Hierarchical Risk Parity (HRP) is an advanced investment portfolio optimization framework developed in 2016 by Marcos López de Prado at Guggenheim Partners and Cornell University. HRP is a probabilistic graph-based alternative to the prevailing mean-variance optimization (MVO) framework developed by Harry Markowitz in 1952, and for which he received the Nobel Prize in economic sciences. HRP algorithms apply discrete mathematics and machine learning techniques to create diversified and robust investment portfolios that outperform MVO methods out-of-sample. HRP aims to address the limitations of traditional portfolio construction methods, particularly when dealing with highly correlated assets. Following its publication, HRP has been implemented in numerous open-source libraries, and received multiple extensions. == Key features == HRP portfolios have been proposed as a robust alternative to traditional quadratic optimization methods, including the Critical Line Algorithm (CLA) of Markowitz. HRP addresses three central issues commonly associated with quadratic optimizers: numerical instability, excessive concentration in a small number of assets, and poor out-of-sample performance. HRP leverages techniques from graph theory and machine learning to construct diversified portfolios using only the information embedded in the covariance matrix. Unlike quadratic programming methods, HRP does not require the covariance matrix to be invertible. Consequently, HRP remains applicable even in cases where the covariance matrix is ill-conditioned or singular—conditions under which standard optimizers fail. Monte Carlo simulations indicate that HRP achieves lower out-of-sample variance than CLA, despite the fact that minimizing variance is the explicit optimization objective of CLA. Furthermore, HRP portfolios exhibit lower realized risk compared to those generated by traditional risk parity methodologies. Empirical backtests have demonstrated that HRP would have historically outperformed conventional portfolio construction techniques. Algorithms within the HRP framework are characterized by the following features: Machine Learning Approach: HRP employs hierarchical clustering, a machine learning technique, to group similar assets based on their correlations. This allows the algorithm to identify the underlying hierarchical structure of the portfolio, and avoid that errors spread through the entire network. Risk-Based Allocation: The algorithm allocates capital based on risk, ensuring that assets only compete with similar assets for representation in the portfolio. This approach leads to better diversification across different risk sources, while avoiding the instability associated with noisy returns estimates. Covariance Matrix Handling: Unlike traditional methods like Mean-Variance Optimization, HRP does not require inverting the covariance matrix. This makes it more stable and applicable to portfolios with a large number of assets, particularly when the covariance matrix's condition number is high. == The problem: Markowitz's Curse == Portfolio construction is perhaps the most recurrent financial problem. On a daily basis, investment managers must build portfolios that incorporate their views and forecasts on risks and returns. Despite the theoretical elegance of Markowitz's mean-variance framework, its practical implementation is hindered by several limitations that undermine the reliability of solutions derived from the Critical Line Algorithm (CLA). A principal concern is the high sensitivity of optimal portfolios to small perturbations in expected returns: even minor forecasting errors can result in significantly different allocations (Michaud, 1998). Given the inherent difficulty of producing accurate return forecasts, numerous researchers have advocated for approaches that forgo expected returns entirely and instead rely solely on the covariance structure of asset returns. This has given rise to risk-based allocation methods, among which risk parity is a widely cited example (Jurczenko, 2015). While eliminating return forecasts mitigates some instability, it does not eliminate it. Quadratic programming techniques employed in portfolio optimization require the inversion of a positive-definite covariance matrix, meaning all eigenvalues must be strictly positive. When the matrix is numerically ill-conditioned—that is, when the ratio of its largest to smallest eigenvalue (its condition number) is large—matrix inversion becomes