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Finance, VC & PE

Where the money meets the ethics: AI funding rounds, VC and PE moves, valuations and market power — tracked daily.

Barriers to Evidence in AI-Related Cases and the Privatization of Proof

Evidence lies at the core of litigation, but it is increasingly difficult to obtain in AI-related disputes. Even when a claimant's position has merit, cases are often settled or dismissed because decisive facts are hidden inside proprietary models, platform logs, and protected databases. Grounding our discussion in past and ongoing cases, we investigate how asymmetries in access, resources, and expertise can create significant barriers to evidence in AI-related cases. We show how developers and
arXiv 72d ago Research Finance, VC & PE

Investigating Concept Alignment Using Implausible Category Members

Developing AI systems with a human-like understanding of everyday concepts is a key step towards developing safe, reliable systems whose behavior makes sense to humans. When probing concept understanding, asking questions about plausible category members (e.g., "Is a car a vehicle?") is likely to recall patterns in the model's vast training data. We pursue an alternative strategy, characterizing the boundaries of conceptual categories by asking about implausible category members (e.g., "Is an ol
arXiv 72d ago Research Safety & alignmentFinance, VC & PE

Faster Completion, Less Learning: Generative AI Reduced Study Time on Math Problems and the Knowledge They Build

How much have students' ordinary learning processes shifted in response to generative AI, and how does that affect their durable learning outcomes? Self-report surveys show little change, while small-scale behavioral studies report widespread AI use without the scale or duration to measure learning consequences. We address both questions using a ten-year panel of $3.2$ million ALEKS learning interactions for investigating time-on-task, complemented by ALEKS PPL placement-assessment data for exam
arXiv 72d ago Research Children & educationFinance, VC & PE

Mechanics of Bias and Reasoning: Interpreting the Impact of Chain-of-Thought Prompting on Gender Bias in LLMs

Large language models (LLMs) are increasingly deployed in socially sensitive settings despite substantial documentation that they encode gender biases. Chain-of-Thought (CoT) prompting has been proposed as a bias-mitigation approach. However, existing evaluations primarily focus on changes in LLM benchmark performance, providing limited insight into whether apparent bias reductions reflect meaningful changes in a model's internal mechanisms. In this work, we investigate how CoT prompting affects
arXiv 73d ago Research Bias & fairnessFinance, VC & PE

LP-Eval: Rubric and Dataset for Measuring the Quality of Legal Proposition Generation

Legal proposition generation is central to legal reasoning and doctrinal scholarship, yet remain under-examined in Legal NLP. This paper investigates the automatic generation and evaluation of legal propositions from decisions of the Court of Justice of the European Union using large language models (LLMs). We introduce LP-Eval, a three-step evaluation rubric co-designed with legal experts that decomposes legal proposition quality into formal validity and substantive dimensions. Using this rubri
arXiv 73d ago Research Finance, VC & PE

Chunking German Legal Code

This paper investigates chunking strategies for retrieval-augmented generation on German statutory law, using the German Civil Code as a structured benchmark corpus. We implement and compare a range of segmentation approaches, including structural units (sections, subsections, sentences, propositions), fixed-size windows, contextual chunking, semantic clustering, Lumber-style chunking, and RAPTOR-based hierarchical retrieval. All methods are evaluated on a legal question-answering dataset with s
arXiv 73d ago Research RegulationFinance, VC & PE

Using Biometrics to Understand AI-Assisted Coding Performance and its Perception

AI-based code assistants are transforming software development, yet we lack empirical evidence on how they affect developers' cognitive processes. We present a multisite study investigating the neurophysiological correlates of AI-assisted programming through a within-subjects crossover design. We recruited participants at two universities (Bari, Italy, and Copenhagen, Denmark) and collected electroencephalography, eye-tracking, electrodermal activity, and heart rate variability data alongside a
arXiv 73d ago Research PrivacyFinance, VC & PE

Semantic Generative Tuning for Unified Multimodal Models

Unified multimodal models (UMMs) strive to consolidate visual understanding and visual generation within a single architecture. However, prevailing training paradigms independently optimize understanding via sparse text signals and generation through dense pixel objectives. Such a decoupled strategy yields misaligned representation spaces, isolating visual understanding from generation and hindering their mutual reinforcement. This work presents the first systematic investigation into generative
arXiv 74d ago Research Safety & alignmentFinance, VC & PE

