AI Art Software

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  • Matchbox Educable Noughts and Crosses Engine

    Matchbox Educable Noughts and Crosses Engine

    The Matchbox Educable Noughts and Crosses Engine (sometimes called the Machine Educable Noughts and Crosses Engine or MENACE) was a mechanical computer made from 304 matchboxes designed and built by artificial intelligence researcher Donald Michie and his colleague Roger Chambers, in 1961. It was designed to play human opponents in games of noughts and crosses (tic-tac-toe) by returning a move for any given state of play and to refine its strategy through reinforcement learning. This was one of the first types of artificial intelligence. Michie and Chambers did not have immediate access to a computer; they worked around this by building the engine out of matchboxes. The matchboxes they used each represented a single possible layout of a noughts and crosses grid. When the computer first played, it would randomly choose moves based on the current layout. As it played more games, through a reinforcement loop, it disqualified strategies that led to losing games, and supplemented strategies that led to winning games. Michie held a tournament against MENACE in 1961, wherein he experimented with different openings. Following MENACE's maiden tournament against Michie, it demonstrated successful artificial intelligence in its strategy. Michie's essays on MENACE's weight initialisation and the BOXES algorithm used by MENACE became popular in the field of computer science research. Michie was honoured for his contribution to machine learning research, and was twice commissioned to program a MENACE simulation on an actual computer. == Origin == Donald Michie (1923–2007) had been on the team decrypting the German Tunny Code during World War II. Fifteen years later, he wanted to further display his mathematical and computational prowess with an early convolutional neural network. Since computer equipment was not obtainable for such uses, and Michie did not have a computer readily available, he decided to display and demonstrate artificial intelligence in a more esoteric format and constructed a functional mechanical computer out of matchboxes and beads. MENACE was constructed as the result of a bet with a computer science colleague who postulated that such a machine was impossible. Michie undertook the task of collecting and defining each matchbox as a "fun project", later turned into a demonstration tool. Michie completed his essay on MENACE in 1963, "Experiments on the mechanization of game-learning", as well as his essay on the BOXES Algorithm, written with R. A. Chambers and had built up an AI research unit in Hope Park Square, Edinburgh, Scotland. MENACE learned by playing successive matches of noughts and crosses. Each time, it would eliminate a losing strategy by the human player confiscating the beads that corresponded to each move. It reinforced winning strategies by making the moves more likely, by supplying extra beads. This was one of the earliest versions of the Reinforcement Loop, the schematic algorithm of looping the algorithm, dropping unsuccessful strategies until only the winning ones remain. This model starts as completely random, and gradually learns. == Composition == MENACE was made from 304 matchboxes glued together in an arrangement similar to a chest of drawers. Each box had a code number, which was keyed into a chart. This chart had drawings of tic-tac-toe game grids with various configurations of X, O, and empty squares, corresponding to all possible permutations a game could go through as it progressed. After removing duplicate arrangements (ones that were simply rotations or mirror images of other configurations), MENACE used 304 permutations in its chart and thus that many matchboxes. Each individual matchbox tray contained a collection of coloured beads. Each colour represented a move on a square on the game grid, and so matchboxes with arrangements where positions on the grid were already taken would not have beads for that position. Additionally, at the front of the tray were two extra pieces of card in a "V" shape, the point of the "V" pointing at the front of the matchbox. Michie and his artificial intelligence team called MENACE's algorithm "Boxes", after the apparatus used for the machine. The first stage "Boxes" operated in five phases, each setting a definition and a precedent for the rules of the algorithm in relation to the game. == Operation == MENACE played first, as O, since all matchboxes represented permutations only relevant to the "X" player. To retrieve MENACE's choice of move, the opponent or operator located the matchbox that matched the current game state, or a rotation or mirror image of it. For example, at the start of a game, this would be the matchbox for an empty grid. The tray would be removed and lightly shaken so as to move the beads around. Then, the bead that had rolled into the point of the "V" shape at the front of the tray was the move MENACE had chosen to make. Its colour was then used as the position to play on, and, after accounting for any rotations or flips needed based on the chosen matchbox configuration's relation to the current grid, the O would be placed on that square. Then the player performed their move, the new state was located, a new move selected, and so on, until the game was finished. When the game had finished, the human player observed the game's outcome. As a game was played, each matchbox that was used for MENACE's turn had its tray returned to it ajar, and the bead used kept aside, so that MENACE's choice of moves and the game states they belonged to were recorded. Michie described his reinforcement system with "reward" and "punishment". Once the game was finished, if MENACE had won, it would then receive a "reward" for its victory. The removed beads showed the sequence of the winning moves. These were returned to their respective trays, easily identifiable since they were slightly open, as well as three bonus beads of the same colour. In this way, in future games MENACE would become more likely to repeat those winning moves, reinforcing winning strategies. If it lost, the removed beads were not returned, "punishing" MENACE, and meaning that in future it would be less likely, and eventually incapable if that colour of bead became absent, to repeat the moves that cause a loss. If the game was a draw, one additional bead was added to each box. == Results in practice == === Optimal strategy === Noughts and crosses has a well-known optimal strategy. A player must place their symbol in a way that blocks the other player from achieving any rows while simultaneously making a row themself. However, if both players use this strategy, the game always ends in a draw. If the human player is familiar with the optimal strategy, and MENACE can quickly learn it, then the games will eventually only end in draws. The likelihood of the computer winning increases quickly when the computer plays against a random-playing opponent. When playing against a player using optimal strategy, the odds of a draw grow to 100%. In Donald Michie's official tournament against MENACE in 1961 he used optimal strategy, and he and the computer began to draw consistently after twenty games. Michie's tournament had the following milestones: Michie began by consistently opening with "Variant 0", the middle square. At 15 games, MENACE abandoned all non-corner openings. At just over 20, Michie switched to consistently using "Variant 1", the bottom-right square. At 60, he returned to Variant 0. As he neared 80 games, he moved to "Variant 2", the top-middle. At 110, he switched to "Variant 3", the top right. At 135, he switched to "Variant 4", middle-right. At 190, he returned to Variant 1, and at 210, he returned to Variant 0. The trend in changes of beads in the "2" boxes runs: === Correlation === Depending on the strategy employed by the human player, MENACE produces a different trend on scatter graphs of wins. Using a random turn from the human player results in an almost-perfect positive trend. Playing the optimal strategy returns a slightly slower increase. The reinforcement does not create a perfect standard of wins; the algorithm will draw random uncertain conclusions each time. After the j-th round, the correlation of near-perfect play runs: 1 − D D − D ( j + 2 ) ∑ i = 0 j D ( j i + 1 ) V i {\displaystyle {1-D \over D-D^{(j+2)}}\sum _{i=0}^{j}D^{(ji+1)}V_{i}} Where Vi is the outcome (+1 is win, 0 is draw and -1 is loss) and D is the decay factor (average of past values of wins and losses). Below, Mn is the multiplier for the n-th round of the game. == Legacy == Donald Michie's MENACE proved that a computer could learn from failure and success to become good at a task. It used what would become core principles within the field of machine learning before they had been properly theorised. For example, the combination of how MENACE starts with equal numbers of types of beads in each matchbox, and how these are then selected at random, creates a learning behaviour similar to weight initialisation

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  • 80 Million Tiny Images

    80 Million Tiny Images

    80 Million Tiny Images is a dataset intended for training machine-learning systems constructed by Antonio Torralba, Rob Fergus, and William T. Freeman in a collaboration between MIT and New York University. It was published in 2008. The dataset has size 760 GB. It contains 79,302,017 32×32-pixel color images, scaled down from images scraped from the World Wide Web over 8 months. The images are classified into 75,062 classes. Each class is a non-abstract noun in WordNet. Images may appear in more than one class. The dataset was motivated by non-parametric models of neural activations in the visual cortex upon seeing images. The CIFAR-10 dataset uses a subset of the images in this dataset, but with independently generated labels, as the original labels were not reliable. The CIFAR-10 set has 6000 examples of each of 10 classes, and the CIFAR-100 set has 600 examples of each of 100 non-overlapping classes. == Construction == It was first reported in a technical report in April 2007, during the middle of the construction process, when there were only 73 million images. The full dataset was published in 2008. They began with all 75,846 non-abstract nouns in WordNet, and then for each of these nouns, they scraped 7 image search engines: Altavista, Ask.com, Flickr, Cydral, Google, Picsearch, and Webshots. After 8 months of scraping, they obtained 97,245,098 images. Since they did not have enough storage, they downsized the images to 32×32 as they were scraped. After gathering, they removed images with zero variance and intra-word duplicate images, resulting in the final dataset. Out of the 75,846 nouns, only 75,062 classes had any results, so the other nouns did not appear in the final dataset. The number of images per noun follows a Zipf-like distribution, with 1056 images per noun on average. To prevent a few nouns taking up too many images, they put an upper bound of at most 3000 images per noun. == Retirement == The 80 Million Tiny Images dataset was retired from use by its creators in 2020, after a paper by researchers Abeba Birhane and Vinay Prabhu found that some of the labeling of several publicly available image datasets, including 80 Million Tiny Images, contained racist and misogynistic slurs which were causing models trained on them to exhibit racial and sexual bias. The dataset also contained offensive images. Following the release of the paper, the dataset's creators removed the dataset from distribution, and requested that other researchers not use it for further research and to delete their copies of the dataset.

