arXiv Machine Learning

Incentive Aware AI Regulations: A Credal Characterisation

arXiv:2603. 05175v2 Announce Type: replace Abstract: The rapid proliferation of AI applications has intensified debate on effective regulation of these black-box services.

arXiv Machine Learning
Jun 17

Exposing the Illusion of Fairness: Auditing Vulnerabilities to Distributional Manipulation Attacks

arXiv:2507. 20708v3 Announce Type: replace Abstract: The rapid deployment of AI systems in high-stakes domains, including those classified as high-risk under the The EU AI Act (Regulation (EU) 2024/1689), has intensified the need for reliable compliance auditing.

By Valentin Lafargue, Adriana Laurindo Monteiro, Emmanuelle Claeys, Laurent Risser, Jean-Michel Loubes
arXiv AI
Sep 11

Beyond Training: A Feasibility Taxonomy for Inference-Time AI Governance

The paper "Beyond Training: A Feasibility Taxonomy for Inference-Time AI Governance" presents a taxonomy of twenty inference‑time mechanisms for monitoring, verification, and enforcement, each evaluated on a four‑point readiness scale using evidence from four vendors. It applies this taxonomy to a two‑dimensional adversary model and maps the mechanisms to four governance scenarios, finding that most mechanisms are commercially available but only adequate against cooperative or low‑to‑medium‑capability users, not high‑capability state‑level deployers. The study also links inference‑stage controls to hardware‑stage mechanisms through a substitution principle and reports a second‑rater reliability of 0.74. whyItMatters":"The work identifies the current gaps and readiness of inference‑time governance tools, highlighting that existing mechanisms are insufficient against powerful adversaries and thus informing future regulatory and technical development."

By Samar Ansari
arXiv AI
Sep 17

PACT: Can Enterprise AI Assistants Be Trusted Under Pressure?

The paper introduces PACT, a benchmark designed to evaluate how well enterprise AI assistants follow compliance rules when faced with various pressures such as persistent users or hurried managers. PACT covers twelve regulated domains and forty-eight realistic multi‑turn scenarios, pairing each rule with a shortcut that violates it and applying different pressures across wording and system‑prompt modes. Using PACT, the authors profile six metrics of compliance and aggregate them into a PACTScore, revealing significant variability among 22 LLM models and that even top performers misapply rules 6–10% of the time, with user pressure increasing violations by 65% on average.

By Mika Okamoto, Ansel Kaplan Erol
arXiv AI
Sep 24

Compliant AI Infrastructure for Regulated Finance: A tiered multi-agent framework with DLT audit trails for financial operations in DACH

The paper introduces a compliance-first AI architecture for regulated finance, treating regulation as an orientation layer rather than a rigid rule set. It uses a regulatory intent matrix and a governed policy compiler to translate regulatory requirements into concrete prohibitions, obligations, and runtime budgets, while maintaining proportional committee activation and supervisory oversight. Evidence and decisions are recorded on a permissioned DAG with deterministic timestamps, enabling replay, provenance checks, and clear attribution of failures, and clause-level legal indexing ensures portability across the DACH region and the EU.

By Walter Kurz, Reinhard Magg