unreliable and prone to significant numerical errors (Bailey and López de Prado, 2012). The condition number of a covariance, correlation, or any symmetric (and thus diagonalizable) matrix is defined as the absolute value of the ratio between its largest and smallest eigenvalues in modulus. The figure on the right presents the sorted eigenvalues of several correlation matrices; the condition number is represented by the ratio of the first to last eigenvalues in each sequence. A diagonal correlation matrix, which is equal to its own inverse, exhibits the minimum possible condition number. As the number of correlated (or multicollinear) assets in a portfolio increases, the condition number rises. At high levels, this leads to severe numerical instability, whereby slight modifications in any matrix entry may result in drastically different inverses. This phenomenon, often referred to as Markowitz’s curse, encapsulates the paradox wherein increased correlation among assets heightens the theoretical need for diversification, yet simultaneously increases the likelihood of unstable optimization outcomes. Consequently, the potential benefits of diversification are frequently overshadowed by estimation errors. These problems are exacerbated as the dimensionality of the covariance matrix increases. The estimation of each covariance term consumes degrees of freedom, and in general, a minimum of 1 2 N ( N + 1 ) {\displaystyle {\frac {1}{2}}N(N+1)} independent and identically distributed (IID) observations is required to estimate a non-singular covariance matrix of dimension N {\displaystyle N} . For example, constructing an invertible covariance matrix of dimension 50 necessitates at least five years of daily IID observations. However, empirical evidence suggests that the correlation structure of financial assets is highly unstable over such extended periods. These difficulties are highlighted by the observation that even naïve allocation strategies—such as equally weighted portfolios—have frequently outperformed both mean-variance and risk-based optimizations in out-of-sample tests (De Miguel et al., 2009). == The solution: Hierarchical Risk Parity == The HRP algorithm addresses Markowitz's curse in three steps: Hierarchical Clustering: Assets are grouped into clusters based on their correlations, forming a hierarchical tree structure. Quasi-Diagonalization: The correlation matrix is reordered based on the clustering results, revealing a block diagonal structure. Recursive Bisection: Weights are assigned to assets through a top-down approach, splitting the portfolio into smaller sub-portfolios and allocating capital based on inverse variance. === Step 1: Hierarchical clustering === Given a T × N {\displaystyle T\times N} matrix of asset returns X {\displaystyle X} , where each column represents a time series of returns for one of N {\displaystyle N} assets over T {\displaystyle T} time periods, a hierarchical clustering process can be used to construct a tree-based representation of asset relationships. First, we compute the N × N {\displaystyle N\times N} correlation matrix ρ = ρ i , j i , j = 1 . . . N {\displaystyle \rho ={\rho _{i,j}}\;{i,j=1\;...\;N}} , where ρ i , j = c o r r ( X i , X j ) {\displaystyle \rho _{i,j}=\mathrm {corr} (X_{i},X_{j})} . From this, a pairwise distance matrix D = d i , j {\displaystyle D={d_{i,j}}} is defined using the transformation: d i , j = 1 2 ( 1 − ρ i , j ) {\displaystyle d_{i,j}={\sqrt {{\frac {1}{2}}(1-\rho _{i,j})}}} This distance function defines a proper metric space, satisfying non-negativity, identity of indiscernibles, symmetry, and the triangle inequality. Next, a secondary distance matrix D ~ = d ~ i , j {\displaystyle {\tilde {D}}={{\tilde {d}}_{i,j}}} is computed, where each entry measures the Euclidean distance between the distance profiles of two assets: d ~ i , j = ∑ n = 1 N ( d n , i − d n , j ) 2 {\displaystyle {\tilde {d}}_{i,j}={\sqrt {\sum _{n=1}^{N}(d_{n,i}-d_{n,j})^{2}}}} While d i , j {\displaystyle d_{i,j}} reflects correlation-based proximity between two assets, d ~ i , j {\displaystyle {\tilde {d}}_{i,j}} quantifies dissimilarity across the entire system, as it depends on all pairwise distances. Hierarchical clustering proceeds by identifying the pair ( i , j ) {\displaystyle (i,j)} with the smallest value of d ~ i , j {\displaystyle {\tilde {d}}_{i,j}} (for i ≠ j {\displaystyle i\neq j} ), and forming a new cluster u [ 1 ] = ( i , j ) {\displaystyle u[1]=(i,j)} .