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  • AI warfare

    AI warfare

    AI warfare refers to the use of artificial intelligence technologies to automate military operation and enhance or bypass human decision-making in armed conflicts. AI is used to rapidly analyze large volumes of military intelligence data, including making recommendations or decisions on who and what to target. Abdul-Rahman al-Rawi, a 20-year-old student, was the first acknowledged civilian killed by AI-assisted airstrike in a U.S. strike in Iraq in 2024. In 2026, the U.S. declared it would become an 'AI-first' warfighting force. Husain et al (2018) coined the term hyperwar to refer to warfare which is algorithmic or controlled by artificial intelligence, with little to no human decision-making. == 2026 Iran war == The 2026 Iran war has been described as the "first AI war", although the Untied States and Israel have previously used AI to identify targets during the Gaza war. The U.S. has used AI tools to attack Iran. These tools have been used for military intelligence, targeting, and damage assessment in the war in Iran. Using the Maven smart system, the U.S. attacked 1,000 targets in the first 24 hours of the war and 5,000 targets over the course of 10 days. While the U.S. had used Maven in 2022 to share targeting information with Ukraine and strike against Iraq, Syria, and against the Houthis in 2024, Iran's attacks are its biggest. Authorities are looking into whether artificial intelligence was involved in the airstrike on an Iranian girls' school that killed 170 civilians, the majority of whom were female students. The United States Central Command emphasized that humans were making final targeting decisions. Per a White House tally released on April 8, the U.S. military hit over 13,000 targets in Iran during the war's first 38 days, including more than 2,000 command-and-control sites, 1,500 air defense targets, and 1,450 industrial infrastructure targets. == Gaza war == As part of the Gaza war, the Israel Defense Forces (IDF) have used artificial intelligence to rapidly and automatically perform much of the process of determining what to bomb. IDF's Unit 8200 developed AI systems, dubbed the Gospel and Lavender, to find targets for the Israeli Air Force to bomb. The Gospel automatically provides targeting recommendations to human analysts, who decide whether to approve strikes. Lavender identified 37,000 Hamas-linked individuals early in the war, and was used alongside the Gospel, which chooses buildings or structures as targets. According to a report by +972 Magazine and Local Call, strikes assisted by Lavender were routinely permitted to kill 5–20 civilians for each suspected Hamas militant, who were often bombed at home with their families. The IDF denies these claims, maintaining that every strike is assessed to minimize collateral damage, and that there is no policy "to kill tens of thousands of people in their homes." Israel deployed AI technologies during the Gaza war for audio analysis, facial recognition, and airstrike targeting. One such system was used to help identify the location of Hamas commander Ibrahim Biari through phone call analysis, leading to strikes that killed him as well as more than 125 civilians. == 2022 Russian Ukraine war == Kyiv launched a project with Palantir called Brave1 Dataroom to build AI systems using the extensive combat data Ukraine has gathered since Russia’s full-scale invasion in 2022. The country has also created tools for in-depth airstrike analysis, introduced AI to process large volumes of intelligence, and incorporated these technologies into the planning of long-range strike operations. == Involved companies == Maven Smart System is developed by Palantir. It integrates Anthropic's Claude as its large language model, and uses Amazon's AWS servers as its cloud infrastructure. Since Anthropic's refusal to support autonomous weapons development and domestic surveillance efforts. In its place, other AI firms, including OpenAI, have been brought in to take over that role. == Involved state actors == In 2024, the United States Department of Defense had 800-plus active AI-related projects and requested $1.8 billion in AI funding, with Project Maven and Project Artemis (AI-resistant drones developed together with Ukraine) being the main ones. The technology has been used in Iran, Iraq, Syria and Yemen to identify targets. China is pursuing intelligentized warfare, integrating AI across all combat domains—land, sea, air, space, and cyber—with military AI spending exceeding $1.6 billion annually. == International regulation == Since 2014, states meeting within the framework of the Convention on Certain Conventional Weapons have discussed lethal autonomous weapon systems. In 2016, the treaty's states parties established an open-ended Group of Governmental Experts on Lethal Autonomous Weapons Systems to continue those discussions. The discussions have addressed international humanitarian law, accountability, possible prohibitions and regulations, and the extent of human control required over AI-enabled weapons.

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  • Spatial embedding

    Spatial embedding

    Spatial embedding is one of feature learning techniques used in spatial analysis where points, lines, polygons or other spatial data types. representing geographic locations are mapped to vectors of real numbers. Conceptually it involves a mathematical embedding from a space with many dimensions per geographic object to a continuous vector space with a much lower dimension. Such embedding methods allow complex spatial data to be used in neural networks and have been shown to improve performance in spatial analysis tasks == Embedded data types == Geographic data can take many forms: text, images, graphs, trajectories, polygons. Depending on the task, there may be a need to combine multimodal data from different sources. The next section describes examples of different types of data and their uses. === Text === Geolocated posts on social media can be used to acquire a library of documents bound to a given place that can be later transformed to embedded vectors using word embedding techniques. === Image === Satellites and aircraft collect digital spatial data acquired from remotely sensed images which can be used in machine learning. They are sometimes hard to analyse using basic image analysis methods and convolutional neural networks can be used to acquire an embedding of images bound to a given geographical object or a region. === Point === A single point of interest (POI) can be assigned multiple features that can be used in machine learning. These could be demographic, transportation, meteorological, or economic data, for example. When embedding single points, it is common to consider the entire set of available points as nodes in a graph. === Line / multiline === Among other things, motion trajectories are represented as lines (multilines). Individual trajectories are embedded taking into account travel time, distances and also features of points visited along the way. Embedding of trajectories allows to improve performance of such tasks as clustering and also categorization. === Polygon === The geographic areas analyzed in machine learning are defined by both administrative boundaries and top-down division into grids of regular shapes such as rectangles, for example. Both types are represented as polygons and, like points, can be assigned different demographic, transportation, or economic features. A polygon can also have features related to the size of the area or shape it represents. === Graph === An example domain where graph representation is used is the street layout in a city, where vertices can be intersections and edges can be roads. The vertices can also be destination points like public transport stops or important points in the city, and the edges represent the flow between them. Embedding graphs or single vertices allows to improve accuracy of analysis methods in which the treated geographical domain can be represented as a network. == Usage == POI recommendation - generating personalized point of interest recommendations based on user preferences. Next/future location prediction - prediction of the next location a person will go to based on their historical trajectory. Zone functions classification - based on different mobility of people or POI distribution a function of a given area in a city can be predicted. Crime prediction - estimation of crime rate in different regions of a city. Local event detection - studying spatio-temporal changes in embeddings can provide valuable information in detection of local event occurring in specific location. Regional mobility popularity prediction - analysis of mobility can show patterns in popularity of different regions in a city. Shape matching - finding a similar shape of given polygon, for example finding building with the same shape as input building. Travel time estimation - predicting estimated travel time given current traffic conditions and special occurring events. Time estimation for on-demand food delivery - estimation of delivery time when placing an order through the website. == Temporal aspect == Some of the data analyzed has a timestamp associated with it. In some cases of data analysis this information is omitted and in others it is used to divide the set into groups. The most common division is the separation of weekdays from weekends or division into hours of the day. This is particularly important in the analysis of mobility data, because the characteristics of mobility during the week and at different times of the day are very different from each other. Another area in which time division into, for example, individual months can be used is in the analysis of tourism of a given region. In order to take such a split into account, embedding methods treat the time stamp specifically or separate versions of the model are developed for different subgroups of the analyzed set.