The Hidden Cost of Contextual Sycophancy: an AI Literacy Intervention in Human-AI Collaboration

Large Language Models (LLMs) are increasingly used in educational settings as interactive tools for collaboration. However, their tendency toward sycophancy, aligning with user beliefs even when incorrect, raises concerns for learning and decision-making, especially for less knowledgeable users. This study investigates how sycophantic alignment emerges in authentic multi-turn human-AI interactions and whether interventions targeting increasing AI literacy and prompting competencies can mitigate
arXiv 74d ago Research Safety & alignmentFinance, VC & PE

Improved Baselines with Representation Autoencoders

Representation Autoencoders (RAE) replace traditional VAE with pretrained vision encoders. In this paper, we systematically investigate several design choices and find three insights which simplify and improve RAE. First, we study a generalized formulation where the representation is defined as sum of the last k encoder layers rather than solely the final layer. This simple change greatly improves reconstruction without encoder finetuning or specialized data (e.g., text, faces). Second, we study
arXiv 74d ago Research Finance, VC & PE

Babel: Jailbreaking Safety Attention via Obfuscation Distribution Optimized Sampling

Despite rigorous safety alignment, Large Language Models (LLMs) remain vulnerable to jailbreak attacks. Existing black-box methods often rely on heuristic templates or exhaustive trials, lacking mechanistic interpretability and query efficiency. In this study, we investigate an intrinsic vulnerability in the safety mechanisms of LLMs, where safety alignment relies on a small set of sparsely distributed attention heads, leaving much of the representational space weakly monitored. We formalize thi
arXiv 74d ago Research Safety & alignmentFinance, VC & PE

Knowing the Rules Is Not Enough: Student Regulatory Awareness and Use of GenAI in Higher Education

Context: Generative Artificial Intelligence (GenAI) tools such as ChatGPT are increasingly integrated into students learning practices. While previous research mainly examines adoption rates and attitudes, students awareness of institutional regulations and their perceived compliance remain unexplored. Understanding whether regulatory awareness influences student behavior is therefore important as higher education institutions create and apply AI policies. Objective: This study investigates how
arXiv 76d ago Research RegulationChildren & education

Prediction Is Not Physics: Learning and Evaluating Conserved Quantities in Neural Simulators

A diffusion model trained on Hamiltonian trajectories can achieve rollout MSE near $10^{-3}$, but the standard deviation of its energy over time is between 7500 and 36000 times larger than the ground-truth energy standard deviation, indicating a failure to preserve conservation laws. This gap motivates our central question of whether neural networks can learn or select globally conserved quantities from physical trajectories. We investigate this across three Hamiltonian systems: projectile motio
arXiv 76d ago Research EnvironmentFinance, VC & PE

Auditing Discriminatory Patterns in Mortgage Lending Through Association Rules and Fair Binning

Mortgage lending in the United States exhibits persistent racial and gender disparities. We investigate whether standard data preprocessing steps, specifically attribute binning, amplify these disparities in downstream pattern mining. Using 103,481 cleaned mortgage applications from the HMDA 2023 dataset (Chicago metropolitan area), we build a three-stage pipeline: (1) a PySpark data cleaning and binning pipeline that implements both standard equal-frequency binning and the epsilon-biased fair b
arXiv 76d ago Research Bias & fairnessTransparency

Quantum Futures Interactive: A Live Demonstration of Post-Quantum Blockchain Security, Infrastructure Tradeoffs, and Sustainable Distributed Trust

Advances in quantum computing challenge the hardness assumptions underlying widely deployed public-key cryptography in blockchain systems. Although post-quantum cryptography (PQC) standards are emerging, understanding quantum risk remains fragmented across research, engineering, governance, and investment communities. This demo presents Quantum Futures Interactive, a live interdisciplinary demonstration combining educational visualization, participatory interaction, and demonstrative post-quantu
arXiv 77d ago Research RegulationFinance, VC & PE

Static and Dynamic Strategies for Influencing Opinions in Social Networks

The ability of a small set of coordinated actors to manipulate opinions in online social networks poses a serious challenge to the fairness and integrity of public debate. We investigate this problem by studying how targeted stubborn agents can shift the average opinion of a network governed by the Hegselmann-Krause bounded-confidence dynamics. Experiments are conducted on weighted LFR benchmark networks with community structure, using multiple node-selection strategies based on degree, strength
arXiv 78d ago Research Bias & fairnessAgents & autonomy