ViBe
ViBe is a background subtraction algorithm which has been presented at the IEEE ICASSP 2009 conference and was refined in later publications. More precisely, it is a software module for extracting background information from moving images. It has been developed by Oliver Barnich and Marc Van Droogenbroeck of the Montefiore Institute, University of Liège, Belgium. ViBe is patented: the patent covers various aspects such as stochastic replacement, spatial diffusion, and non-chronological handling. ViBe is written in the programming language C, and has been implemented on CPU, GPU and FPGA. == Technical description == Source: === Pixel model and classification process === Many advanced techniques are used to provide an estimate of the temporal probability density function (pdf) of a pixel x. ViBe's approach is different, as it imposes the influence of a value in the polychromatic space to be limited to the local neighborhood. In practice, ViBe does not estimate the pdf, but uses a set of previously observed sample values as a pixel model. To classify a value pt(x), it is compared to its closest values among the set of samples. === Model update: Sample values lifespan policy === ViBe ensures a smooth exponentially decaying lifespan for the sample values that constitute the pixel models. This makes ViBe able to successfully deal with concomitant events with a single model of a reasonable size for each pixel. This is achieved by choosing, randomly, which sample to replace when updating a pixel model. Once the sample to be discarded has been chosen, the new value replaces the discarded sample. The pixel model that would result from the update of a given pixel model with a given pixel sample cannot be predicted since the value to be discarded is chosen at random. === Model update: Spatial Consistency === To ensure the spatial consistency of the whole image model and handle practical situations such as small camera movements or slowly evolving background objects, ViBe uses a technique similar to that developed for the updating process in which it chooses at random and update a pixel model in the neighborhood of the current pixel. By denoting NG(x) and p(x) respectively the spatial neighborhood of a pixel x and its value, and assuming that it was decided to update the set of samples of x by inserting p(x), then ViBe also use this value p(x) to update the set of samples of one of the pixels in the neighborhood NG(x), chosen at random. As a result, ViBe is able to produce spatially coherent results directly without the use of any post-processing method. === Model initialization === Although the model could easily recover from any type of initialization, for example by choosing a set of random values, it is convenient to get an accurate background estimate as soon as possible. Ideally a segmentation algorithm would like to be able to segment the video sequences starting from the second frame, the first frame being used to initialize the model. Since no temporal information is available prior to the second frame, ViBe populates the pixel models with values found in the spatial neighborhood of each pixel; more precisely, it initializes the background model with values taken randomly in each pixel neighborhood of the first frame. The background estimate is therefore valid starting from the second frame of a video sequence.
Legal expert system
A legal expert system is a domain-specific expert system that uses artificial intelligence to emulate the decision-making abilities of a human expert in the field of law. Legal expert systems employ a rule base or knowledge base and an inference engine to accumulate, reference and produce expert knowledge on specific subjects within the legal domain. == Purpose == It has been suggested that legal expert systems could help to manage the rapid expansion of legal information and decisions that began to intensify in the late 1960s. Many of the first legal expert systems were created in the 1970s and 1980s. Lawyers were originally identified as primary target users of legal expert systems. Potential motivations for this work included: quicker delivery of legal advice; reduced time spent in repetitive, labour-intensive legal tasks; development of knowledge management techniques that were not dependent on staff; reduced overhead and labour costs and higher profitability for law firms; and reduced fees for clients. Some early development work was oriented toward the creation of automated judges. One of the first use cases was the encoding of the British Nationality Act at Imperial College carried out under the supervision of Marek Sergot and Robert Kowalski. Lance Elliot wrote: "The British Nationality Act was passed in 1981 and shortly thereafter was used as a means of showcasing the efficacy of using Artificial Intelligence (AI) techniques and technologies, doing so to explore how the at-the-time newly enacted statutory law might be encoded into a computerized logic-based formalization." The authors’ seminal article, "The British Nationality Act as a Logic Program," published in 1986 in the Communications of the ACM journal, is one of the first and best-known works in computational law, and one of the most widely cited papers in the field. In 2021, the Inaugural CodeX Prize was awarded to Robert Kowalski, Fariba Sadri, and Marek Sergot in acknowledgment of their groundbreaking work on the application of logic programming to the formalization and analysis of the British Nationality Act. Later work on legal expert systems has identified potential benefits to non-lawyers as a means to increase access to legal knowledge. Legal expert systems can also support administrative