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  • Pwnie Awards

    Pwnie Awards

    The Pwnie Awards are an annual awards ceremony that recognizes both excellence and incompetence in the field of information security, described by SecurityWeek as an event that "recognizes excellence and mocks incompetence in cybersecurity." Winners are selected by a committee of security industry professionals from nominations collected from the information security community. Nominees are announced yearly at Summercon, and the awards themselves are presented at the Black Hat Security Conference. == Origins == The name Pwnie Award is based on the word "pwn", which is hacker slang meaning to "compromise" or "control" based on the previous usage of the word "own" (and it is pronounced similarly). The name "The Pwnie Awards," pronounced as "Pony," is meant to sound like the Tony Awards, an awards ceremony for Broadway theater in New York City. == History == The Pwnie Awards were founded in 2007 by Alexander Sotirov and Dino Dai Zovi following discussions regarding Dino's discovery of a cross-platform QuickTime vulnerability (CVE-2007-2175) and Alexander's discovery of an ANI file processing vulnerability (CVE-2007-0038) in Internet Explorer. == Winners == === 2024 === Most Epic Fail: Crowdstrike for 2024 CrowdStrike incident Best Mobile Bug: Operation Triangulation Lamest Vendor Response: Xiaomi for obstructing Pwn2Own researchers from using their services Best Cryptographic Attack: GoFetch Best Desktop Bug: forcing realtime WebAudio playback in Chrome (CVE-2023-5996) Best Song: Touch Some Grass by UwU Underground Best Privilege Escalation: Windows Streaming Service UAF (CVE-2024-30089) by Valentina Palmiotti (chompie) Best Remote Code Execution: Microsoft Message Queuing (MSMQ) Remote Code Execution Vulnerability (CVE-2024-30080) Most Epic Achievement: Discovery and reverse engineering of the XZ Utils backdoor Most Innovative Research: Let the Cache Cache and Let the WebAssembly Assemble: Knocking’ on Chrome’s Shell by Edouard Bochin, Tao Yan, and Bo Qu Most Underhyped Research: See No Eval: Runtime Dynamic Code Execution in Objective-C === 2023 === Best Desktop Bug: CountExposure! by RyeLv(@b2ahex) Best Cryptographic Attack: Video-based cryptanalysis: Extracting Cryptographic Keys from Video Footage of a Device’s Power LED by Ben Nassi, Etay Iluz, Or Cohen, Ofek Vayner, Dudi Nassi, Boris Zadov, Yuval Elovici Best Song: Clickin’ Most Innovative Research: Inside Apple’s Lightning: Jtagging the iPhone for Fuzzing and Profit Most Under-Hyped Research: Activation Context Cache Poisoning Best Privilege Escalation Bug: URB Excalibur: Slicing Through the Gordian Knot of VMware VM Escapes Best Remote Code Execution Bug: ClamAV RCE Lamest Vendor Response: Three Lessons From Threema: Analysis of a Secure Messenger Most Epic Fail: “Holy fucking bingle, we have the no fly list,” Epic Achievement: Clement Lecigne: 0-days hunter world champion Lifetime Achievement Award: Mudge === 2022 === Lamest Vendor Response: Google's "TAG" response team for "unilaterally shutting down a counterterrorism operation." Epic Achievement: Yuki Chen’s Windows Server-Side RCE Bugs Most Epic Fail: HackerOne Employee Caught Stealing Vulnerability Reports for Personal Gains Best Desktop Bug: Pietro Borrello, Andreas Kogler, Martin Schwarzl, Moritz Lipp, Daniel Gruss, Michael Schwarz for Architecturally Leaking Data from the Microarchitecture Most Innovative Research: Pietro Borrello, Martin Schwarzl, Moritz Lipp, Daniel Gruss, Michael Schwarz for Custom Processing Unit: Tracing and Patching Intel Atom Microcode Best Cryptographic Attack: Hertzbleed: Turning Power Side-Channel Attacks Into Remote Timing Attacks on x86 by Yingchen Wang, Riccardo Paccagnella, Elizabeth Tang He, Hovav Shacham, Christopher Fletcher, David Kohlbrenner Best Remote Code Execution Bug: KunlunLab for Windows RPC Runtime Remote Code Execution (CVE-2022-26809) Best Privilege Escalation Bug: Qidan He of Dawnslab, for Mystique in the House: The Droid Vulnerability Chain That Owns All Your Userspace Best Mobile Bug: FORCEDENTRY Most Under-Hyped Research: Yannay Livneh for Spoofing IP with IPIP Best Song: Dialed Up by Project Mammoth === 2021 === Lamest Vendor Response: Cellebrite, for their response to Moxie, the creator of Signal, reverse-engineering their UFED and accompanying software and reporting a discovered exploit. Epic Achievement: Ilfak Guilfanov, in honor of IDA's 30th Anniversary. Best Privilege Escalation Bug: Baron Samedit of Qualys, for the discovery of a 10-year-old exploit in sudo. Best Song: The Ransomware Song by Forrest Brazeal Best Server-Side Bug: Orange Tsai, for his Microsoft Exchange Server ProxyLogon attack surface discoveries. Best Cryptographic Attack: The NSA for its disclosure of a bug in the verification of signatures in Windows which breaks the certificate trust chain. Most Innovative Research: Enes Göktaş, Kaveh Razavi, Georgios Portokalidis, Herbert Bos, and Cristiano Giuffrida at VUSec for their research on the "BlindSide" Attack. Most Epic Fail: Microsoft, for their failure to fix PrintNightmare. Best Client-Side Bug: Gunnar Alendal's discovery of a buffer overflow on the Samsung Galaxy S20's secure chip. Most Under-Hyped Research: The Qualys Research Team for 21Nails, 21 vulnerabilities in Exim, the Internet's most popular mail server. === 2020 === Best Server-Side Bug: BraveStarr (CVE-2020-10188) – A Fedora 31 netkit telnetd remote exploit (Ronald Huizer') Best Privilege Escalation Bug: checkm8 – A permanent unpatchable USB bootrom exploit for a billion iOS devices. (axi0mX) Epic Achievement: "Remotely Rooting Modern Android Devices" (Guang Gong) Best Cryptographic Attack: Zerologon vulnerability (Tom Tervoort, CVE-2020-1472) Best Client-Side Bug: RCE on Samsung Phones via MMS (CVE-2020-8899 and -16747), a zero click remote execution attack. (Mateusz Jurczyk) Most Under-Hyped Research: Vulnerabilities in System Management Mode (SMM) and Trusted Execution Technology (TXT) (CVE-2019-0151 and -0152) (Gabriel Negreira Barbosa, Rodrigo Rubira Branco, Joe Cihula) Most Innovative Research: TRRespass: When Memory Vendors Tell You Their Chips Are Rowhammer-free, They Are Not. (Pietro Frigo, Emanuele Vannacci, Hasan Hassan, Victor van der Veen, Onur Mutlu, Cristiano Giuffrida, Herbert Bos, Kaveh Razavi) Most Epic Fail: Microsoft; for the implementation of Elliptic-curve signatures which allowed attackers to generate private pairs for public keys of any signer, allowing HTTPS and signed binary spoofing. (CVE-2020-0601) Best Song: Powertrace by Rebekka Aigner, Daniel Gruss, Manuel Weber, Moritz Lipp, Patrick Radkohl, Andreas Kogler, Maria Eichlseder, ElTonno, tunefish, Yuki and Kater Lamest Vendor Response: Daniel J. Bernstein (CVE-2005-1513) === 2019 === Best Server-Side Bug: Orange Tsai and Meh Chang, for their SSL VPN research. Most Innovative Research: Vectorized Emulation Brandon Falk Best Cryptographic Attack: \m/ Dr4g0nbl00d \m/ Mathy Vanhoef, Eyal Ronen Lamest Vendor Response: Bitfi Most Over-hyped Bug: Allegations of Supermicro hardware backdoors, Bloomberg Most Under-hyped Bug: Thrangrycat, (Jatin Kataria, Red Balloon Security) === 2018 === Most Innovative Research: Spectre/Meltdown (Paul Kocher, Jann Horn, Anders Fogh, Daniel Genkin, Daniel Gruss, Werner Haas, Mike Hamburg, Moritz Lipp, Stefan Mangard, Thomas Prescher, Michael Schwarz, Yuval Yarom) Best Privilege Escalation Bug: Spectre/Meltdown (Paul Kocher, Jann Horn, Anders Fogh, Daniel Genkin, Daniel Gruss, Werner Haas, Mike Hamburg, Moritz Lipp, Stefan Mangard, Thomas Prescher, Michael Schwarz, Yuval Yarom) Lifetime Achievement: Michał Zalewski Best Cryptographic Attack: ROBOT - Return Of Bleichenbacher’s Oracle Threat Hanno Böck, Juraj Somorovsky, Craig Young Lamest Vendor Response: Bitfi hardware crypto-wallet, after the "unhackable" device was hacked to extract the keys required to steal coins and rooted to play Doom. === 2017 === Epic Achievement: Federico Bento for Finally getting TIOCSTI ioctl attack fixed Most Innovative Research: ASLR on the line Ben Gras, Kaveh Razavi, Erik Bosman, Herbert Bos, Cristiano Giuffrida Best Privilege Escalation Bug: DRAMMER Victor van der Veen, Yanick Fratantonio, Martina Lindorfer, Daniel Gruss, Clementine Maurice, Giovanni Vigna, Herbert Bos, Kaveh Razavi, Cristiano Giuffrida Best Cryptographic Attack: The first collision for full SHA-1 Marc Stevens, Elie Bursztein, Pierre Karpman, Ange Albertini, Yarik Markov Lamest Vendor Response: Lennart Poettering - for mishandling security vulnerabilities most spectacularly for multiple critical Systemd bugs Best Song: Hello (From the Other Side) - Manuel Weber, Michael Schwarz, Daniel Gruss, Moritz Lipp, Rebekka Aigner === 2016 === Most Innovative Research: Dedup Est Machina: Memory Deduplication as an Advanced Exploitation Vector Erik Bosman, Kaveh Razavi, Herbert Bos, Cristiano Giuffrida Lifetime Achievement: Peiter Zatko aka Mudge Best Cryptographic Attack: DROWN attack Nimrod Aviram et al. Best Song: Cyberlier - Katie Mous

