The paper investigates when adding a second AI component—an AI supervisor—benefits network‑fraud decision making. Using a role‑aware Decider‑Supervisor framework with blockchain auditability, the authors evaluate four configurations combining centralized ML, federated meta‑models, and large language model variants. Results show that only specific setups (e.g., DS‑4 Base in extreme high‑fraud scenarios) reduce errors, while most supervised configurations either underperform or add operational burden.
arXiv:2607. 09259v1 Announce Type: cross Abstract: Telecom fraud-control studies often stop at detector-level classification, but deployment use requires request-level policy resolution, lifecycle traceability, and auditability.
arXiv:2608. 08577v1 Announce Type: new Abstract: Fraud operations must allocate events among automatic approval, analyst review, and automatic blocking even though the labels needed to evaluate these actions are selective and delayed.
The paper introduces Governance-Aware Federated Learning (GAFL), a framework that enhances traditional federated learning with independent governance verification, fairness and explainability assessment, anomaly detection, policy enforcement, and tamper‑evident audit logging. In a cross‑silo prototype with 10 participants, GAFL successfully identified all falsified‑evidence participants and intervened on affected participants across various threat scenarios, achieving macro‑F1 scores between 0.7520 and 0.7733. The added governance processing time per round was 173.67 ± 26.94 ms, compared to 3.82 ± 0.79 ms for standard FedAvg, highlighting a trade‑off between fairness policy enforcement and utility.
DeFiRank is a federated learning-based pairwise ranking framework designed to improve governance in decentralized financial networks. It allows multiple institutions to collaboratively train a ranking model without sharing private transaction data, capturing network-wide behavioural patterns such as diversity of counterparties, multi-application usage, and transaction frequency. Evaluated on a real-world blockchain dataset, DeFiRank achieves ranking performance close to a centralized baseline while preserving data privacy and maintaining ranking stability, enabling reliable provider promotion and demotion decisions.
The paper "Governing at Machine Speed: An Adaptive Intelligence Architecture for Real-Time AI Policy Enforcement" highlights a gap in enterprise AI governance, where 78% of organizations lack auditable evidence of policy enforcement. It introduces AGIL, a five-layer adaptive governance architecture that uses machine learning for real-time detection, risk classification, sub-100ms policy enforcement, continuous attestation, and policy evolution. The authors argue that the failure is organizational and architectural, not technical, and call for future empirical validation of AGIL.
The paper introduces a protocol for auditing and composing reinforcement‑learning policies using discrete behavioral rules, defining auditability through six testable predicates such as trace integrity and rule coverage. Experiments show that overlapping rule sets do not guarantee behavioral agreement, and that rule‑based fusion often fails to outperform value‑based composition, highlighting limitations in current description layers. The authors provide an evidence‑bounded audit framework and outline future directions for more robust skill composition.
arXiv:2608. 11344v1 Announce Type: cross Abstract: Financial institutions are delegating consequential decisions to agentic AI systems that decompose goals, coordinate models and tools, and act with little oversight.
The paper reviews four studies that combine blockchain and AI to secure data sharing, model integrity, and autonomous decision-making in distributed systems. It highlights how blockchain’s immutability, decentralized consensus, and verifiable provenance can address trust gaps in training data, real‑time monitoring, and automated code remediation. The authors propose a layered architecture integrating hardened models, blockchain‑anchored provenance, AI anomaly detection, and smart‑contract‑governed multi‑agent remediation, and outline open challenges in scalability, privacy‑transparency trade‑offs, and governance.
FraudBench is a new benchmark that tests policy‑grounded banking conversational agents against adaptive fraud scenarios. It uses a dual‑control framework and a 698‑document internal policy corpus, presenting 150 adversarial scenarios (107 public, 43 held‑out) that require agents to manage mutable account state and tool access while preventing identity, authorization, and trust manipulation. Preliminary results on four agents show attack‑security rates between 49% and 65%, highlighting weaknesses in money‑mule and first‑party fraud detection.
arXiv:2609.37457v1 Announce Type: new Abstract: Enterprise artificial-intelligence agents increasingly call tools, modify infrastructure, and process protected data, creating a need to separate actio...
arXiv:2607. 08651v1 Announce Type: new Abstract: Decentralized federated learning (DFL) removes the central server by letting nodes exchange model updates through peer-to-peer gossip, but existing gossip-based methods often lack provenance finality and resilience to Byzantine or lazy participants.
The paper introduces a post‑training framework that teaches a 4B‑parameter language model to exercise task‑conditioned authority in executable terminal and Model Context Protocol (MCP) environments. By auditing each action across six risk dimensions with deterministic verifiers and optimizing for task‑specific excess‑privilege values, the authors achieve 98.48% safe success and reduce excess‑authority errors from 4.56% to 0.79% on held‑out tasks. The study also demonstrates capability retention, prompt‑directed improvement, and generalization over a 400‑task continuation test.