectiveness of various models with fairness metrics, this study promotes personalized medicine and the need for fair ML algorithms in healthcare. This can ultimately reduce disparities and improve outcomes for diabetic patients of all backgrounds.

This study focuses on addressing the instability issues prevalent in contrastive learning, specifically examining the InfoNCE loss function and its derivatives. We reveal a critical observation that these loss functions exhibit a restrictive behavior, leading to a convergence phenomenon where embeddings tend to merge into a singular point. This "over-fusion" effect detrimentally affects classification accuracy in subsequent supervised-learning tasks. Through theoretical analysis, we demonstrate that embeddings, when equalized or confined to a rank-1 linear subspace, represent a local minimum for InfoNCE. In response to this challenge, our research introduces an innovative strategy that leverages the same or fewer labeled data than typically used in the fine-tuning phase. The loss we proposed, Orthonormal Anchor Regression Loss, is designed to disentangle embedding clusters, significantly enhancing the distinctiveness of each embedding while simultaneously ensuring their aggregation into dense, well-defined clusters. Our method demonstrates remarkable improvements with just a fraction of the conventional label requirements, as evidenced by our results on CIFAR10 and CIFAR100 datasets.

Meta-learning involves training models on a variety of training tasks in a way that enables them to generalize well on new, unseen test tasks. In this work, we consider meta-learning within the framework of high-dimensional multivariate random-effects linear models and study generalized ridge-regression based predictions. The statistical intuition of using generalized ridge regression in this setting is that the covariance structure of the random regression coefficients could be leveraged to make better predictions on new tasks. Accordingly, we first characterize the precise asymptotic behavior of the predictive risk for a new test task when the data dimension grows proportionally to the number of samples per task. We next show that this predictive risk is optimal when the weight matrix in generalized ridge regression is chosen to be the inverse of the covariance matrix of random coefficients. Finally, we propose and analyze an estimator of the inverse covariance matrix of random regression coefficients based on data from the training tasks. As opposed to intractable MLE-type estimators, the proposed estimators could be computed efficiently as they could be obtained by solving (global) geodesically-convex optimization problems. Our analysis and methodology use tools from random matrix theory and Riemannian optimization. Simulation results demonstrate the improved generalization performance of the proposed method on new unseen test tasks within the considered framework.

Likelihood-based deep generative models (DGMs) commonly exhibit a puzzling behaviour: when trained on a relatively complex dataset, they assign higher likelihood values to out-of-distribution (OOD) data from simpler sources. Adding to the mystery, OOD samples are never generated by these DGMs despite having higher likelihoods. This two-pronged paradox has yet to be conclusively explained, making likelihood-based OOD detection unreliable. Our primary observation is that high-likelihood regions will not be generated if they contain minimal probability mass. We demonstrate how this seeming contradiction of large densities yet low probability mass can occur around data confined to low-dimensional manifolds. We also show that this scenario can be identified through local intrinsic dimension (LID) estimation, and propose a method for OOD detection which pairs the likelihoods and LID estimates obtained from a pre-trained DGM. Our method can be applied to normalizing flows and score-based diffusion models, and obtains results which match or surpass state-of-the-art OOD detection benchmarks using the same DGM backbones. Our code is available at https://github.com/layer6ai-labs/dgm_ood_detection.

Random Forest (RF) is well-known as an efficient ensemble learning method in terms of predictive performance. It is also considered a Black Box because of its hundreds of deep decision trees. This lack of interpretability can be a real drawback for acceptance of RF models in several real-world applications, especially those affecting one's lives, such as in healthcare, security, and law. In this work, we present Forest-ORE, a method that makes RF interpretable via an optimized rule ensemble (ORE) for local and global interpretation. Unlike other rule-based approaches aiming at interpreting the RF model, this method simultaneously considers several parameters that influence the choice of an interpretable rule ensemble. Existing methods often prioritize predictive performance over interpretability coverage and do not provide information about existing overlaps or interactions between rules. Forest-ORE uses a mixed-integer optimization program to build an ORE that considers the trade-off between predictive performance, interpretability coverage, and model size (size of the rule ensemble, rule lengths, and rule overlaps). In addition to providing an ORE competitive in predictive performance with RF, this method enriches the ORE through other rules that afford complementary information. It also enables monitoring of the rule selection process and delivers various metrics that can be used to generate a graphical representation of the final model. This framework is illustrated through an example, and its robustness is assessed through 36 benchmark datasets. A comparative analysis of well-known methods shows that Forest-ORE provides an excellent trade-off between predictive performance, interpretability coverage, and model size.

We propose a text-guided variational image generation method to address the challenge of getting clean data for anomaly detection in industrial manufacturing. Our method utilizes text information about the target object, learned from extensive text library documents, to generate non-defective data images resembling the input image. The proposed framework ensures that the generated non-defective images align with anticipated distributions derived from textual and image-based knowledge, ensuring stability and generality. Experimental results demonstrate the effectiveness of our approach, surpassing previous methods even with limited non-defective data. Our approach is validated through generalization tests across four baseline models and three distinct datasets. We present an additional analysis to enhance the effectiveness of anomaly detection models by utilizing the generated images.

Large Language Models (LLMs) have shown promising in-context learning abilities. However, conventional In-Context Learning (ICL) approaches are often impeded by length limitations of transformer architecture, which pose challenges when attempting to effectively integrate supervision from a substantial number of demonstration examples. In this paper, we introduce a novel framework, called Naive Bayes-based Context Extension (NBCE), to enable existing LLMs to perform ICL with an increased number of demonstrations by significantly expanding their context size. Importantly, this expansion does not require fine-tuning or dependence on particular model architectures, all the while preserving linear efficiency. NBCE initially splits the context into equal-sized windows fitting the target LLM's maximum length. Then, it introduces a voting mechanism to select the most relevant window, regarded as the posterior context. Finally, it employs Bayes' theorem to generate the test task. Our experimental results demonstrate that NBCE substantially enhances performance, particularly as the number of demonstration examples increases, consistently outperforming alternative methods. The NBCE code will be made publicly accessible. The code NBCE is available at: https://github.com/amurtadha/NBCE-master

Advances in artificial intelligence (AI) show great potential in revealing underlying information from phonon microscopy (high-frequency ultrasound) data to identify cancerous cells. However, this technology suffers from the 'batch effect' that comes from unavoidable technical variations between each experiment, creating confounding variables that the AI model may inadvertently learn. We therefore present a multi-task conditional neural network framework to simultaneously achieve inter-batch calibration, by removing confounding variables, and accurate cell classification of time-resolved phonon-derived signals. We validate our approach by training and validating on different experimental batches, achieving a balanced precision of 89.22% and an average cross-validated precision of 89.07% for classifying background, healthy and cancerous regions. Classification can be performed in 0.5 seconds with only simple prior batch information required for multiple batch corrections. Further, we extend our model to reconstruct denoised signals, enabling physical interpretation of salient features indicating disease state including sound velocity, sound attenuation and cell-adhesion to substrate.