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  • Kernel embedding of distributions

    Kernel embedding of distributions

    In machine learning, the kernel embedding of distributions (also called the kernel mean or mean map) comprises a class of nonparametric methods in which a probability distribution is represented as an element of a reproducing kernel Hilbert space (RKHS). A generalization of the individual data-point feature mapping done in classical kernel methods, the embedding of distributions into infinite-dimensional feature spaces can preserve all of the statistical features of arbitrary distributions, while allowing one to compare and manipulate distributions using Hilbert space operations such as inner products, distances, projections, linear transformations, and spectral analysis. This learning framework is very general and can be applied to distributions over any space Ω {\displaystyle \Omega } on which a sensible kernel function (measuring similarity between elements of Ω {\displaystyle \Omega } ) may be defined. For example, various kernels have been proposed for learning from data which are: vectors in R d {\displaystyle \mathbb {R} ^{d}} , discrete classes/categories, strings, graphs/networks, images, time series, manifolds, dynamical systems, and other structured objects. The theory behind kernel embeddings of distributions has been primarily developed by Alex Smola, Le Song, Arthur Gretton, and Bernhard Schölkopf. A review of recent works on kernel embedding of distributions can be found in. The analysis of distributions is fundamental in machine learning and statistics, and many algorithms in these fields rely on information theoretic approaches such as entropy, mutual information, or Kullback–Leibler divergence. However, to estimate these quantities, one must first either perform density estimation, or employ sophisticated space-partitioning/bias-correction strategies which are typically infeasible for high-dimensional data. Commonly, methods for modeling complex distributions rely on parametric assumptions that may be unfounded or computationally challenging (e.g. Gaussian mixture models), while nonparametric methods like kernel density estimation (Note: the smoothing kernels in this context have a different interpretation than the kernels discussed here) or characteristic function representation (via the Fourier transform of the distribution) break down in high-dimensional settings. Methods based on the kernel embedding of distributions sidestep these problems and also possess the following advantages: Data may be modeled without restrictive assumptions about the form of the distributions and relationships between variables Intermediate density estimation is not needed Practitioners may specify the properties of a distribution most relevant for their problem (incorporating prior knowledge via choice of the kernel) If a characteristic kernel is used, then the embedding can uniquely preserve all information about a distribution, while thanks to the kernel trick, computations on the potentially infinite-dimensional RKHS can be implemented in practice as simple Gram matrix operations Dimensionality-independent rates of convergence for the empirical kernel mean (estimated using samples from the distribution) to the kernel embedding of the true underlying distribution can be proven. Learning algorithms based on this framework exhibit good generalization ability and finite sample convergence, while often being simpler and more effective than information theoretic methods Thus, learning via the kernel embedding of distributions offers a principled drop-in replacement for information theoretic approaches and is a framework which not only subsumes many popular methods in machine learning and statistics as special cases, but also can lead to entirely new learning algorithms. == Definitions == Let X {\displaystyle X} denote a random variable with domain Ω {\displaystyle \Omega } and distribution P {\displaystyle P} . Given a symmetric, positive-definite kernel k : Ω × Ω → R {\displaystyle k:\Omega \times \Omega \rightarrow \mathbb {R} } the Moore–Aronszajn theorem asserts the existence of a unique RKHS H {\displaystyle {\mathcal {H}}} on Ω {\displaystyle \Omega } (a Hilbert space of functions f : Ω → R {\displaystyle f:\Omega \to \mathbb {R} } equipped with an inner product ⟨ ⋅ , ⋅ ⟩ H {\displaystyle \langle \cdot ,\cdot \rangle _{\mathcal {H}}} and a norm ‖ ⋅ ‖ H {\displaystyle \|\cdot \|_{\mathcal {H}}} ) for which k {\displaystyle k} is a reproducing kernel, i.e., in which the element k ( x , ⋅ ) {\displaystyle k(x,\cdot )} satisfies the reproducing property ⟨ f , k ( x , ⋅ ) ⟩ H = f ( x ) ∀ f ∈ H , ∀ x ∈ Ω . {\displaystyle \langle f,k(x,\cdot )\rangle _{\mathcal {H}}=f(x)\qquad \forall f\in {\mathcal {H}},\quad \forall x\in \Omega .} One may alternatively consider x ↦ k ( x , ⋅ ) {\displaystyle x\mapsto k(x,\cdot )} as an implicit feature mapping φ : Ω → H {\displaystyle \varphi :\Omega \rightarrow {\mathcal {H}}} (which is therefore also called the feature space), so that k ( x , x ′ ) = ⟨ φ ( x ) , φ ( x ′ ) ⟩ H {\displaystyle k(x,x')=\langle \varphi (x),\varphi (x')\rangle _{\mathcal {H}}} can be viewed as a measure of similarity between points x , x ′ ∈ Ω . {\displaystyle x,x'\in \Omega .} While the similarity measure is linear in the feature space, it may be highly nonlinear in the original space depending on the choice of kernel. === Kernel embedding === The kernel embedding of the distribution P {\displaystyle P} in H {\displaystyle {\mathcal {H}}} (also called the kernel mean or mean map) is given by: μ X := E [ k ( X , ⋅ ) ] = E [ φ ( X ) ] = ∫ Ω φ ( x ) d P ( x ) {\displaystyle \mu _{X}:=\mathbb {E} [k(X,\cdot )]=\mathbb {E} [\varphi (X)]=\int _{\Omega }\varphi (x)\ \mathrm {d} P(x)} If P {\displaystyle P} allows a square integrable density p {\displaystyle p} , then μ X = E k p {\displaystyle \mu _{X}={\mathcal {E}}_{k}p} , where E k {\displaystyle {\mathcal {E}}_{k}} is the Hilbert–Schmidt integral operator. A kernel is characteristic if the mean embedding μ : { family of distributions over Ω } → H {\displaystyle \mu :\{{\text{family of distributions over }}\Omega \}\to {\mathcal {H}}} is injective. Each distribution can thus be uniquely represented in the RKHS and all statistical features of distributions are preserved by the kernel embedding if a characteristic kernel is used. === Empirical kernel embedding === Given n {\displaystyle n} training examples { x 1 , … , x n } {\displaystyle \{x_{1},\ldots ,x_{n}\}} drawn independently and identically distributed (i.i.d.) from P , {\displaystyle P,} the kernel embedding of P {\displaystyle P} can be empirically estimated as μ ^ X = 1 n ∑ i = 1 n φ ( x i ) {\displaystyle {\widehat {\mu }}_{X}={\frac {1}{n}}\sum _{i=1}^{n}\varphi (x_{i})} === Joint distribution embedding === If Y {\displaystyle Y} denotes another random variable (for simplicity, assume the co-domain of Y {\displaystyle Y} is also Ω {\displaystyle \Omega } with the same kernel k {\displaystyle k} which satisfies ⟨ φ ( x ) ⊗ φ ( y ) , φ ( x ′ ) ⊗ φ ( y ′ ) ⟩ = k ( x , x ′ ) k ( y , y ′ ) {\displaystyle \langle \varphi (x)\otimes \varphi (y),\varphi (x')\otimes \varphi (y')\rangle =k(x,x')k(y,y')} ), then the joint distribution P ( x , y ) ) {\displaystyle P(x,y))} can be mapped into a tensor product feature space H ⊗ H {\displaystyle {\mathcal {H}}\otimes {\mathcal {H}}} via C X Y = E [ φ ( X ) ⊗ φ ( Y ) ] = ∫ Ω × Ω φ ( x ) ⊗ φ ( y ) d P ( x , y ) {\displaystyle {\mathcal {C}}_{XY}=\mathbb {E} [\varphi (X)\otimes \varphi (Y)]=\int _{\Omega \times \Omega }\varphi (x)\otimes \varphi (y)\ \mathrm {d} P(x,y)} By the equivalence between a tensor and a linear map, this joint embedding may be interpreted as an uncentered cross-covariance operator C X Y : H → H {\displaystyle {\mathcal {C}}_{XY}:{\mathcal {H}}\to {\mathcal {H}}} from which the cross-covariance of functions f , g ∈ H {\displaystyle f,g\in {\mathcal {H}}} can be computed as Cov ⁡ ( f ( X ) , g ( Y ) ) := E [ f ( X ) g ( Y ) ] − E [ f ( X ) ] E [ g ( Y ) ] = ⟨ f , C X Y g ⟩ H = ⟨ f ⊗ g , C X Y ⟩ H ⊗ H {\displaystyle \operatorname {Cov} (f(X),g(Y)):=\mathbb {E} [f(X)g(Y)]-\mathbb {E} [f(X)]\mathbb {E} [g(Y)]=\langle f,{\mathcal {C}}_{XY}g\rangle _{\mathcal {H}}=\langle f\otimes g,{\mathcal {C}}_{XY}\rangle _{{\mathcal {H}}\otimes {\mathcal {H}}}} Given n {\displaystyle n} pairs of training examples { ( x 1 , y 1 ) , … , ( x n , y n ) } {\displaystyle \{(x_{1},y_{1}),\dots ,(x_{n},y_{n})\}} drawn i.i.d. from P {\displaystyle P} , we can also empirically estimate the joint distribution kernel embedding via C ^ X Y = 1 n ∑ i = 1 n φ ( x i ) ⊗ φ ( y i ) {\displaystyle {\widehat {\mathcal {C}}}_{XY}={\frac {1}{n}}\sum _{i=1}^{n}\varphi (x_{i})\otimes \varphi (y_{i})} === Conditional distribution embedding === Given a conditional distribution P ( y ∣ x ) , {\displaystyle P(y\mid x),} one can define the corresponding RKHS embedding as μ Y ∣ x = E [ φ ( Y ) ∣ X ] = ∫ Ω φ ( y ) d P ( y ∣ x ) {\displaystyle \mu _{Y\mid x}=\mathbb {E} [\varphi (Y)\mid X]=\int _{\Omega