processes, facilitate decision-making processes, automate rule-based analyses, and exchange information directly with citizen-users. == Types == === Architectural variations === Rule-based expert systems rely on a model of deductive reasoning that utilizes "If A, then B" rules. In a rule-based legal expert system, information is represented in the form of deductive rules within the knowledge base. In rule-based legal expert systems, logic programming has historically been applied to automate complex compliance paperwork. A notable early example designed for high-volume regulatory filings was the 1999 Intelligent Filing Manager (INTELLIFM), which utilized Prolog rules as its core inference engine to automate the generation, publishing, and population of structured forms via distributed COM interfaces. Case-based reasoning models, which store and manipulate examples or cases, hold the potential to emulate an analogical reasoning process thought to be well-suited for the legal domain. This model effectively draws on known experiences our outcomes for similar problems. A neural net relies on a computer model that mimics that structure of a human brain, and operates in a very similar way to the case-based reasoning model. This expert system model is capable of recognizing and classifying patterns within the realm of legal knowledge and dealing with imprecise inputs. Fuzzy logic models attempt to create 'fuzzy' concepts or objects that can then be converted into quantitative terms or rules that are indexed and retrieved by the system. In the legal domain, fuzzy logic can be used for rule-based and case-based reasoning models. === Theoretical variations === Some legal expert system architects have adopted a very practical approach, employing scientific modes of reasoning within a given set of rules or cases. Others have opted for a broader philosophical approach inspired by jurisprudential reasoning modes emanating from established legal theoreticians. === Functional variations === Some legal expert systems aim to arrive at a particular conclusion in law, while others are designed to predict a particular outcome. An example of a predictive system is one that predicts the outcome of judicial decisions, the value of a case, or the outcome of litigation. == Reception == Many forms of legal expert systems have become widely used and accepted by both the legal community and the users of legal services. == Challenges == === Domain-related problems === The inherent complexity of law as a discipline raises immediate challenges for legal expert system knowledge engineers. Legal matters often involve interrelated facts and issues, which further compound the complexity. Factual uncertainty may also arise when there are disputed versions of factual representations that must be input into an expert system to begin the reasoning process. === Computerized problem solving === The limitations of most computerized problem solving techniques inhibit the success of many expert systems in the legal domain. Expert systems typically rely on deductive reasoning models that have difficulty according degrees of weight to certain principles of law or importance to previously decided cases that may or may not influence a decision in an immediate case or context. === Representation of legal knowledge === Expert legal knowledge can be difficult to represent or formalize within the structure of an expert system. For knowledge engineers, challenges include: Open texture: Law is rarely applied in an exact way to specific facts, and exact outcomes are rarely a certainty. Statutes may be interpreted according to different linguistic interpretations, reliance on precedent cases or other contextual factors including a particular judge's conception of fairness. The balancing of reasons: Many arguments involve considerations or reasons that are not easily represented in a logical way. For instance, many constitutional legal issues are said to balance independently well-established considerations for state interests against individual rights. Such balancing may draw on extra-legal considerations that would be difficult to represent logically in an expert system. Indeterminacy of legal reasoning: In the adversarial arena of law, it is common to have two strong arguments on a single point. Determining the 'right' answer may depend on a majority vote among expert judges, as in the case of an appeal. === Time and cost effectiveness === Creating a functioning expert system requires significant investments in software architecture, subject matter expertise and knowledge engineering. Faced with these challenges, many system architects restrict the domain in terms of subject matter and jurisdiction. The consequence of this approach is the creation of narrowly focused and geographically restricted legal expert systems that are difficult to justify on a cost-benefit basis. Current applications of AI in the legal field utilize machines to review documents, particularly when a high level of completeness and confidence in the quality of document analysis is depended upon, such as in instances of litigation and where due diligence play a role. Among the numerically most quantifiable advantages of AI in the legal field are the time and money saving impact by freeing lawyers from having to spend inordinate amounts of their valuable time on routine tasks, aiding in setting free lawyers’ creative energy by reducing stress. This in turn increases the rate of case load reduction by accomplishing better results in less time, which unlocks potential additional revenue per unit of time spend on a case. The cost of setting up and maintaining AI systems in law is more than offset