The rapid ascent of Foundation Models (FMs), enabled by the Transformer architecture, drives the current AI ecosystem. Characterized by large-scale training and downstream adaptability, FMs (as GPT family) have achieved massive public adoption, fueling a turbulent market shaped by platform economics and intense investment. Assessing the vulnerability of this fast-evolving industry is critical yet challenging due to data limitations. This paper proposes a synthetic AI Vulnerability Index (AIVI) focusing on the upstream value chain for FM production, prioritizing publicly available data. We model FM output as a function of five inputs: Compute, Data, Talent, Capital, and Energy, hypothesizing that supply vulnerability in any input threatens the industry. Key vulnerabilities include compute concentration, data scarcity and legal risks, talent bottlenecks, capital intensity and strategic dependencies, as well as escalating energy demands. Acknowledging imperfect input substitutability, we propose a weighted geometrical average of aggregate subindexes, normalized using theoretical or empirical benchmarks. Despite limitations and room for improvement, this preliminary index aims to quantify systemic risks in AI's core production engine, and implicitly shed a light on the risks for downstream value chain.

The strategic choice of model "openness" has become a defining issue for the foundation model (FM) ecosystem. While this choice is intensely debated, its underlying economic drivers remain underexplored. We construct a two-period game-theoretic model to analyze how openness shapes competition in an AI value chain, featuring an incumbent developer, a downstream deployer, and an entrant developer. Openness exerts a dual effect: it amplifies knowledge spillovers to the entrant, but it also enhances the incumbent's advantage through a "data flywheel effect," whereby greater user engagement today further lowers the deployer's future fine-tuning cost. Our analysis reveals that the incumbent's optimal first-period openness is surprisingly non-monotonic in the strength of the data flywheel effect. When the data flywheel effect is either weak or very strong, the incumbent prefers a higher level of openness; however, for an intermediate range, it strategically restricts openness to impair the entrant's learning. This dynamic gives rise to an "openness trap," a critical policy paradox where transparency mandates can backfire by removing firms' strategic flexibility, reducing investment, and lowering welfare. We extend the model to show that other common interventions can be similarly ineffective. Vertical integration, for instance, only benefits the ecosystem when the data flywheel effect is strong enough to overcome the loss of a potentially more efficient competitor. Likewise, government subsidies intended to spur adoption can be captured entirely by the incumbent through strategic price and openness adjustments, leaving the rest of the value chain worse off. By modeling the developer's strategic response to competitive and regulatory pressures, we provide a robust framework for analyzing competition and designing effective policy in the complex and rapidly evolving FM ecosystem.

Large Language Models (LLMs) have excelled in question-answering (QA) tasks within single domains. However, their reasoning and coordination capabilities in complex, multi-stage scenarios remain underexplored. Existing benchmarks typically focus on isolated tasks or narrow domains, overlooking models' abilities for multi-stage collaboration and optimization without explicit external guidance. To bridge this gap, we propose \textbf{MSCoRe}, a novel benchmark comprising 126696 domain-specific QA instances spanning scenarios in automotive, pharmaceutical, electronics, and energy sectors. The dataset is created using a structured three-phase pipeline: dynamic sampling, iterative question-answer generation, and a multi-level quality assessment to ensure data quality. Tasks are further categorized into three difficulty levels according to stage coverage and complexity. With MSCoRe, we have conducted a comprehensive evaluation of various state-of-the-art LLM agents. The commercial models performed best across all tasks and scenarios, but a notable gap in ROUGE scores remains between simple and complex tasks. We also tested the models' robustness and found that their performance is negatively affected by noisy data. MSCoRe provides a valuable new resource for the community to evaluate and improve multi-stage reasoning in LLM agents. The code and data are available at https://github.com/D3E0-source/MSCoRE.

The study investigates the coffee value chain dynamics in Davao del Sur using an agent-based model. Three main factors driving interactions among key players were identified: trust, risk, and transaction costs. The model was constructed using NetLogo 6.3.0, and data from a survey questionnaire collected three data points from BACOFA members. Five cases were explored, with each scenario simulated 1000 times. Findings suggest that producers often sell to the market rather than the cooperative due to higher prices. However, producers tend to prioritize trust in buyers and their risk attitude, leading to increased sales to the cooperative. The producer's risk attitude significantly influences their decision-making, affecting performance outcomes such as loans, demand, and price changes. All three factors play a role and exert varying impacts on the value chain. So, the stakeholders' decisions on prioritizing factors in improving relationships depend on their priorities. Nonetheless, simulations show that establishing a harmonious system benefiting all parties is possible. However, achieving this requires adjustments to demand, pricing, trust, and risk attitudes of key players, which may not align with the preferences of some parties in reality.

Data-sharing remains limited and companies across the value chain have vastly different needs and capabilities. There are also few standards and data governance protocols in place, and more talent and skills are needed to keep pace with the technological wave. All the same, progress is being made and the potential for AI in the food sector is huge. Predictive analytics are accelerating R&D cycles in crop and food science. AI reduces the time and resources needed to experiment with new food products and turns traditional trial-and-error cycles into more efficient data-driven discoveries.