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  • Label noise

    Label noise

    Label noise refers to errors or inaccuracies in the class labels of data instances. This is a widespread issue in machine learning datasets, arising from human annotator mistakes, unclear labeling instructions, automated labeling methods, or adversarial attacks in supervised learning. Label noise can be roughly divided into random noise, where labels are flipped independently of input features, and systematic noise, where mislabeling is dependent on certain patterns or biases in the data. Label noise can be damaging to model performance, especially for complex models that may overfit to noisy labels rather than generalizable patterns. Many approaches have been proposed to deal with the effects of label noise, including robust loss functions, noise-tolerant algorithms, data cleaning methods, and semi-supervised learning approaches. To reduce the impact of wrong labels during training, techniques like label smoothing, sample reweighting and using trusted validation sets are used. The role of noise-robust training paradigms and curriculum learning strategies to improve resilience against mislabeled data is also explored in recent research.

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  • Algorithm selection

    Algorithm selection

    Algorithm selection (sometimes also called per-instance algorithm selection or offline algorithm selection) is a meta-algorithmic technique to choose an algorithm from a portfolio on an instance-by-instance basis. It is motivated by the observation that on many practical problems, different algorithms have different performance characteristics. That is, while one algorithm performs well in some scenarios, it performs poorly in others and vice versa for another algorithm. If we can identify when to use which algorithm, we can optimize for each scenario and improve overall performance. This is what algorithm selection aims to do. The only prerequisite for applying algorithm selection techniques is that there exists (or that there can be constructed) a set of complementary algorithms. == Definition == Given a portfolio P {\displaystyle {\mathcal {P}}} of algorithms A ∈ P {\displaystyle {\mathcal {A}}\in {\mathcal {P}}} , a set of instances i ∈ I {\displaystyle i\in {\mathcal {I}}} and a cost metric m : P × I → R {\displaystyle m:{\mathcal {P}}\times {\mathcal {I}}\to \mathbb {R} } , the algorithm selection problem consists of finding a mapping s : I → P {\displaystyle s:{\mathcal {I}}\to {\mathcal {P}}} from instances I {\displaystyle {\mathcal {I}}} to algorithms P {\displaystyle {\mathcal {P}}} such that the cost ∑ i ∈ I m ( s ( i ) , i ) {\displaystyle \sum _{i\in {\mathcal {I}}}m(s(i),i)} across all instances is optimized. == Examples == === Boolean satisfiability problem (and other hard combinatorial problems) === A well-known application of algorithm selection is the Boolean satisfiability problem. Here, the portfolio of algorithms is a set of (complementary) SAT solvers, the instances are Boolean formulas, the cost metric is for example average runtime or number of unsolved instances. So, the goal is to select a well-performing SAT solver for each individual instance. In the same way, algorithm selection can be applied to many other N P {\displaystyle {\mathcal {NP}}} -hard problems (such as mixed integer programming, CSP, AI planning, TSP, MAXSAT, QBF and answer set programming). Competition-winning systems in SAT are SATzilla, 3S and CSHC === Machine learning === In machine learning, algorithm selection is better known as meta-learning. The portfolio of algorithms consists of machine learning algorithms (e.g., Random Forest, SVM, DNN), the instances are data sets and the cost metric is for example the error rate. So, the goal is to predict which machine learning algorithm will have a small error on each data set. == Instance features == The algorithm selection problem is mainly solved with machine learning techniques. By representing the problem instances by numerical features f {\displaystyle f} , algorithm selection can be seen as a multi-class classification problem by learning a mapping f i ↦ A {\displaystyle f_{i}\mapsto {\mathcal {A}}} for a given instance i {\displaystyle i} . Instance features are numerical representations of instances. For example, we can count the number of variables, clauses, average clause length for Boolean formulas, or number of samples, features, class balance for ML data sets to get an impression about their characteristics. === Static vs. probing features === We distinguish between two kinds of features: Static features are in most cases some counts and statistics (e.g., clauses-to-variables ratio in SAT). These features ranges from very cheap features (e.g. number of variables) to very complex features (e.g., statistics about variable-clause graphs). Probing features (sometimes also called landmarking features) are computed by running some analysis of algorithm behavior on an instance (e.g., accuracy of a cheap decision tree algorithm on an ML data set, or running for a short time a stochastic local search solver on a Boolean formula). These feature often cost more than simple static features. === Feature costs === Depending on the used performance metric m {\displaystyle m} , feature computation can be associated with costs. For example, if we use running time as performance metric, we include the time to compute our instance features into the performance of an algorithm selection system. SAT solving is a concrete example, where such feature costs cannot be neglected, since instance features for CNF formulas can be either very cheap (e.g., to get the number of variables can be done in constant time for CNFs in the DIMACs format) or very expensive (e.g., graph features which can cost tens or hundreds of seconds). It is important to take the overhead of feature computation into account in practice in such scenarios; otherwise a misleading impression of the performance of the algorithm selection approach is created. For example, if the decision which algorithm to choose can be made with perfect accuracy, but the features are the running time of the portfolio algorithms, there is no benefit to the portfolio approach. This would not be obvious if feature costs were omitted. == Approaches == === Regression approach === One of the first successful algorithm selection approaches predicted the performance of each algorithm m ^ A : I → R {\displaystyle {\hat {m}}_{\mathcal {A}}:{\mathcal {I}}\to \mathbb {R} } and selected the algorithm with the best predicted performance a r g min A ∈ P m ^ A ( i ) {\displaystyle arg\min _{{\mathcal {A}}\in {\mathcal {P}}}{\hat {m}}_{\mathcal {A}}(i)} for an instance i {\displaystyle i} . === Clustering approach === A common assumption is that the given set of instances I {\displaystyle {\mathcal {I}}} can be clustered into homogeneous subsets and for each of these subsets, there is one well-performing algorithm for all instances in there. So, the training consists of identifying the homogeneous clusters via an unsupervised clustering approach and associating an algorithm with each cluster. A new instance is assigned to a cluster and the associated algorithm selected. A more modern approach is cost-sensitive hierarchical clustering using supervised learning to identify the homogeneous instance subsets. === Pairwise cost-sensitive classification approach === A common approach for multi-class classification is to learn pairwise models between every pair of classes (here algorithms) and choose the class that was predicted most often by the pairwise models. We can weight the instances of the pairwise prediction problem by the performance difference between the two algorithms. This is motivated by the fact that we care most about getting predictions with large differences correct, but the penalty for an incorrect prediction is small if there is almost no performance difference. Therefore, each instance i {\displaystyle i} for training a classification model A 1 {\displaystyle {\mathcal {A}}_{1}} vs A 2 {\displaystyle {\mathcal {A}}_{2}} is associated with a cost | m ( A 1 , i ) − m ( A 2 , i ) | {\displaystyle |m({\mathcal {A}}_{1},i)-m({\mathcal {A}}_{2},i)|} . == Requirements == The algorithm selection problem can be effectively applied under the following assumptions: The portfolio P {\displaystyle {\mathcal {P}}} of algorithms is complementary with respect to the instance set I {\displaystyle {\mathcal {I}}} , i.e., there is no single algorithm A ∈ P {\displaystyle {\mathcal {A}}\in {\mathcal {P}}} that dominates the performance of all other algorithms over I {\displaystyle {\mathcal {I}}} (see figures to the right for examples on complementary analysis). In some application, the computation of instance features is associated with a cost. For example, if the cost metric is running time, we have also to consider the time to compute the instance features. In such cases, the cost to compute features should not be larger than the performance gain through algorithm selection. == Application domains == Algorithm selection is not limited to single domains but can be applied to any kind of algorithm if the above requirements are satisfied. Application domains include: hard combinatorial problems: SAT, Mixed Integer Programming, CSP, AI Planning, TSP, MAXSAT, QBF and Answer Set Programming combinatorial auctions in machine learning, the problem is known as meta-learning software design black-box optimization multi-agent systems numerical optimization linear algebra, differential equations evolutionary algorithms vehicle routing problem power systems For an extensive list of literature about algorithm selection, we refer to a literature overview. == Variants of algorithm selection == === Online selection === Online algorithm selection refers to switching between different algorithms during the solving process. This is useful as a hyper-heuristic. In contrast, offline algorithm selection selects an algorithm for a given instance only once and before the solving process. === Computation of schedules === An extension of algorithm selection is the per-instance algorithm scheduling problem, in which we do not select only one solver, but we select a time budget for each algorithm