On Strong Equivalence Notions in Logic Programming and Abstract Argumentation

Strong equivalence between knowledge bases ensures the possibility of replacing one with the other without affecting reasoning outcomes, in any given context. This makes it a crucial property in nonmonotonic formalisms. In particular, the fields of logic programming and abstract argumentation provide primary examples in which this property has been subject to vast investigations. However, while (classes of) logic programs and abstract argumentation frameworks are known to be semantically equival
arXiv 78d ago Research Finance, VC & PE

Beyond Anthropomorphism: Exploring the Roles of Perceived Non-humanity and Structural Similarity in Deep Self-Disclosure Toward Generative AI

This study investigates deep self-disclosure toward generative AI by examining perceived non-humanity and structural similarity as psychological factors beyond anthropomorphism. Perceived non-humanity may reduce evaluation apprehension, whereas structural similarity refers to the perceived logical alignment between a user's thinking and AI responses. Using cross-sectional survey data from 2,400 participants collected in 2025, this study analyzed associations with both the occurrence and depth of
arXiv 79d ago Research Safety & alignmentTransparency

What properties of reasoning supervision are associated with improved downstream model quality?

Validating training data for reasoning models typically requires expensive trial-and-error fine-tuning cycles. In this work, we investigate whether the utility of a reasoning dataset can be reliably predicted prior to training using intrinsic data metrics. We propose a suite of quantitative measures and evaluate their predictive power by fine-tuning 8B and 11B models on semantically distinct variants of a Polish reasoning dataset. Our analysis reveals that these intrinsic metrics demonstrate str
arXiv 79d ago Research Finance, VC & PE

Anatomy-Slot: Unsupervised Anatomical Factorization for Homologous Bilateral Reasoning in Retinal Diagnosis

Retinal diagnosis is inherently bilateral: clinicians compare homologous structures across eyes (e.g., optic disc asymmetry), yet most deep models operate on monocular representations. We investigate whether explicit structural correspondence improves diagnosis, and propose Anatomy-Slot to operationalize this hypothesis. Anatomy-Slot introduces an unsupervised anatomical bottleneck by decomposing patch tokens into a set of emergent, structurally-coherent slots that correspond to anatomical regio
arXiv 79d ago Research HealthcareFinance, VC & PE

Large Language Models for Agentic NetOps and AIOps: Architectures, Evaluation, and Safety

Large language models are increasingly being used to support network operations (NetOps) and artificial intelligence for IT operations (AIOps), including incident investigation, root-cause analysis, configuration synthesis, and limited self-healing. In both NetOps and AIOps, this shift is changing how tasks are managed. Agent-based operations work as workflows, from gathering evidence to taking action, following permissions, policies, and checks, and providing rollback options when necessary. Th
arXiv 80d ago Research Agents & autonomyFinance, VC & PE

Reimagining Assessment in the Age of Generative AI: Lessons from Open-Book Exams with ChatGPT

Generative AI systems such as ChatGPT challenge traditional assumptions about academic assessment by enabling students to generate explanations, code, and solutions in real time. Rather than attempting to restrict AI use, this study investigates how students actually interact with such systems during formal evaluation. Engineering students were permitted to use ChatGPT during take-home open-book exams and were required to submit interaction transcripts alongside exam solutions. This provided dir
arXiv 80d ago Research Children & educationFinance, VC & PE

Fair outputs, Biased Internals: Causal Potency and Asymmetry of Latent Bias in LLMs for High-Stakes Decisions

Instruction-tuned language models exhibit behavioural fairness in high-stakes decisions while retaining biased associations in their internal representations. However, whether these suppressed representations can affect model outputs - and whether such causal potency is symmetric across demographic groups - remains unknown. We investigate the use of open-weight models for mortgage underwriting using matched applications that differ only in racially-associated names and reveal a critical disconne
arXiv 80d ago Research Bias & fairnessFinance, VC & PE

Incentivizing Truthfulness and Collaborative Fairness in Bayesian Learning

Collaborative machine learning involves training high-quality models using datasets from a number of sources. To incentivize sources to share data, existing data valuation methods fairly reward each source based on its data submitted as is. However, as these methods do not verify nor incentivize data truthfulness, the sources can manipulate their data (e.g., by submitting duplicated or noisy data) to artificially increase their valuations and rewards or prevent others from benefiting. This paper
arXiv 80d ago Research Bias & fairnessFinance, VC & PE

