Predicting future observations plays a central role in machine learning, biology, economics, and many other fields. It lies at the heart of organizational principles such as the variational free energy principle and has even been shown -- based on the second law of thermodynamics -- to be necessary for reaching the fundamental energetic limits of sequential information processing. While the usefulness of the predictive paradigm is undisputed, complex adaptive systems that interact with their environment are more than just predictive machines: they have the power to act upon their environment and cause change. In this work, we develop a framework to analyze the thermodynamics of information processing in percept-action loops -- a model of agent-environment interaction -- allowing us to investigate the thermodynamic implications of actions and percepts on equal footing. To this end, we introduce the concept of work capacity -- the maximum rate at which an agent can expect to extract work from its environment. Our results reveal that neither of two previously established design principles for work-efficient agents -- maximizing predictive power and forgetting past actions -- remains optimal in environments where actions have observable consequences. Instead, a trade-off emerges: work-efficient agents must balance prediction and forgetting, as remembering past actions can reduce the available free energy. This highlights a fundamental departure from the thermodynamics of passive observation, suggesting that prediction and energy efficiency may be at odds in active learning systems.

Emerging Internet of Things (IoT) platforms provide sophisticated capabilities to automate IoT services by enabling occupants to create trigger-action rules. Multiple trigger-action rules can physically interact with each other via shared environment channels, such as temperature, humidity, and illumination. We refer to inter-rule interactions via shared environment channels as a physical inter-rule vulnerability. Such vulnerability can be exploited by attackers to launch attacks against IoT systems. We propose a new framework to proactively discover possible physical inter-rule interactions from user requirement specifications (i.e., descriptions) using a deep learning approach. Specifically, we utilize the Transformer model to generate trigger-action rules from their associated descriptions. We discover two types of physical inter-rule vulnerabilities and determine associated environment channels using natural language processing (NLP) tools. Given the extracted trigger-action rules and associated environment channels, an approach is proposed to identify hidden physical inter-rule vulnerabilities among them. Our experiment on 27983 IFTTT style rules shows that the Transformer can successfully extract trigger-action rules from descriptions with 95.22% accuracy. We also validate the effectiveness of our approach on 60 SmartThings official IoT apps and discover 99 possible physical inter-rule vulnerabilities.