Money laundering and financial fraud remain major threats to global financial stability, costing trillions annually and challenging regulatory oversight. This paper reviews how artificial intelligence (AI) applications can modernize Anti-Money Laundering (AML) workflows by improving detection accuracy, lowering false-positive rates, and reducing the operational burden of manual investigations, thereby supporting more sustainable development. It further highlights future research directions including federated learning for privacy-preserving collaboration, fairness-aware and interpretable AI, reinforcement learning for adaptive defenses, and human-in-the-loop visualization systems to ensure that next-generation AML architectures remain transparent, accountable, and robust. In the final part, the paper proposes an AI-driven KYC application that integrates graph-based retrieval-augmented generation (RAG Graph) with generative models to enhance efficiency, transparency, and decision support in KYC processes related to money-laundering detection. Experimental results show that the RAG-Graph architecture delivers high faithfulness and strong answer relevancy across diverse evaluation settings, thereby enhancing the efficiency and transparency of KYC CDD/EDD workflows and contributing to more sustainable, resource-optimized compliance practices.

Predictions of fatalities from violent conflict on the PRIO-GRID-month (pgm) level are characterized by high levels of uncertainty, limiting their usefulness in practical applications. We discuss the two main sources of uncertainty for this prediction task, the nature of violent conflict and data limitations, embedding this in the wider literature on uncertainty quantification in machine learning. We develop a strategy to quantify uncertainty in conflict forecasting, shifting from traditional point predictions to full predictive distributions. Our approach compares and combines multiple tree-based classifiers and distributional regressors in a custom auto-ML setup, estimating distributions for each pgm individually. We also test the integration of regional models in spatial ensembles as a potential avenue to reduce uncertainty. The models are able to consistently outperform a suite of benchmarks derived from conflict history in predictions up to one year in advance, with performance driven by regions where conflict was observed. With our evaluation, we emphasize the need to understand how a metric behaves for a given prediction problem, in our case characterized by extremely high zero-inflatedness. While not resulting in better predictions, the integration of smaller models does not decrease performance for this prediction task, opening avenues to integrate data sources with less spatial coverage in the future.

High-resolution highway traffic state information is essential for Intelligent Transportation Systems, but typical traffic data acquired from loop detectors and probe vehicles are often too sparse and noisy to capture the detailed dynamics of traffic flow. We propose PMA-Diffusion, a physics-guided mask-aware diffusion framework that reconstructs unobserved highway speed fields from sparse, incomplete observations. Our approach trains a diffusion prior directly on sparsely observed speed fields using two mask-aware training strategies: Single-Mask and Double-Mask. At the inference phase, the physics-guided posterior sampler alternates reverse-diffusion updates, observation projection, and physics-guided projection based on adaptive anisotropic smoothing to reconstruct the missing speed fields. The proposed framework is tested on the I-24 MOTION dataset with varying visibility ratios. Even under severe sparsity, with only 5% visibility, PMA-Diffusion outperforms other baselines across three reconstruction error metrics. Furthermore, PMA-diffusion trained with sparse observation nearly matches the performance of the baseline model trained on fully observed speed fields. The results indicate that combining mask-aware diffusion priors with a physics-guided posterior sampler provides a reliable and flexible solution for traffic state estimation under realistic sensing sparsity.

Federated Learning (FL) has drawn the attention of the Intelligent Transportation Systems (ITS) community. FL can train various models for ITS tasks, notably camera-based Road Condition Classification (RCC), in a privacy-preserving collaborative way. However, opening up to collaboration also opens FL-based RCC systems to adversaries, i.e., misbehaving participants that can launch Targeted Label-Flipping Attacks (TLFAs) and threaten transportation safety. Adversaries mounting TLFAs poison training data to misguide model predictions, from an actual source class (e.g., wet road) to a wrongly perceived target class (e.g., dry road). Existing countermeasures against poisoning attacks cannot maintain model performance under TLFAs close to the performance level in attack-free scenarios, because they lack specific model misbehavior detection for TLFAs and neglect client exclusion after the detection. To close this research gap, we propose DEFEND, which includes a poisoned model detection strategy that leverages neuron-wise magnitude analysis for attack goal identification and Gaussian Mixture Model (GMM)-based clustering. DEFEND discards poisoned model contributions in each round and adapts accordingly client ratings, eventually excluding malicious clients. Extensive evaluation involving various FL-RCC models and tasks shows that DEFEND can thwart TLFAs and outperform seven baseline countermeasures, with at least 15.78% improvement, with DEFEND remarkably achieving under attack the same performance as in attack-free scenarios.