A Mechanistic Investigation of Supervised Fine Tuning

The cosine similarity between a large language model's hidden activations before and after Supervised Fine-Tuning (SFT) remains very high. This, at first glance, suggests that SFT leaves the model's activation geometry largely undisturbed. However, projecting both sets of activations through a Sparse Autoencoder (SAE) pretrained on the base model reveals that the underlying sparse latents diverge significantly. We introduce a novel investigative pipeline which utilizes these pretrained SAEs as a
arXiv 80d ago Research Finance, VC & PE

Fairness vs Performance: Characterizing the Pareto Frontier of Algorithmic Decision Systems

Designing fair algorithmic decision systems requires balancing model performance with fairness toward affected individuals: More fairness might require sacrificing some performance and vice versa, yet the space of possible trade-offs is still poorly understood. We investigate fairness in binary prediction-based decision problems by conceptualizing decision making as a multi-objective optimization problem that simultaneously considers decision-maker utility and group fairness. We investigate the
arXiv 81d ago Research Bias & fairnessFinance, VC & PE

SLASH the Sink: Sharpening Structural Attention Inside LLMs

Large Language Models (LLMs) show remarkable semantic understanding but often struggle with structural understanding when processing graph topologies in a serialized format. Existing solutions rely on training external graph-based adapters or fine-tuning, which incur high costs and lost generalizability. In this work, we investigate the internal mechanisms of LLMs and present a critical finding: LLMs spontaneously reconstruct the graph's topology internally, evidenced by a distinct "sawtooth" pa
arXiv 81d ago Research Finance, VC & PE

CORTEG: Foundation Models Enable Cross-Modality Representation Transfer from Scalp to Intracranial Brain Recordings

Intracranial electrocorticography (ECoG) offers high-signal-to-noise access to cortical activity for brain-computer interfaces, yet limited per-patient data has led most prior work to rely on small, subject-specific decoders that neglect information shared across patients. We investigate whether large pretrained scalp-EEG foundation models (EEG FMs) can be adapted to ECoG, enabling cross-patient learning and competitive decoding performance while calibrating to a held-out patient in 10-30 minute
arXiv 81d ago Research HealthcareFinance, VC & PE

Scaling Vision Models Does Not Consistently Improve Localisation-Based Explanation Quality

Artificial intelligence models are increasingly scaled to improve predictive accuracy, yet it remains unclear whether scale improves the quality of post-hoc explanations. We investigate this relationship by evaluating 11 computer vision models representing increasing levels of depth and complexity within the ResNet, DenseNet, and Vision Transformer families, trained from scratch or pretrained, across three image datasets with ground-truth segmentation masks. For each model, we generate explanati
arXiv 81d ago Research Finance, VC & PE

TokaMind for Power Grid: Cross-Domain Transfer from Fusion Plasma

TokaMind is a multi-modal transformer (MMT) foundation model pre-trained on tokamak plasma diagnostics data from MAST, where it was shown to outperform CNN-based approaches on fusion benchmarks. We investigate whether its learned representations generalize to physically distinct but structurally analogous domains. Through systematic experimentation across four domains-industrial bearing degradation, NASA CMAPSS turbofan degradation, and two independent power grid PMU datasets-we identify four tr
arXiv 82d ago Research HealthcareFinance, VC & PE

Cornerstones or Stumbling Blocks? Deciphering the Rock Tokens in On-Policy Distillation

While recent work in Reinforcement Learning with Verifiable Rewards (RLVR) has shown that a small subset of critical tokens disproportionately drives reasoning gains, an analogous token-level understanding of On-Policy Distillation (OPD) remains largely unexplored. In this work, we investigate high-loss tokens, a token type that--as the most direct signal of student-teacher mismatch under OPD's per-token KL objective--should progressively diminish as training converges according to existing stud
arXiv 83d ago Research RegulationChildren & education

Do LLMs Experience an Internal Polylogue? Investigating Reasoning through the Lens of Personas

Recent work shows that large language models (LLMs) encode behavioural traits ("personas") as linear directions in activation space, often called "persona vectors". Prior work has used such directions as static handles for behavioural steering. Building on this, we treat them as dynamic signals instead: probes we can monitor and intervene on as reasoning unfolds. We use the term polylogue to denote the time series of alignments between persona vectors and hidden activations over the course of ge
arXiv 83d ago Research Finance, VC & PE