by the attained savings through increased efficacy; unbalanced cost can be assigned to clients. === Lack of correctness in results or decisions === Legal expert systems may lead non-expert users to incorrect or inaccurate results and decisions. This problem could be compounded by the fact that users may rely heavily on the correctness or trustworthiness of results or decisions generated by these systems. == Examples == ASHSD-II is a hybrid legal expert system that blends rule-based and case-based reasoning models in the area of matrimonial property disputes under English law. CHIRON is a hybrid legal expert system that blends rule-based and case-based reasoning models to support tax planning activities under United States tax law and codes. JUDGE is a rule-based legal expert system that deals with sentencing in the criminal legal domain for offences relating to murder, assault and manslaughter. Legislate is a knowledge graph powered contract management platform whi
Pop music automation
Pop music automation is a field of study among musicians and computer scientists with a goal of producing successful pop music algorithmically. It is often based on the premise that pop music is especially formulaic, unchanging, and easy to compose. The idea of automating pop music composition is related to many ideas in algorithmic music, artificial intelligence (AI) and computational creativity. == History of automation in music == Algorithms (or, at the very least, formal sets of rules) have been used to compose music for centuries; the procedures used to plot voice-leading in counterpoint, for example, can often be reduced to algorithmic determinant. Now the term is usually reserved, however, for the use of formal procedures to make music without human intervention. Classical music automation software exists that generates music in the style of Mozart and Bach and jazz. Most notably, David Cope has written a software system called "Experiments in Musical Intelligence" (or "EMI") that is capable of analyzing and generalizing from existing music by a human composer to generate novel musical compositions in the same style. EMI's output is convincing enough to persuade human listeners that its music is human-generated to a high level of competence. Creativity research in jazz has focused on the process of improvisation and the cognitive demands that this places on a musical agent: reasoning about time, remembering and conceptualizing what has already been played, and planning ahead for what might be played next. Inevitably associated with pop music automation is pop music analysis. Projects in pop music automation may include, but are not limited to, ideas in melody creation and song development, vocal generation or improvement, automatic accompaniment and lyric composition. == Automatic accompaniment == Some systems exist that automatically choose chords to accompany a vocal melody in real-time. A user with no musical experience can create a song with instrumental accompaniment just by singing into a microphone. An example is a Microsoft Research project called Songsmith, which trains a Hidden Markov model using a music database and uses that model to select chords for new melodies. == Melody generation == Automatic melody generation is often done with a Markov chain, the states of the system become note or pitch values, and a probability vector for each note is constructed, completing a transition probability matrix (see below). An algorithm is constructed to produce an output note values based on the transition matrix weightings, which could be MIDI note values, frequency (Hz), or any other desirable metric. A second-order Markov chain can be introduced by considering the current state and also the previous state, as indicated in the second table. Higher, nth-order chains tend to "group" particular notes together, while 'breaking off' into other patterns and sequences occasionally. These higher-order chains tend to generate results with a sense of phrasal structure, rather than the 'aimless wandering' produced by a first-order system. == Lyric composition == Automated lyric creating software may take forms such as: Selecting words according to their rhythm The Tra-la-Lyrics system produces song lyrics, in Portuguese, for a given melody. This not only involves matching each word syllable with a note in the melody, but also matching the word's stress with the strong beats of the melody. Parsing existing pop music (e.g. for content or word choice) This involves natural language processing. Pablo Gervás has developed a noteworthy system called ASPERA that employs a case-based reasoning (CBR) approach to generating poetic formulations of a given input text via a composition of poetic fragments that are retrieved from a case-base of existing poems. Each poem fragment in the ASPERA case-base is annotated with a prose string that expresses the meaning of the fragment, and this prose string is used as the retrieval key for each fragment. Metrical rules are then used to combine these fragments into a well-formed poetic structure. Automatic analogy or story creation Programs like TALE-SPIN and The MINSTREL system represent a complex elaboration of this basis approach, distinguishing a range of character-level goals in the story from a range of author-level goals for the story. Systems like Bringsjord's BRUTUS can create stories with complex interpersonal themes like betrayal. On-line metaphor generation systems like 'Sardonicus' or 'Aristotle' can suggest lexical metaphors for a given descriptive goal (e.g., to describe a supermodel as skinny, the source terms “pencil”, “whip”, “whippet”, “rope”, “stick-insect” and “snake” are