Despite a large corpus of recent work on scaling up Gaussian processes, a stubborn trade-off between computational speed, prediction and uncertainty quantification accuracy, and customizability persists. This is because the vast majority of existing methodologies exploit various levels of approximations that lower accuracy and limit the flexibility of kernel and noise-model designs -- an unacceptable drawback at a time when expressive non-stationary kernels are on the rise in many fields. Here, we propose a methodology we term \emph{gp2Scale} that scales exact Gaussian processes to more than 10 million data points without relying on inducing points, kernel interpolation, or neighborhood-based approximations, and instead leveraging the existing capabilities of a GP: its kernel design. Highly flexible, compactly supported, and non-stationary kernels lead to the identification of naturally occurring sparse structure in the covariance matrix, which is then exploited for the calculations of the linear system solution and the log-determinant for training. We demonstrate our method's functionality on several real-world datasets and compare it with state-of-the-art approximation algorithms. Although we show superior approximation performance in many cases, the method's real power lies in its agnosticism toward arbitrary GP customizations -- core kernel design, noise, and mean functions -- and the type of input space, making it optimally suited for modern Gaussian process applications.

Early forecasting of individual cognitive decline in Alzheimer's disease (AD) is central to disease evaluation and management. Despite advances, it is as of yet challenging for existing methodological frameworks to integrate multimodal data for longitudinal personalized forecasting while maintaining interpretability. To address this gap, we present the Neural Koopman Machine (NKM), a new machine learning architecture inspired by dynamical systems and attention mechanisms, designed to forecast multiple cognitive scores simultaneously using multimodal genetic, neuroimaging, proteomic, and demographic data. NKM integrates analytical ($α$) and biological ($β$) knowledge to guide feature grouping and control the hierarchical attention mechanisms to extract relevant patterns. By implementing Fusion Group-Aware Hierarchical Attention within the Koopman operator framework, NKM transforms complex nonlinear trajectories into interpretable linear representations. To demonstrate NKM's efficacy, we applied it to study the Alzheimer's Disease Neuroimaging Initiative (ADNI) dataset. Our results suggest that NKM consistently outperforms both traditional machine learning methods and deep learning models in forecasting trajectories of cognitive decline. Specifically, NKM (1) forecasts changes of multiple cognitive scores simultaneously, (2) quantifies differential biomarker contributions to predicting distinctive cognitive scores, and (3) identifies brain regions most predictive of cognitive deterioration. Together, NKM advances personalized, interpretable forecasting of future cognitive decline in AD using past multimodal data through an explainable, explicit system and reveals potential multimodal biological underpinnings of AD progression.

The Federal Highway Administration (FHWA) mandates that state Departments of Transportation (DOTs) collect reliable Annual Average Daily Traffic (AADT) data. However, many U.S. DOTs struggle to obtain accurate AADT, especially for unmonitored roads. While continuous count (CC) stations offer accurate traffic volume data, their implementation is expensive and difficult to deploy widely, compelling agencies to rely on short-duration traffic counts. This study proposes a machine learning framework, the first to our knowledge, to identify optimal representative days for conducting short count (SC) data collection to improve AADT prediction accuracy. Using 2022 and 2023 traffic volume data from the state of Texas, we compare two scenarios: an 'optimal day' approach that iteratively selects the most informative days for AADT estimation and a 'no optimal day' baseline reflecting current practice by most DOTs. To align with Texas DOT's traffic monitoring program, continuous count data were utilized to simulate the 24 hour short counts. The actual field short counts were used to enhance feature engineering through using a leave-one-out (LOO) technique to generate unbiased representative daily traffic features across similar road segments. Our proposed methodology outperforms the baseline across the top five days, with the best day (Day 186) achieving lower errors (RMSE: 7,871.15, MAE: 3,645.09, MAPE: 11.95%) and higher R^2 (0.9756) than the baseline (RMSE: 11,185.00, MAE: 5,118.57, MAPE: 14.42%, R^2: 0.9499). This research offers DOTs an alternative to conventional short-duration count practices, improving AADT estimation, supporting Highway Performance Monitoring System compliance, and reducing the operational costs of statewide traffic data collection.

