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 gain and loss


Evaluating and Aligning Human Economic Risk Preferences in LLMs

Liu, Jiaxin, Yang, Yi, Tam, Kar Yan

arXiv.org Artificial Intelligence

Large Language Models (LLMs) are increasingly used in decision-making scenarios that involve risk assessment, yet their alignment with human economic rationality remains unclear. In this study, we investigate whether LLMs exhibit risk preferences consistent with human expectations across different personas. Specifically, we assess whether LLM-generated responses reflect appropriate levels of risk aversion or risk-seeking behavior based on individual's persona. Our results reveal that while LLMs make reasonable decisions in simplified, personalized risk contexts, their performance declines in more complex economic decision-making tasks. To address this, we propose an alignment method designed to enhance LLM adherence to persona-specific risk preferences. Our approach improves the economic rationality of LLMs in risk-related applications, offering a step toward more human-aligned AI decision-making.


The Gains and Loss of Artificial Intelligence in Security - Start, Manage and Grow Your Business

#artificialintelligence

There's no amount of benefit one can derive from artificial intelligence without also taking cognizance of the risks. When it comes to artificial intelligence and security, there's a whole lot of AI predictions out there. In a report published by Eric Mack, Simon Biggs, a professor of interdisciplinary arts at the University of Edinburgh said: "My expectation is that in 2030, A.I. will be in routine use to fight wars and kill people, far more effectively than we can currently kill." AI is the ability of machines to perform tasks that normally require human intelligence, for example, the ability to recognize patterns, the ability to learn from experience, the ability to draw conclusions, the ability to make predictions or taking action – which could be digitally done or through smart software. Artificial Intelligence are now massively used in fields like healthcare, manufacturing, education and cybersecurity.


Comment on "Tropical forests are a net carbon source based on aboveground measurements of gain and loss"

Science

Baccini et al. (Reports, 13 October 2017, p. 230) report MODIS-derived pantropical forest carbon change, with spatial patterns of carbon loss that do not correspond to higher-resolution Landsat-derived tree cover loss. The assumption that map results are unbiased and free of commission and omission errors is not supported. The application of passive moderate-resolution optical data to monitor forest carbon change overstates our current capabilities. Baccini et al. (1) report net tropical forest aboveground carbon stock change from Moderate Resolution Imaging Spectroradiometer (MODIS) data and purport to capture all forest carbon dynamics resulting from both natural and anthropogenic processes. We believe their method and results overstate current monitoring capabilities and may confuse the global community of practitioners working to establish robust and defensible forest carbon monitoring systems.


Response to Comment on "Tropical forests are a net carbon source based on aboveground measurements of gain and loss"

Science

Nonetheless, properly constructed comparisons designed to reconcile the two datasets yield up to 90% agreement (e.g., in South America). The Comment by Hansen et al. (1) provides the opportunity to distinguish our research, which quantifies dynamics in carbon density, from studies focused on the binary classification of changes in forest area (2). We use a multisensor (ICESat/MODIS), multistage approach combined with field measurements to map net change (i.e., losses and gains) in carbon density for the period 2003–2014 for each 463 m 463 m (21.4 ha) pixel in our dataset. Within each pixel, dynamic processes occurring at both the tree and stand level are necessarily considered in aggregate, meaning that losses and gains are happening always and concurrently wherever woody biomass is present. A loss is registered when losses are greater than gains, and vice versa.