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  • Oculus Quill

    Oculus Quill

    Quill is a painting and animation software for virtual reality. It runs on Microsoft Windows with Oculus Rift headsets. It is used to create 3D paintings and animated cartoons. Quill was released on November 29, 2016, on the Oculus Store. Theater Elsewhere(formerly Quill Theater), an application for viewing creations made in Quill, was later made available following the release of the Oculus Quest. In September 2021, Facebook, now known as Meta Platforms, and the owner of Oculus, sold Quill to its original creator, who continues to develop and support the app. == Development == Quill was originally developed by Oculus Story Studio as an internal tool for the creative needs of the studio's project Dear Angelica directed by Saschka Unseld along with its art-director Wesley Allsbrook. == Controls == The software works on Oculus Rift utilizing its 6DoF motion controllers. Users can paint in 3D space using their hands naturally, and animate those paintings with keyframes. They can also capture videos and photos of their creations. == Reception == Dear Angelica, a VR story fully painted in Quill, was nominated for an Emmy Award in 2017.

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  • Document classification

    Document classification

    Document classification or document categorization is a problem in library science, information science and computer science. The task is to assign a document to one or more classes or categories. This may be done "manually" (or "intellectually") or algorithmically. The intellectual classification of documents has mostly been the province of library science, while the algorithmic classification of documents is mainly in information science and computer science. The problems are overlapping, however, and there is therefore interdisciplinary research on document classification. The documents to be classified may be texts, images, music, etc. Each kind of document possesses its special classification problems. When not otherwise specified, text classification is implied. Documents may be classified according to their subjects or according to other attributes (such as document type, author, printing year etc.). In the rest of this article only subject classification is considered. There are two main philosophies of subject classification of documents: the content-based approach and the request-based approach. == "Content-based" versus "request-based" classification == Content-based classification is classification in which the weight given to particular subjects in a document determines the class to which the document is assigned. It is, for example, a common rule for classification in libraries, that at least 20% of the content of a book should be about the class to which the book is assigned. In automatic classification it could be the number of times given words appears in a document. Request-oriented classification (or -indexing) is classification in which the anticipated request from users is influencing how documents are being classified. The classifier asks themself: “Under which descriptors should this entity be found?” and “think of all the possible queries and decide for which ones the entity at hand is relevant” (Soergel, 1985, p. 230). Request-oriented classification may be classification that is targeted towards a particular audience or user group. For example, a library or a database for feminist studies may classify/index documents differently when compared to a historical library. It is probably better, however, to understand request-oriented classification as policy-based classification: The classification is done according to some ideals and reflects the purpose of the library or database doing the classification. In this way it is not necessarily a kind of classification or indexing based on user studies. Only if empirical data about use or users are applied should request-oriented classification be regarded as a user-based approach. == Classification versus indexing == Sometimes a distinction is made between assigning documents to classes ("classification") versus assigning subjects to documents ("subject indexing") but as Frederick Wilfrid Lancaster has argued, this distinction is not fruitful. "These terminological distinctions,” he writes, “are quite meaningless and only serve to cause confusion” (Lancaster, 2003, p. 21). The view that this distinction is purely superficial is also supported by the fact that a classification system may be transformed into a thesaurus and vice versa (cf., Aitchison, 1986, 2004; Broughton, 2008; Riesthuis & Bliedung, 1991). Therefore, assigning a subject term to a document in an index is equivalent to assigning that document to the class of documents indexed by that term (all documents indexed or classified as X belong to the same class of documents). == Automatic document classification (ADC) == Automatic document classification tasks can be divided into three sorts: supervised document classification where some external mechanism (such as human feedback) provides information on the correct classification for documents, unsupervised document classification (also known as document clustering), where the classification must be done entirely without reference to external information, and semi-supervised document classification, where parts of the documents are labeled by the external mechanism. There are several software products under various license models available. === Techniques === Automatic document classification techniques include: Artificial neural network Concept Mining Decision trees such as ID3 or C4.5 Expectation maximization (EM) Instantaneously trained neural networks Latent semantic indexing Multiple-instance learning Naive Bayes classifier Natural language processing approaches Rough set-based classifier Soft set-based classifier Support vector machines (SVM) K-nearest neighbour algorithms tf–idf == Applications == Classification techniques have been applied to spam filtering, a process which tries to discern E-mail spam messages from legitimate emails email routing, sending an email sent to a general address to a specific address or mailbox depending on topic language identification, automatically determining the language of a text genre classification, automatically determining the genre of a text readability assessment, automatically determining the degree of readability of a text, either to find suitable materials for different age groups or reader types or as part of a larger text simplification system sentiment analysis, determining the attitude of a speaker or a writer with respect to some topic or the overall contextual polarity of a document. health-related classification using social media in public health surveillance article triage, selecting articles that are relevant for manual literature curation, for example as is being done as the first step to generate manually curated annotation databases in biology

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  • Data annotation

    Data annotation

    Data annotation is the process of labeling or tagging relevant metadata within a dataset to enable machines to interpret the data accurately. The dataset can take various forms, including images, audio files, video footage, or text. == Applications == Data is a fundamental component in the development of artificial intelligence (AI). Training AI models, particularly in computer vision and natural language processing, requires large volumes of annotated data. Proper annotation ensures that machine learning algorithms can recognize patterns and make accurate predictions. Common types of data annotation include classification, bounding boxes, semantic segmentation, and keypoint annotation. Data annotation is used in AI-driven fields, including healthcare, autonomous vehicles, retail, security, and entertainment. By accurately labeling data, machine learning models can perform complex tasks such as object detection, sentiment analysis, and speech recognition with greater precision. This growing demand has led to the emergence of specialized sectors and platforms dedicated to AI training and human-in-the-loop workflows, which often utilize Reinforcement Learning from Human Feedback (RLHF) to refine model behavior. == In computer vision == === Image classification === Image classification, also known as image categorization, involves assigning predefined labels to images. Machine learning algorithms trained on classified images can later recognize objects and differentiate between categories. For instance, an AI model trained to recognize furniture styles can distinguish between Georgian and Rococo armchairs. === Semantic segmentation === Semantic segmentation assigns each pixel in an image to a specific class, such as trees, vehicles, humans, or buildings. This type of annotation enables machine learning models to differentiate objects by grouping similar pixels, allowing for a detailed understanding of an image. === Bounding boxes === Bounding box annotation involves drawing rectangular boxes around objects in an image. This technique is commonly used in autonomous driving, security surveillance, and retail analytics to detect and classify objects such as pedestrians, vehicles, and products on store shelves. === 3D cuboids === 3D cuboid annotation enhances traditional bounding boxes by adding depth, enabling models to predict an object's spatial orientation, movement, and size. This method is particularly useful for autonomous vehicles and robotics, where understanding object dimensions and depth is critical. === Polygonal annotation === For objects with irregular shapes, such as curved or multi-sided items, polygonal annotation provides more precise labeling than bounding boxes. This technique is often used in applications that require detailed object recognition, such as medical imaging or aerial mapping. === Keypoint annotation === Keypoint annotation marks specific points on an object, such as facial landmarks or body joints, to enable tracking and motion analysis. This method is widely used in facial recognition, emotion detection, sports analytics, and augmented reality applications.

