Related papers: Algorithmic Insurance
Existing approaches to algorithmic fairness aim to ensure equitable outcomes if human decision-makers comply perfectly with algorithmic decisions. However, perfect compliance with the algorithm is rarely a reality or even a desirable…
We study learning algorithms that seek to minimize the conditional value-at-risk (CVaR), when all the learner knows is that the losses incurred may be heavy-tailed. We begin by studying a general-purpose estimator of CVaR for potentially…
Rapid advancements in artificial intelligence (AI) have sparked growing concerns among experts, policymakers, and world leaders regarding the potential for increasingly advanced AI systems to pose catastrophic risks. Although numerous risks…
Classical multi-armed bandit problems use the expected value of an arm as a metric to evaluate its goodness. However, the expected value is a risk-neutral metric. In many applications like finance, one is interested in balancing the…
Imitation learning algorithms learn viable policies by imitating an expert's behavior when reward signals are not available. Generative Adversarial Imitation Learning (GAIL) is a state-of-the-art algorithm for learning policies when the…
The increasing adoption of AI systems in hiring has raised concerns about algorithmic bias and accountability, prompting regulatory responses including the EU AI Act, NYC Local Law 144, and Colorado's AI Act. While existing research…
In this paper, we study two classes of optimal reinsurance models from perspectives of both insurers and reinsurers by minimizing their convex combination where the risk is measured by a distortion risk measure and the premium is given by a…
Artificial intelligence (AI) systems accelerate medical workflows and improve diagnostic accuracy in healthcare, serving as second-opinion systems. However, the unpredictability of AI errors poses a significant challenge, particularly in…
We consider a class of risk-averse submodular maximization problems (RASM) where the objective is the conditional value-at-risk (CVaR) of a random nondecreasing submodular function at a given risk level. We propose valid inequalities and an…
AI systems are often introduced with high expectations, yet many fail to deliver, resulting in unintended harm and missed opportunities for benefit. We frequently observe significant "AI Mismatches", where the system's actual performance…
Advanced AI systems offer substantial benefits but also introduce risks. In 2025, AI-enabled cyber offense has emerged as a concrete example. This technical report applies a quantitative risk modeling methodology (described in full in a…
The rapid development of artificial intelligence methods contributes to their wide applications for forecasting various financial risks in recent years. This study introduces a novel explainable case-based reasoning (CBR) approach without a…
This paper proposes a safety analysis method that facilitates a tunable balance between the worst-case and risk-neutral perspectives. First, we define a risk-sensitive safe set to specify the degree of safety attained by a stochastic…
Artificial Intelligence (AI) is progressing rapidly, and companies are shifting their focus to developing generalist AI systems that can autonomously act and pursue goals. Increases in capabilities and autonomy may soon massively amplify…
Artificial Intelligence (AI) technology epitomizes the complex challenges posed by human-made artifacts, particularly those widely integrated into society and exerting significant influence, highlighting potential benefits and their…
The global financial crisis of 2007-2009 highlighted the crucial role systemic risk plays in ensuring stability of financial markets. Accurate assessment of systemic risk would enable regulators to introduce suitable policies to mitigate…
Brought into the public discourse through investigative work by journalists and scholars, awareness of algorithmic harms is at an all-time high. An increasing amount of research has been conducted under the banner of enhancing responsible…
Embodied AI systems, comprising AI models and physical plants, are increasingly prevalent across various applications. Due to the rarity of system failures, ensuring their safety in complex operating environments remains a major challenge,…
Several variants of reweighted risk functionals, such as focal loss, inverse focal loss, and the Area Under the Risk Coverage Curve (AURC), have been proposed for improving model calibration; yet their theoretical connections to calibration…
The implementation of agentic AI systems has the potential of providing more helpful AI systems in a variety of applications. These systems work autonomously towards a defined goal with reduced external control. Despite their potential, one…