suggested). Free association of grouped words Using a language database (such as wordnet) one can create musings on a subject that may be weak grammatically but are still sensical. See such projects as the Flowerewolf automatic poetry generator or the Dada engine. == Software == === More or less free === BreathCube by xoxos. Simple lyrical vocal content is generated with simple music. CubeBreath by xoxos. Audio input is vocoded in tune with the music. Midi Internet Algorithmic Composition infno, infinite generator of electronic dance music and synth-pop. Algorithmic Trap, trap beat generator. === Commercial === Band in a box generates any element, potentially creates whole new songs from scratch. Musical Palette - Melody Composing Tool SongSmith: Automatic accompaniment for vocal melodies Ludwig 3.0 automatic accompaniment, writes arrangements for given instruments, plays its own songs for an infinitely long time. Automated Composing System creates music in many different styles
Data analysis for fraud detection
Fraud represents a significant problem for governments and businesses and specialized analysis techniques for discovering fraud using them are required. Some of these methods include knowledge discovery in databases (KDD), data mining, machine learning and statistics. They offer applicable and successful solutions in different areas of electronic fraud crimes. In general, the primary reason to use data analytics techniques is to tackle fraud since many internal control systems have serious weaknesses. For example, the currently prevailing approach employed by many law enforcement agencies to detect companies involved in potential cases of fraud consists in receiving circumstantial evidence or complaints from whistleblowers. As a result, a large number of fraud cases remain undetected and unprosecuted. In order to effectively test, detect, validate, correct error and monitor control systems against fraudulent activities, businesses entities and organizations rely on specialized data analytics techniques such as data mining, data matching, the sounds like function, regression analysis, clustering analysis, and gap analysis. Techniques used for fraud detection fall into two primary classes: statistical techniques and artificial intelligence. == Statistical techniques == Examples of statistical data analysis techniques are: Data preprocessing techniques for detection, validation, error correction, and filling up of missing or incorrect data. Calculation of various statistical parameters such as averages, quantiles, performance metrics, probability distributions, and so on. For example, the averages may include average length of call, average number of calls per month and average delays in bill payment. Models and probability distributions of various business activities either in terms of various parameters or probability distributions. Computing user profiles. Time-series analysis of time-dependent data. Clustering and classification to find patterns and associations among groups of data. Data matching Data matching is used to compare two sets of collected data. The process can be performed based on algorithms or programmed loops. Trying to match sets of data against each other or comparing complex data types. Data matching is used to remove duplicate records and identify links between two data sets for marketing, security or other uses. Sounds like Function is used to find values that sound similar. The Phonetic similarity is one way to locate possible duplicate values, or inconsistent spelling in manually entered data. The ‘sounds like’ function converts the comparison strings to four-character American Soundex codes, which are based on the first letter, and the first three consonants after the first letter, in each string. Regression analysis allows you to examine the relationship between two or more variables of interest. Regression analysis estimates relationships between independent variables and a dependent variable. This method can be used to help understand and identify relationships among variables and predict actual results. Gap analysis is used to determine whether business requirements are being met, if not, what are the steps that should be taken to meet successfully. Matching algorithms to detect anomalies in the behavior of transactions or users as compared to previously known models and profiles. Techniques are also needed to eliminate false alarms, estimate risks, and predict future of current transactions or users. Some forensic accountants specialize in forensic analytics which is the procurement and analysis of electronic data to reconstruct, detect, or otherwise support a claim of financial fraud. The main steps in forensic analytics are data collection, data preparation, data analysis, and reporting. For example, forensic analytics may be used to review an employee's purchasing card activity to assess whether any of the purchases were diverted or divertible for personal use. == Artificial intelligence == Fraud detection is a knowledge-intensive activity. The main AI techniques used for fraud detection include: Data mining to classify, cluster, and segment the data and automatically find associations and rules in the data that may signify interesting patterns, including those related to fraud. Expert systems to encode expertise for detecting fraud in the form of rules. Pattern recognition to detect approximate classes, clusters, or patterns of suspicious behavior either automatically (unsupervised) or to match given inputs. Machine learning techniques to automatically identify characteristics of fraud. Neural nets to independently generate classification, clustering, generalization, and