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  • Neurorobotics

    Neurorobotics

    Neurorobotics is the combined study of neuroscience, robotics, and artificial intelligence. It is the science and technology of embodied autonomous neural systems. Neural systems include brain-inspired algorithms (e.g. connectionist networks), computational models of biological neural networks (e.g. artificial spiking neural networks, large-scale simulations of neural microcircuits) and actual biological systems (e.g. in vivo and in vitro neural nets). Such neural systems can be embodied in machines with mechanic or any other forms of physical actuation. This includes robots, prosthetic or wearable systems but also, at smaller scale, micro-machines and, at the larger scales, furniture and infrastructures. Neurorobotics is that branch of neuroscience with robotics, which deals with the study and application of science and technology of embodied autonomous neural systems like brain-inspired algorithms. It is based on the idea that the brain is embodied and the body is embedded in the environment. Therefore, most neurorobots are required to function in the real world, as opposed to a simulated environment. Beyond brain-inspired algorithms for robots neurorobotics may also involve the design of brain-controlled robot systems. == Major classes of models == Neurorobots can be divided into various major classes based on the robot's purpose. Each class is designed to implement a specific mechanism of interest for study. Common types of neurorobots are those used to study motor control, memory, action selection, and perception. === Locomotion and motor control === Neurorobots are often used to study motor feedback and control systems, and have proved their merit in developing controllers for robots. Locomotion is modeled by a number of neurologically inspired theories on the action of motor systems. Locomotion control has been mimicked using models or central pattern generators, clumps of neurons capable of driving repetitive behavior, to make four-legged walking robots. Other groups have expanded the idea of combining rudimentary control systems into a hierarchical set of simple autonomous systems. These systems can formulate complex movements from a combination of these rudimentary subsets. This theory of motor action is based on the organization of cortical columns, which progressively integrate from simple sensory input into a complex afferent signals, or from complex motor programs to simple controls for each muscle fiber in efferent signals, forming a similar hierarchical structure. Another method for motor control uses learned error correction and predictive controls to form a sort of simulated muscle memory. In this model, awkward, random, and error-prone movements are corrected for using error feedback to produce smooth and accurate movements over time. The controller learns to create the correct control signal by predicting the error. Using these ideas, robots have been designed which can learn to produce adaptive arm movements or to avoid obstacles in a course. === Learning and memory systems === Robots designed to test theories of animal memory systems. Many studies examine the memory system of rats, particularly the rat hippocampus, dealing with place cells, which fire for a specific location that has been learned. Systems modeled after the rat hippocampus are generally able to learn mental maps of the environment, including recognizing landmarks and associating behaviors with them, allowing them to predict the upcoming obstacles and landmarks. Another study has produced a robot based on the proposed learning paradigm of barn owls for orientation and localization based on primarily auditory, but also visual stimuli. The hypothesized method involves synaptic plasticity and neuromodulation, a mostly chemical effect in which reward neurotransmitters such as dopamine or serotonin affect the firing sensitivity of a neuron to be sharper. The robot used in the study adequately matched the behavior of barn owls. Furthermore, the close interaction between motor output and auditory feedback proved to be vital in the learning process, supporting active sensing theories that are involved in many of the learning models. Neurorobots in these studies are presented with simple mazes or patterns to learn. Some of the problems presented to the neurorobot include recognition of symbols, colors, or other patterns and execute simple actions based on the pattern. In the case of the barn owl simulation, the robot had to determine its location and direction to navigate in its environment. === Action selection and value systems === Action selection studies deal with negative or positive weighting to an action and its outcome. Neurorobots can and have been used to study simple ethical interactions, such as the classical thought experiment where there are more people than a life raft can hold, and someone must leave the boat to save the rest. However, more neurorobots used in the study of action selection contend with much simpler persuasions such as self-preservation or perpetuation of the population of robots in the study. These neurorobots are modeled after the neuromodulation of synapses to encourage circuits with positive results. In biological systems, neurotransmitters such as dopamine or acetylcholine positively reinforce neural signals that are beneficial. One study of such interaction involved the robot Darwin VII, which used visual, auditory, and a simulated taste input to "eat" conductive metal blocks. The arbitrarily chosen good blocks had a striped pattern on them while the bad blocks had a circular shape on them. The taste sense was simulated by conductivity of the blocks. The robot had positive and negative feedbacks to the taste based on its level of conductivity. The researchers observed the robot to see how it learned its action selection behaviors based on the inputs it had. Other studies have used herds of small robots which feed on batteries strewn about the room, and communicate its findings to other robots. === Sensory perception === Neurorobots have also been used to study sensory perception, particularly vision. These are primarily systems that result from embedding neural models of sensory pathways in automatas. This approach gives exposure to the sensory signals that occur during behavior and also enables a more realistic assessment of the degree of robustness of the neural model. It is well known that changes in the sensory signals produced by motor activity provide useful perceptual cues that are used extensively by organisms. For example, researchers have used the depth information that emerges during replication of human head and eye movements to establish robust representations of the visual scene. == Biological robots == Biological robots are not officially neurorobots in that they are not neurologically inspired AI systems, but actual neuron tissue wired to a robot. This employs the use of cultured neural networks to study brain development or neural interactions. These typically consist of a neural culture raised on a multielectrode array (MEA), which is capable of both recording the neural activity and stimulating the tissue. In some cases, the MEA is connected to a computer which presents a simulated environment to the brain tissue and translates brain activity into actions in the simulation, as well as providing sensory feedback The ability to record neural activity gives researchers a window into a brain, which they can use to learn about a number of the same issues neurorobots are used for. An area of concern with the biological robots is ethics. Many questions are raised about how to treat such experiments. The central question concerns consciousness and whether or not the rat brain experiences it. There are many theories about how to define consciousness. == Implications for neuroscience == Neuroscientists benefit from neurorobotics because it provides a blank slate to test various possible methods of brain function in a controlled and testable environment. While robots are more simplified versions of the systems they emulate, they are more specific, allowing more direct testing of the issue at hand. They also have the benefit of being accessible at all times, while it is more difficult to monitor large portions of a brain while the human or animal is active, especially individual neurons. The development of neuroscience has produced neural treatments. These include pharmaceuticals and neural rehabilitation. Progress is dependent on an intricate understanding of the brain and how exactly it functions. It is difficult to study the brain, especially in humans, due to the danger associated with cranial surgeries. Neurorobots can improved the range of tests and experiments that can be performed in the study of neural processes.

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  • TowIt

    TowIt

    "TowIt" is a free, global, cross-platform mobile app, website, and Web API that allows civilians to report parking violations and dangerous driving in real-time. The mission is to remove the barriers required to make cities effectively fight and deter bad parking and dangerous driving habits. The company ultimately aims to better existing social controls in order to drive necessary behavioral change through increased education, real-time reporting, optimized enforcement, as well as the resulting reactivity. == User base and adoption == The application has users reporting vehicular infractions in upwards of 30 countries. The top reporting countries are: Portugal, Canada, United States of America and Australia. Users have adopted TowIt for a variety of reasons, usually central to their geographical location and the prominent offences in those specific areas. For instance, the majority of Portuguese reports are cars parked on sidewalks, footpaths and pedestrian crossings, Australian reports are largely focused on the abuse of disabled parking spaces, and in Toronto or San Francisco users generally capture cars parked in bicycle lanes. == Functions == === Data collection === TowIt gathers data on individual parking offences, the prominence of various offence types, as well as recurring offenders. This allows the company to identify trends and hotspots in order to take action against problem vehicles, as well as to help improve urban planning, traffic congestion and gridlock management. Individuals modify or improve an aspect of their behavior in response to their awareness of being observed, theoretically more so when demonstrating selfishness, egocentrism, narcissism and anti-social behavior. The company states that by becoming a user, one can "help TowIt relieve congestion, reduce collisions, open up economies, improve the environment and enhance the lives of urban residents and suburban commuters alike". The company has acknowledged that there are numerous legislative changes that would be required to integrate with governments at any level in many countries. A simple three-step process allows users to take a photo of an offending vehicle and subsequently verifying the offending vehicle's license plate information before submitting by tapping the TowIt (submit) button. Photographical evidence can only be captured with the camera from within the TowIt application. An Internet connection is required. The company has stated that this was purposefully done for quality control and report validation purposes. Users may only submit and view their own report history on either the iOS or Android applications. Globally submitted reports are displayed uncensored and in aggregate only on the Android application and the TowIt website. The "Global Feed" feature was removed from iOS (see iTunes Connect Acceptance Issues). TowIt's back-end automatically geotags the report and compares it to local parking by-law data, including by-law types, locations, times, side(s) of street, etc.- where available. Valid reports are posted to the global feed, to the TowIt website, and passed on to municipalities and police for enforcement (where connected). === Technologies used under license === TowIt currently utilizes the following software or software libraries under license: AngularJS, Apache Cordova, Apple iTunes Store EULA, Chart.js, Google Play Distribution Agreement, Ionic Framework, MongoDB, Moment.js, Python 2.7, Python Flask, and jQuery. == Company history == The TowIt application was conceived by Michael Duncan McArthur on December 5, 2014, as a response to Toronto Mayor John Tory's election mandate to "get this city moving". The application was announced via TowIt's official Twitter page on January 6, 2015. After the initial public announcement, Michael & Gregory were contacted by members of John Tory's staff on January 8, 2015, and invited to demo a prototype at Toronto City Hall on January 12, 2015. The two were also invited to meet with Toronto Councillor Norm Kelly, in his City Hall office, for a subsequent demo of the live Android application on January 28, 2015. A similar meeting and demo took place with members of the Traffic Services department of Toronto Police Service on February 2, 2015. Michael & Gregory teamed up with friends and Toronto-based developers Dae-Seon Moon, Jesse Malone, and Marcus Veres to complete the prototype in time to meet the city's imposed demo deadline and to launch the initial Android version of the application. TowIt officially launched on the Android platform on January 16, 2015. A subsequent iOS launch took place on March 19, 2015. === iTunes connect acceptance issues === The iOS version of the application was delayed for approximately two months, only after significant deliberation with Apple's iTunes Connect review board around (as then stated) rule: "14.1 - Any App that is defamatory, offensive, mean-spirited, or likely to place the targeted individual or group in harm's way will be rejected." The result was having to remove the "Global Feed" feature from the iOS platform, in which civilian users could view all recent reports from within the application. This feature still exists on the Android platform. === Business and legal === TowIt engaged Wildeboer Dellelce, one of Canada's leading business law and transactional corporate finance law firms, on January 17, 2015. The company filed for incorporation as "TowIt Solutions Inc." by both Michael & Gregory in the Canadian province of Ontario on January 22, 2015. TowIt continues to operate under a Freemium business model. The company is 100% bootstrapped and has received no outside investment to date. TowIt was accepted into the MaRS Discovery District's Venture Services program on March 4, 2015. === Lobbyist registration === After receiving initial press coverage in January and February 2015, an unknown entity reported Michael & Gregory's initial communications with city staff to the City of Toronto's Lobbyist Registrar. This complaint resulted in legal threats of fines received on February 10, 2015, for apparently and unknowingly breaking municipal lobbying by-laws. These fines (of up to $100,000) were eventually withdrawn after Michael & Gregory immediately provided all records of communication with city officials and registered as lobbyists in the City of Toronto on the subjects of By-law / Regulation, Parking, and Technology. Their registration was accepted by the Lobbyist Registrar on March 6, 2015. However, communication with Toronto city staff was reduced greatly as a result, which the company believes may have been the desired intent of the original complaint. === Outreach and activism === TowIt encourages its global user base to reach out to their local government representatives to promote the app at the users' own will. This tactic is used not only to demonstrate grassroots support, but also to avoid future lobbying issues. On June 2, 2015, the company officially partnered with Australian campaign "No Permit No Park" who advocate for the creation of inclusive communities. == Reception == The Best Planning Apps for 2016 by Planetizen, 5 Toronto apps you should be using by Indie88, 12 Best Apps Made In Canada by TechVibes.