Safety Management Systems (SMSs) have been used in many safety-critical industries and are now being developed and deployed in the automated driving system (ADS)-equipped vehicle (AV) sector. Industries with decades of SMS deployment have established frameworks tailored to their specific context. Several frameworks for an AV industry SMS have been proposed or are currently under development. These frameworks borrow heavily from the aviation industry although the AV and aviation industries differ in many significant ways. In this context, there is a need to review the approach to develop an SMS that is tailored to the AV industry, building on generalized lessons learned from other safety-sensitive industries. A harmonized AV-industry SMS framework would establish a single set of SMS practices to address management of broad safety risks in an integrated manner and advance the establishment of a more mature regulatory framework. This paper outlines a proposed SMS framework for the AV industry based on robust taxonomy development and validation criteria and provides rationale for such an approach. Keywords: Safety Management System (SMS), Automated Driving System (ADS), ADS-Equipped Vehicle, Autonomous Vehicles (AV)

This workshop will grow and consolidate a community of interdisciplinary CSCW researchers focusing on the topic of contestable AI. As an outcome of the workshop, we will synthesize the most pressing opportunities and challenges for contestability along AI value chains in the form of a research roadmap. This roadmap will help shape and inspire imminent work in this field. Considering the length and depth of AI value chains, it will especially spur discussions around the contestability of AI systems along various sites of such chains. The workshop will serve as a platform for dialogue and demonstrations of concrete, successful, and unsuccessful examples of AI systems that (could or should) have been contested, to identify requirements, obstacles, and opportunities for designing and deploying contestable AI in various contexts. This will be held primarily as an in-person workshop, with some hybrid accommodation. The day will consist of individual presentations and group activities to stimulate ideation and inspire broad reflections on the field of contestable AI. Our aim is to facilitate interdisciplinary dialogue by bringing together researchers, practitioners, and stakeholders to foster the design and deployment of contestable AI.

There is growing recognition among financial institutions, financial regulators and policy makers of the importance of addressing nature-related risks and opportunities. Evaluating and assessing nature-related risks for financial institutions is challenging due to the large volume of heterogeneous data available on nature and the complexity of investment value chains and the various components' relationship to nature. The dual problem of scaling data analytics and analysing complex systems can be addressed using Artificial Intelligence (AI). We address issues such as plugging existing data gaps with discovered data, data estimation under uncertainty, time series analysis and (near) real-time updates. This report presents potential AI solutions for models of two distinct use cases, the Brazil Beef Supply Use Case and the Water Utility Use Case. Our two use cases cover a broad perspective within sustainable finance. The Brazilian cattle farming use case is an example of greening finance - integrating nature-related considerations into mainstream financial decision-making to transition investments away from sectors with poor historical track records and unsustainable operations. The deployment of nature-based solutions in the UK water utility use case is an example of financing green - driving investment to nature-positive outcomes. The two use cases also cover different sectors, geographies, financial assets and AI modelling techniques, providing an overview on how AI could be applied to different challenges relating to nature's integration into finance. This report is primarily aimed at financial institutions but is also of interest to ESG data providers, TNFD, systems modellers, and, of course, AI practitioners.

"Monopoly," said Peter Thiel, Silicon Valley's answer to Darth Vader, "is the condition of every successful business." This aspiration is widely shared by Gamman, the new acronynm for the Valley's giants – Google, Apple, Microsoft, Meta, Amazon and Nvidia. And the arrival of AI has sharpened the appetite of each for attaining that blessed state before the others get there. One symptom of their anxiety is the way they have been throwing unconscionable amounts of money at the 70-odd generative AI startups that have mushroomed since it became clear that AI was going to be the new new thing. Microsoft reportedly put 13bn (about 10.4bn) into OpenAI, for example, but it was also the lead investor in a 1.3bn funding round for Inflection, Deepmind co-founder Mustafa Suleyman's startup.

Modern manufacturing value chains require intelligent orchestration of processes across company borders in order to maximize profits while fostering social and environmental sustainability. However, the implementation of integrated, systems-level approaches for data-informed decision-making along value chains is currently hampered by privacy concerns associated with cross-organizational data exchange and integration. We here propose Privacy-Preserving Partial Least Squares (P3LS) regression, a novel federated learning technique that enables cross-organizational data integration and process modeling with privacy guarantees. P3LS involves a singular value decomposition (SVD) based PLS algorithm and employs removable, random masks generated by a trusted authority in order to protect the privacy of the data contributed by each data holder. We demonstrate the capability of P3LS to vertically integrate process data along a hypothetical value chain consisting of three parties and to improve the prediction performance on several process-related key performance indicators. Furthermore, we show the numerical equivalence of P3LS and PLS model components on simulated data and provide a thorough privacy analysis of the former. Moreover, we propose a mechanism for determining the relevance of the contributed data to the problem being addressed, thus creating a basis for quantifying the contribution of participants.