forecasting that can then be compared against conclusions raised in internal audits or formal financial documents such as 10-Q. Other techniques such as link analysis, Bayesian networks, decision theory, and sequence matching are also used for fraud detection. A new and novel technique called System properties approach has also been employed where ever rank data is available. Statistical analysis of research data is the most comprehensive method for determining if data fraud exists. Data fraud as defined by the Office of Research Integrity (ORI) includes fabrication, falsification and plagiarism. == Machine learning and data mining == Early data analysis techniques were oriented toward extracting quantitative and statistical data characteristics. These techniques facilitate useful data interpretations and can help to get better insights into the processes behind the data. Although the traditional data analysis techniques can indirectly lead us to knowledge, it is still created by human analysts. To go beyond, a data analysis system has to be equipped with a substantial amount of background knowledge, and be able to perform reasoning tasks involving that knowledge and the data provided. In effort to meet this goal, researchers have turned to ideas from the machine learning field. This is a natural source of ideas, since the machine learning task can be described as turning background knowledge and examples (input) into knowledge (output). If data mining results in discovering meaningful patterns, data turns into information. Information or patterns that are novel, valid and potentially useful are not merely information, but knowledge. One speaks of discovering knowledge, before hidden in the huge amount of data, but now revealed. The machine learning and artificial intelligence solutions may be classified into two categories: 'supervised' and 'unsupervised' learning. These methods seek for accounts, customers, suppliers, etc. that behave 'unusually' in order to output suspicion scores, rules or visual anomalies, depending on the method. Whether supervised or unsupervised methods are used, note that the output gives us only an indication of fraud likelihood. No stand alone statistical analysis can assure that a particular object is a fraudulent one, but they can identify them with very high degrees of accuracy. As a result, effective collaboration between machine learning model and human analysts is vital to the success of fraud detection applications. === Supervised learning === In supervised learning, a random sub-sample of all records is taken and manually classified as either 'fraudulent' or 'non-fraudulent' (task can be decomposed on more classes to meet algorithm requirements). Relatively rare events such as fraud may need to be over sampled to get a big enough sample size. These manually classified records are then used to train a supervised machine learning algorithm. After building a model using this training data, the algorithm should be able to classify new records as either fraudulent or non-fraudulent. Supervised neural networks, fuzzy neural nets, and combinations of neural nets and rules, have been extensively explored and used for detecting fraud in mobile phone networks and financial statement fraud. Bayesian learning neural network is implemented for credit card fraud detection, telecommunications fraud, auto claim fraud detection, and medical insurance fraud. Hybrid knowledge/statistical-based systems, where expert knowledge is integrated with statistical power, use a series of data mining techniques for the purpose of detecting cellular clone fraud. Specifically, a rule-learning program to uncover indicators of fraudulent behaviour from a large database of customer transactions is implemented. Cahill et al. (2000) design a fraud signature, based on data of fraudulent calls, to detect telecommunications fraud. For scoring a call for fraud its probability under the account signature is compared to its probability under a fraud signature. The fraud signature is updated sequentially, enabling event-driven fraud detection. Link analysis comprehends a different approach. It relates known fraudsters to other individuals, using record linkage and social network methods. This type of detection is only able to detect fra
Public computer
A public computer (or public access computer) is any of various computers available in public areas. Some places where public computers may be available are libraries, schools, or dedicated facilities run by government. Public computers share similar hardware and software components to personal computers, however, the role and function of a public access computer is entirely different. A public access computer is used by many different untrusted individuals throughout the course of the day. The computer must be locked down and secure against both intentional and unintentional abuse. Users typically do not have authority to install software or change settings. A personal computer, in contrast, is typically used by a single responsible user, who can customize the machine's behavior to their preferences. Public access computers are often provided with tools such as a PC reservation system to regulate access. The world's first public access computer center was the Marin Computer Center in California, co-founded by David and Annie Fox in 1977. == Kiosks == A kiosk is a special type of public computer using software and hardware modifications to provide services only about the place the kiosk is in. For example, a movie ticket kiosk can be found at a movie theater. These kiosks are usually in a secure browser with zero access to the desktop. Many of