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  • Prompt engineering

    Prompt engineering

    Prompt engineering is the process of structuring natural language inputs (known as prompts) to produce specified outputs from a generative artificial intelligence (GenAI) model. Context engineering is the related area of software engineering that focuses on the management of non-prompt contexts supplied to the GenAI model, such as metadata, API tools, and tokens. It can also be defined as the practice of designing and refining input instructions given to a generative AI model to produce more accurate, relevant, or useful outputs. Effective prompt engineering involves understanding how a model interprets language, and may include techniques such as few-shot prompting, chain-of-thought prompting, and role assignment. It is increasingly considered a skill for working with large language models (LLMs) in both research and professional contexts. During the 2020s AI boom, prompt engineering became regarded as a business capability across corporations and industries. Employees with the title prompt engineer were hired to create prompts that would increase productivity and efficacy, although the individual title has since lost traction amid AI models that produce better prompts than humans and corporate training in prompting for general employees. Common prompting techniques include multi-shot, chain-of-thought, and tree-of-thought prompting, as well as the use of assigning roles to the model. Automated prompt generation methods, such as retrieval-augmented generation (RAG), provide for greater accuracy and a wider scope of functions for prompt engineers. Prompt injection is a type of cybersecurity attack that targets machine learning models through malicious prompts. == Terminology == The Oxford English Dictionary defines prompt engineering as "The action or process of formulating and refining prompts for an artificial intelligence program, algorithm, etc., in order to optimize its output or to achieve a desired outcome; the discipline or profession concerned with this." In 2023, prompt ("an instruction given to an artificial intelligence program, algorithm, etc., which determines or influences the content it generates") was the runner-up to Oxford's word of the year. === Prompt === A prompt is some natural language text that describes and prescribes the task that an artificial intelligence (AI) should perform. A prompt for a text-to-text language model can be a query, a command, or a longer statement referencing context, instructions, and conversation history. The process of prompt engineering may involve designing clear queries, refining wording, providing relevant context, specifying the style of output, and assigning a character for the AI to mimic in order to guide the model toward more accurate, useful, and consistent responses. When communicating with a text-to-image or a text-to-audio model, a typical prompt contains a description of a desired output such as "a high-quality photo of an astronaut riding a horse" or "Lo-fi slow BPM electro chill with organic samples". Prompt engineering may be applied to text-to-image models to achieve a desired subject, style, layout, lighting, and aesthetic. === Techniques === Common terms used to describe various specific prompt engineering techniques include chain-of-thought, tree-of-thought, and retrieval-augmented generation (RAG). A 2024 survey of the field identified over 50 distinct text-based prompting techniques, 40 multimodal variants, and a vocabulary of 33 terms used across prompting research, highlighting a present lack of standardised terminology for prompt engineering. Vibe coding is an AI-assisted software development method where a user prompts an LLM with a description of what they want and lets it generate or edit the code. In 2025, "vibe coding" was the Collins Dictionary word of the year. === Context engineering === Context engineering is a related process that focuses on the context elements that accompany user prompts, which include system instructions, retrieved knowledge, tool definitions, conversation summaries, and task metadata. Context engineering is performed to improve reliability, provenance and token efficiency in production LLM systems. The concept emphasises operational practices such as token budgeting, provenance tags, versioning of context artifacts, observability (logging which context was supplied), and context regression tests to ensure that changes to supplied context do not silently alter system behaviour. == Rationale == Research has found that the performance of large language models (LLMs) is highly sensitive to choices such as the ordering of examples, the quality of demonstration labels, and even small variations in phrasing. In some cases, reordering examples in a prompt produced accuracy shifts of more than 40 percent. === In-context learning === A model's ability to temporarily learn from prompts is known as in-context learning. In-context learning is an emergent ability of large language models. It is an emergent property of model scale, meaning that breaks in scaling laws occur, leading to its efficacy increasing at a different rate in larger models than in smaller models. Unlike training and fine-tuning, which produce lasting changes, in-context learning is temporary. Training models to perform in-context learning can be viewed as a form of meta-learning, or "learning to learn". === Prompting to estimate model sensitivity === Research consistently demonstrates that LLMs are highly sensitive to subtle variations in prompt formatting, structure, and linguistic properties. Some studies have shown up to 76 accuracy points across formatting changes in few-shot settings. Linguistic features significantly influence prompt effectiveness—such as morphology, syntax, and lexico-semantic changes—which meaningfully enhance task performance across a variety of tasks. Clausal syntax, for example, improves consistency and reduces uncertainty in knowledge retrieval. This sensitivity persists even with larger model sizes, additional few-shot examples, or instruction tuning. To address sensitivity of models and make them more robust, several evaluative methods have been proposed. FormatSpread facilitates systematic analysis by evaluating a range of plausible prompt formats, offering a more comprehensive performance interval. Similarly, PromptEval estimates performance distributions across diverse prompts, enabling robust metrics such as performance quantiles and accurate evaluations under constrained budgets. == Prompting techniques == === Multi-shot === A prompt may include a few examples for a model to learn from in context, an approach called few-shot learning. For example, the prompt may ask the model to complete "maison → house, chat → cat, chien →", with the expected response being dog. === Chain-of-thought === Chain-of-thought (CoT) prompting is a technique that allows large language models (LLMs) to solve a problem as a series of intermediate steps before giving a final answer. In 2022, Google Brain reported that chain-of-thought prompting improves reasoning ability by inducing the model to answer a multi-step problem with steps of reasoning that mimic a train of thought. Chain-of-thought techniques were developed to help LLMs handle multi-step reasoning tasks, such as arithmetic or commonsense reasoning questions. When applied to PaLM, a 540 billion parameter language model, according to Google, CoT prompting significantly aided the model, allowing it to perform comparably with task-specific fine-tuned models on several tasks, achieving state-of-the-art results at the time on the GSM8K mathematical reasoning benchmark. It is possible to fine-tune models on CoT reasoning datasets to enhance this capability further and stimulate better interpretability. As originally proposed by Google, each CoT prompt is accompanied by a set of input/output examples—called exemplars—to demonstrate the desired model output, making it a few-shot prompting technique. However, according to a later paper from researchers at Google and the University of Tokyo, simply appending the words "Let's think step-by-step" was also effective, which allowed for CoT to be employed as a zero-shot technique. ==== Self-consistency ==== Self-consistency performs several chain-of-thought rollouts, then selects the most commonly reached conclusion out of all the rollouts. === Tree-of-thought === Tree-of-thought prompting generalizes chain-of-thought by generating multiple lines of reasoning in parallel, with the ability to backtrack or explore other paths. It can use tree search algorithms like breadth-first, depth-first, or beam. === Text-to-image prompting === In 2022, text-to-image models like DALL-E 2, Stable Diffusion, and Midjourney were released to the public. These models take text prompts as input and use them to generate images. Early text-to-image models typically do not understand negation, grammar and sentence structure in the same way as large language models, and may thus requi

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  • Hierarchical Risk Parity

    Hierarchical Risk Parity

    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)} .

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