Generative models are increasingly used to produce privacy-preserving synthetic data as a safe alternative to sharing sensitive training datasets. However, we demonstrate that such synthetic releases can still leak information about the underlying training samples through structural overlap in the data manifold. We propose a black-box membership inference attack that exploits this vulnerability without requiring access to model internals or real data. The attacker repeatedly queries the generative model to obtain large numbers of synthetic samples, performs unsupervised clustering to identify dense regions of the synthetic distribution, and then analyzes cluster medoids and neighborhoods that correspond to high-density regions in the original training data. These neighborhoods act as proxies for training samples, enabling the adversary to infer membership or reconstruct approximate records. Our experiments across healthcare, finance, and other sensitive domains show that cluster overlap between real and synthetic data leads to measurable membership leakage-even when the generator is trained with differential privacy or other noise mechanisms. The results highlight an under-explored attack surface in synthetic data generation pipelines and call for stronger privacy guarantees that account for distributional neighborhood inference rather than sample-level memorization alone, underscoring its role in privacy-preserving data publishing. Implementation and evaluation code are publicly available at:github.com/Cluster-Medoid-Leakage-Attack.

Foundation models have transformed computational pathology by providing generalizable representations from large-scale histology datasets. However, existing models are predominantly trained on surgical pathology data, which is enriched for non-nervous tissue and overrepresents neoplastic, inflammatory, metabolic, and other non-neurological diseases. Neuropathology represents a markedly different domain of histopathology, characterized by unique cell types (neurons, glia, etc.), distinct cytoarchitecture, and disease-specific pathological features including neurofibrillary tangles, amyloid plaques, Lewy bodies, and pattern-specific neurodegeneration. This domain mismatch may limit the ability of general-purpose foundation models to capture the morphological patterns critical for interpreting neurodegenerative diseases such as Alzheimer's disease, Parkinson's disease, and cerebellar ataxias. To address this gap, we developed NeuroFM, a foundation model trained specifically on whole-slide images of brain tissue spanning diverse neurodegenerative pathologies. NeuroFM demonstrates superior performance compared to general-purpose models across multiple neuropathology-specific downstream tasks, including mixed dementia disease classification, hippocampal region segmentation, and neurodegenerative ataxia identification encompassing cerebellar essential tremor and spinocerebellar ataxia subtypes. This work establishes that domain-specialized foundation models trained on brain tissue can better capture neuropathology-specific features than models trained on general surgical pathology datasets. By tailoring foundation models to the unique morphological landscape of neurodegenerative diseases, NeuroFM enables more accurate and reliable AI-based analysis for brain disease diagnosis and research, setting a precedent for domain-specific model development in specialized areas of digital pathology.

This paper addresses the challenges of storage and communication costs for large-scale datasets in resource-constrained edge devices by proposing a novel dataset quantization approach to reduce intra-sample redundancy. Unlike traditional dataset pruning and distillation methods that focus on inter-sample redundancy, the proposed method compresses each image by reducing redundant or less informative content within samples while preserving essential features. It first applies linear symmetric quantization to obtain an initial quantization range and scale for each sample. Then, an adaptive quantization allocation algorithm is introduced to distribute different quantization ratios for samples with varying precision requirements, maintaining a constant total compression ratio. The main contributions include: (1) being the first to use limited bits to represent datasets for storage reduction; (2) introducing a dataset-level quantization algorithm with adaptive ratio allocation; and (3) validating the method's effectiveness through extensive experiments on CIFAR-10, CIFAR-100, and ImageNet-1K. Results show that the method maintains model training performance while achieving significant dataset compression, outperforming traditional quantization and dataset pruning baselines under the same compression ratios.