auditor
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The Lawsuit That Could Reshape the AI Industry Is Going to Trial
Welcome back to, TIME's new twice-weekly newsletter about AI. If you're reading this in your browser, why not subscribe to have the next one delivered straight to your inbox? What to Know: Musk v. Altman Two artificial intelligence heavyweights will face off in court this spring, in a case that could have far-reaching outcomes for the future of AI. A judge ruled on Thursday that Elon Musk's lawsuit against Sam Altman, Microsoft, and other OpenAI co-founders can proceed to a jury trial, dismissing OpenAI's attempts to get the case thrown out. The lawsuit relates to the early days of OpenAI, which started as a nonprofit that was funded by around $38 million in donations from Musk.
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Auditing Fairness under Model Updates: Fundamental Complexity and Property-Preserving Updates
Ajarra, Ayoub, Basu, Debabrota
As machine learning models become increasingly embedded in societal infrastructure, auditing them for bias is of growing importance. However, in real-world deployments, auditing is complicated by the fact that model owners may adaptively update their models in response to changing environments, such as financial markets. These updates can alter the underlying model class while preserving certain properties of interest, raising fundamental questions about what can be reliably audited under such shifts. In this work, we study group fairness auditing under arbitrary updates. We consider general shifts that modify the pre-audit model class while maintaining invariance of the audited property. Our goals are two-fold: (i) to characterize the information complexity of allowable updates, by identifying which strategic changes preserve the property under audit; and (ii) to efficiently estimate auditing properties, such as group fairness, using a minimal number of labeled samples. We propose a generic framework for PAC auditing based on an Empirical Property Optimization (EPO) oracle. For statistical parity, we establish distribution-free auditing bounds characterized by the SP dimension, a novel combinatorial measure that captures the complexity of admissible strategic updates. Finally, we demonstrate that our framework naturally extends to other auditing objectives, including prediction error and robust risk.
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Optimistic Verifiable Training by Controlling Hardware Nondeterminism
The increasing compute demands of AI systems has led to the emergence of services that train models on behalf of clients lacking necessary resources. However, ensuring correctness of training and guarding against potential training-time attacks, such as data poisoning and backdoors, poses challenges. Existing works on verifiable training largely fall into two classes: proof-based systems, which can be difficult to scale, and ``optimistic'' methods that consider a trusted third-party auditor who replicates the training process. A key challenge with the latter is that hardware nondeterminism between GPU types during training prevents an auditor from replicating the training process exactly, and such schemes are therefore non-robust. We propose a method that combines training in a higher precision than the target model, rounding after intermediate computation steps, and storing rounding decisions based on an adaptive thresholding procedure, to successfully control for nondeterminism. Across three different NVIDIA GPUs (A40, Titan XP, RTX 2080 Ti), we achieve exact training replication at FP32 precision for both full-training and fine-tuning of ResNet-50 (23M) and GPT-2 (117M) models. Our verifiable training scheme significantly decreases the storage and time costs compared to proof-based systems.
Metric-Free Individual Fairness in Online Learning
We study an online learning problem subject to the constraint of individual fairness, which requires that similar individuals are treated similarly. Unlike prior work on individual fairness, we do not assume the similarity measure among individuals is known, nor do we assume that such measure takes a certain parametric form.
Simulating Misinformation Propagation in Social Networks using Large Language Models
Maurya, Raj Gaurav, Shukla, Vaibhav, Dandekar, Raj Abhijit, Dandekar, Rajat, Panat, Sreedath
Misinformation on social media thrives on surprise, emotion, and identity-driven reasoning, often amplified through human cognitive biases. To investigate these mechanisms, we model large language model (LLM) personas as synthetic agents that mimic user-level biases, ideological alignments, and trust heuristics. Within this setup, we introduce an auditor--node framework to simulate and analyze how misinformation evolves as it circulates through networks of such agents. News articles are propagated across networks of persona-conditioned LLM nodes, each rewriting received content. A question--answering-based auditor then measures factual fidelity at every step, offering interpretable, claim-level tracking of misinformation drift. We formalize a misinformation index and a misinformation propagation rate to quantify factual degradation across homogeneous and heterogeneous branches of up to 30 sequential rewrites. Experiments with 21 personas across 10 domains reveal that identity- and ideology-based personas act as misinformation accelerators, especially in politics, marketing, and technology. By contrast, expert-driven personas preserve factual stability. Controlled-random branch simulations further show that once early distortions emerge, heterogeneous persona interactions rapidly escalate misinformation to propaganda-level distortion. Our taxonomy of misinformation severity -- spanning factual errors, lies, and propaganda -- connects observed drift to established theories in misinformation studies. These findings demonstrate the dual role of LLMs as both proxies for human-like biases and as auditors capable of tracing information fidelity. The proposed framework provides an interpretable, empirically grounded approach for studying, simulating, and mitigating misinformation diffusion in digital ecosystems.
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AuditCopilot: Leveraging LLMs for Fraud Detection in Double-Entry Bookkeeping
Kadir, Md Abdul, Vasu, Sai Suresh Macharla, Nair, Sidharth S., Sonntag, Daniel
Auditors rely on Journal Entry Tests (JETs) to detect anomalies in tax-related ledger records, but rule-based methods generate overwhelming false positives and struggle with subtle irregularities. We investigate whether large language models (LLMs) can serve as anomaly detectors in double-entry bookkeeping. Benchmarking SoTA LLMs such as LLaMA and Gemma on both synthetic and real-world anonymized ledgers, we compare them against JETs and machine learning baselines. Our results show that LLMs consistently outperform traditional rule-based JETs and classical ML baselines, while also providing natural-language explanations that enhance interpretability. These results highlight the potential of \textbf{AI-augmented auditing}, where human auditors collaborate with foundation models to strengthen financial integrity.
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