these kiosks may run Linux, however, ATMs, a kiosk designed for depositing money, often run Windows XP. == Public computers in the United States == === Library computers === In the United States and Canada, almost all public libraries have computers available for the use of patrons, though some libraries will impose a time limit on users to ensure others will get a turn and keep the library less busy. Users are often allowed to print documents that they have created using these computers, though sometimes for a small fee. ==== Privacy ==== Privacy is an important part of the public library institution, since the libraries entitle the public to intellectual freedom. Use of any computer or network may create records of users' activities that can jeopardize their privacy. It is possible for a patron to jeopardize their privacy if they do not delete cache, clear cookies, or documents from the public computer. In order for a member of the public to remain private on a computer, the American Library Association (ALA) has guidelines. These give patrons an idea of the right way to keep using public library computers. In their provision of services to library users, librarians have an ethical responsibility, expressed in the ALA Code of Ethics, to preserve users' right to privacy. A librarian is also responsible for giving users an understanding of private patron use and access. Libraries must ensure that users have the following rights when browsing on public computers: the computer automatically will clear a users history; libraries should display privacy screens so users do not see another patron's screen; updating software for effective safety measures; restoration data software to clear documents that users may have left on their computers and to combat possible malware; security practices; and making users aware of any possible monitoring of their browsing activities. Users can also view the Library Privacy Checklist for Public Access Computers and Networks to better understand what libraries strive for when protecting privacy. === School computers === The U.S. government has given money to many school boards to purchase computers for educational applications. Schools may have multiple computer labs, which contain these computers for students to use. There is usually Internet access on these machines, but some schools will put up a blocking service to limit the websites that students are able to access to only include educational resources, such as Google. In addition to controlling the content students are viewing, putting up these blocks can also help to keep the computers safe by preventing students from downloading malware and other threats. However, the effectiveness of such content filtering systems is questionable since it can easily be circumvented by using proxy websites, Virtual Private Networks, and for some weak security systems, merely knowing the IP address of the intended website is enough to bypass the filter. School computers often have advanced operating system security to prevent tech-savvy students from inflicting damage (i.e. the Windows Registry Editor and Task Manager, etc.) are disabled on Microsoft Windows machines. Schools with very advanced tech services may also install a locked down BIOS/firmware or make kernel-level changes to the operating system, precluding the possibility of unauthorized activity.
Niceaunties
Niceaunties is the pseudonym of a Singapore-based artist and designer whose work incorporates generative artificial intelligence, video, and digital installation. Her practice centers around the figure of the "auntie", a common term for older women in Southeast Asian contexts, and explores themes such as aging, care, domesticity, and gender roles. Her work has been featured in exhibitions and media platforms including TED, Christie's Art + Tech, Expanded.Art, and publications such as The Guardian, The Straits Times. == Early life and career == Niceaunties was born in 1981 in Singapore. She attributes her inspiration for "auntie culture" to the matriarchal environment and older women of her household, including her grandmother, while growing up. She is also an architectural designer with Spark Architect. The Niceaunties project began in 2023 after she encountered AI-generated images in her work as an architect. It draws inspiration from women in the artist's family and broader Southeast Asian cultural dynamics. Her work often features AI-generated visuals created with tools such as DALL-E, Krea, RunwayML, and SORA. Her imagery and narratives center on the fictional "Auntieverse", which features older women in imagined settings involving community, ecology, and labor. Her notable works include 'Auntlantis', a five-part video series imagining older women engaged in ocean clean-up and collective ritual, and 'Goddess,' a video created with Sora, featuring a character who gradually forgets her divine identity through years of domestic labor. == Exhibitions == 2024 – Expanded.Art, Berlin – Auntiedote solo exhibition 2024 – TED (conference), Vancouver – Speaker and screening 2024 – Victoria and Albert Museum, London – Digital Art Weekend 2024 – Louisiana Museum of Modern Art, Denmark – Ocean exhibition 2025 – Christie's Augmented Intelligence Auction, New York == Reception == In 2024, Niceaunties gave a TED Talk titled The Weird and Wonderful Art of Niceaunties. Journalist Rebecca Ratcliffe, writing for The Guardian, described her work as combining AI with "the surreal and the political," noting her focus on older women as central characters. Her work has also received criticism for being reliant on generative AI, which many feel exploits and steals from traditional artists.