Investigating Anisotropy in Visual Grounding under Controlled Counterfactual Perturbations

Visual Grounding benchmarks assume that the object described by a referring expression is always present in the image, and grounding models are therefore rarely evaluated under semantically mismatched captions. In such cases, models frequently exhibit approximation behavior, producing a plausible bounding box that satisfies only part of the expression (\eg, preserving the original object while ignoring modified contextual cues). Because mismatched captions represent realistic edge cases, this be
arXiv 83d ago Research Finance, VC & PE

A Geometric Perspective on Next-Token Prediction in Large Language Models: Three Emerging Phases

We investigate the geometry of predictive information across the layers of large language models (LLMs). We repurpose representation lenses-learned affine maps trained to predict the next token from intermediate residual streams-as geometric diagnostic tools. Rather than asking what the model predicts at each layer, we ask where predictive information resides and how it evolves across depth. We define at each layer a predictive readout subspace as the dominant k-dimensional singular subspace of
arXiv 83d ago Research HealthcareFinance, VC & PE

Unlearners Can Lie: Evaluating and Improving Honesty in LLM Unlearning

Unlearning in large language models (LLMs) aims to remove harmful training data while preserving overall utility. However, we find that existing methods often hallucinate, generate abnormal token sequences, or behave inconsistently, raising safety and trust concerns. According to prior literature on LLM honesty, such behaviors are often associated with dishonesty. This motivates us to investigate the notion of honesty in the context of model unlearning. We propose a formal definition of unlearni
arXiv 83d ago Research Finance, VC & PE

Quality-Conditioned Agreement in Automated Short Answer Scoring: Mid-Range Degradation and the Impact of Task-Specific Adaptation

Automated short answer scoring (ASAS) is shifting from discriminative, fine-tuned models to large language models (LLMs) used in few-shot settings. This paradigm leverages LLMs broad world knowledge and ease of deployment, but limited task-specific data may reduce alignment on complex scoring tasks. In particular, its impact on scoring partially correct responses that require nuanced interpretation remains underexplored. We investigate the relationship between the degree of task-specific adaptat
arXiv 84d ago Research Bias & fairnessSafety & alignment

Accelerated and data-efficient flow prediction in stirred tanks via physics-informed learning

The simulation of fluid flows is computationally expensive due to the complexity of its governing partial differential equations. Machine learning models offer a potential surrogate, enabling learning from simulations and significantly faster predictions of flow fields. However, these models require large training datasets, which introduces a trade-off between dataset generation cost and predictive accuracy. In this work, we investigate the relationship between the size of the training-set and a
arXiv 84d ago Research Finance, VC & PE

Activation Differences Reveal Backdoors: A Comparison of SAE Architectures

Backdoor attacks on language models pose a significant threat to AI safety, where models behave normally on most inputs but exhibit harmful behavior when triggered by specific patterns. Detecting such backdoors through mechanistic interpretability remains an open challenge. We investigate two sparse autoencoder architectures -- Crosscoders and Differential SAEs (Diff-SAE) -- for isolating backdoor-related features in fine-tuned models. Using a controlled SQL injection backdoor triggered by year-
arXiv 84d ago Research Safety & alignmentFinance, VC & PE

AI-Generated Images: What Humans and Machines See When They Look at the Same Image

The misuse of generative AI in online disinformation campaigns highlights the urgent need for transparent and explainable detection systems. In this work, we investigate how detectors for AI-generated images can be more effective in providing human-understandable explanations for their predictions. To this end, we develop a suite of detectors with various architectures and fine-tuning strategies, trained on our large-scale photorealistic fake image dataset, AIText2Image, and assess their perform
arXiv 85d ago Research MisinformationTransparency

When Language Overwrites Vision: Over-Alignment and Geometric Debiasing in Vision-Language Models

Vision-Language Models (VLMs) increasingly power high-stakes applications, from medical imaging to autonomous systems, yet they routinely hallucinate, confidently describing content not present in the input. We investigate the root causes of these failure modes with a mechanistic analysis focusing on the decoder-based VLMs. We trace these failure modes to a geometric over-alignment: to bridge the modality gap required by attention mechanisms, decoder-based VLMs over-align visual embeddings with
arXiv 85d ago Research Safety & alignmentHealthcare
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