Machine learning methods to protect banks from the risks of complex investment products

Artificial Intelligence is frequently touted as a silver bullet to solve complex modeling problems. Among its many applications, it has been investigated as a tool to manage risks of complex investment products—so-called derivative contracts—in the […..

Memorisation: the deep problem of Midjourney, ChatGPT, and friends

If we ask GPT to get us “that poem that compares the loved one to a summer’s day” we want it to produce the actual Shakespeare Sonnet 18, not some confabulation. And it does. It has memorised this part of the training data. This is both sought-after an…