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Deep neural networks have shown great success in prediction quality while reliable and robust uncertainty estimation remains a challenge. Predictive uncertainty supplements model predictions and enables improved functionality of downstream…

Machine Learning · Computer Science 2021-12-02 Johanna Rock , Tiago Azevedo , René de Jong , Daniel Ruiz-Muñoz , Partha Maji

In the global economy, credit companies play a central role in economic development, through their activity as money lenders. This important task comes with some drawbacks, mainly the risk of the debtors not being able to repay the provided…

Machine Learning · Computer Science 2021-01-01 Giorgio Visani , Federico Chesani , Enrico Bagli , Davide Capuzzo , Alessandro Poluzzi

Large Language Models (LLMs) achieve strong performance through extended inference-time deliberation, yet how their reasoning failures arise remains poorly understood. By analyzing model-generated reasoning trajectories, we find that errors…

Artificial Intelligence · Computer Science 2026-04-17 Wei Zhu , Jian Zhang , Lixing Yu , Kun Yue , Zhiwen Tang

Smart manufacturing systems are being deployed at a growing rate because of their ability to interpret a wide variety of sensed information and act on the knowledge gleaned from system observations. In many cases, the principal goal of the…

Machine Learning · Computer Science 2022-06-14 Mustafa Abdallah , Byung-Gun Joung , Wo Jae Lee , Charilaos Mousoulis , John W. Sutherland , Saurabh Bagchi

Masked diffusion language models (MDMs) uniquely support any-order generation, with confidence-based decoding currently serving as the de facto standard inference policy. To optimize for this, recent training schemes attempt to align…

Artificial Intelligence · Computer Science 2026-05-29 Dueun Kim , Albert No

Recently, many works have proposed various financial large language models (FinLLMs) by pre-training from scratch or fine-tuning open-sourced LLMs on financial corpora. However, existing FinLLMs exhibit unsatisfactory performance in…

Computational Engineering, Finance, and Science · Computer Science 2024-05-02 Huan-Yi Su , Ke Wu , Yu-Hao Huang , Wu-Jun Li

Machine Learning (ML) models are increasingly integrated into safety-critical systems, such as autonomous vehicle platooning, to enable real-time decision-making. However, their inherent imperfection introduces a new class of failure:…

Artificial Intelligence · Computer Science 2025-06-10 Razieh Arshadizadeh , Mahmoud Asgari , Zeinab Khosravi , Yiannis Papadopoulos , Koorosh Aslansefat

Machine learning plays an essential role in preventing financial losses in the banking industry. Perhaps the most pertinent prediction task that can result in billions of dollars in losses each year is the assessment of credit risk (i.e.,…

Risk Management · Quantitative Finance 2021-01-01 Jillian M. Clements , Di Xu , Nooshin Yousefi , Dmitry Efimov

Measuring the corporate default risk is broadly important in economics and finance. Quantitative methods have been developed to predictively assess future corporate default probabilities. However, as a more difficult yet crucial problem,…

Applications · Statistics 2018-04-26 Miao Yuan , Cheng Yong Tang , Yili Hong , Jian Yang

Bond prices are a reflection of extremely complex market interactions and policies, making prediction of future prices difficult. This task becomes even more challenging due to the dearth of relevant information, and accuracy is not the…

Statistical Finance · Quantitative Finance 2017-05-04 Swetava Ganguli , Jared Dunnmon

Across engineering and scientific domains, traditional deep learning (TDL) models perform well when training and test data share the same distribution. However, the dynamic nature of real-world data, broadly termed \textit{data shift},…

Machine Learning · Computer Science 2026-01-15 Samuel Myren , Nidhi Parikh , Natalie Klein

Recent years have witnessed impressive robotic manipulation systems driven by advances in imitation learning and generative modeling, such as diffusion- and flow-based approaches. As robot policy performance increases, so does the…

Deep neural networks are powerful tools to detect hidden patterns in data and leverage them to make predictions, but they are not designed to understand uncertainty and estimate reliable probabilities. In particular, they tend to be…

Machine Learning · Statistics 2022-11-10 Bat-Sheva Einbinder , Yaniv Romano , Matteo Sesia , Yanfei Zhou

In an era defined by rapid data evolution, traditional Machine Learning (ML) models often struggle to adapt to dynamic environments. Evolving Machine Learning (EML) has emerged as a pivotal paradigm, enabling continuous learning and…

Traditional machine learning methods have been widely studied in financial innovation. My study focuses on the application of deep learning methods on asset pricing. I investigate various deep learning methods for asset pricing, especially…

Statistical Finance · Quantitative Finance 2022-09-27 Chen Zhang

This study examines credit default prediction by comparing three techniques, namely SMOTE, SMOTE-Tomek, and ADASYN, that are commonly used to address the class imbalance problem in credit default situations. Recognizing that credit default…

Machine Learning · Computer Science 2025-09-25 Obu-Amoah Ampomah , Edmund Agyemang , Kofi Acheampong , Louis Agyekum

Motor bearing fault detection (MBFD) is critical for maintaining the reliability and operational efficiency of industrial machinery. Early detection of bearing faults can prevent system failures, reduce operational downtime, and lower…

Machine Learning · Computer Science 2024-10-22 Khoa Tran , Lam Pham , Vy-Rin Nguyen , Ho-Si-Hung Nguyen

Automated detection of software vulnerabilities is a fundamental problem in software security. Existing program analysis techniques either suffer from high false positives or false negatives. Recent progress in Deep Learning (DL) has…

Software Engineering · Computer Science 2020-09-16 Saikat Chakraborty , Rahul Krishna , Yangruibo Ding , Baishakhi Ray

Reliable confidence estimation is a challenging yet fundamental requirement in many risk-sensitive applications. However, modern deep neural networks are often overconfident for their incorrect predictions, i.e., misclassified samples from…

Computer Vision and Pattern Recognition · Computer Science 2024-03-06 Fei Zhu , Xu-Yao Zhang , Zhen Cheng , Cheng-Lin Liu

We present a large scale benchmark of modern deep learning architectures for a financial time series prediction and position sizing task, with a primary focus on Sharpe ratio optimization. Evaluating linear models, recurrent networks,…

Trading and Market Microstructure · Quantitative Finance 2026-03-03 Adir Saly-Kaufmann , Kieran Wood , Jan Peter-Calliess , Stefan Zohren