In August 2024, three class-action lawsuits were filed against National Public Data along with over 14 complaints filed in federal court, claiming that the company permitted hackers to steal sensitive private information covering millions of individuals. The theft was alleged to have occurred in April 2024. One of the lawsuits specifically claims that in April, a hacker going by the moniker "USDoD" posted a notice on the dark web, offering the data for sale at the price of US$3.5 million. The information stolen is alleged to include 2.9 billion records containing full names, current and past addresses, Social Security numbers, dates of birth, and telephone numbers. The stolen data contains records for people in the US, UK, and Canada. National Public Data confirmed on August 16, 2024, there was a breach originating from someone trying to breach their systems since December 2023, with the breach occurring from April 2024 and over the next few months. The company also confirmed that 2.9 billion records were obtained, though they were still working to determine how many people were affected by the breach, and were working with law enforcement to identify the hacker. == Jerico Pictures == Jerico Pictures, Inc., doing business as National Public Data, was a data broker company that performed employee background checks. Their primary service was collecting information from public data sources, including criminal records, addresses, and employment history, and offering that information for sale. On October 2, 2024, Jerico Pictures filed for Chapter 11 bankruptcy as it currently faces over a dozen lawsuits over the breach, and is potentially liable "for credit monitoring for hundreds of millions of potentially impacted individuals." In December 2024, National Public Data shut down, showing a closure notice on its website.
Meta-Labeling
Meta-labeling, also known as corrective AI, is a machine learning (ML) technique utilized in quantitative finance to enhance the performance of investment and trading strategies, developed in 2017 by Marcos López de Prado at Guggenheim Partners and Cornell University. The core idea is to separate the decision of trade direction (side) from the decision of trade sizing, addressing the inefficiencies of simultaneously learning both side and size predictions. The side decision involves forecasting market movements (long, short, neutral), while the size decision focuses on risk management and profitability. It serves as a secondary decision-making layer that evaluates the signals generated by a primary predictive model. By assessing the confidence and likely profitability of those signals, meta-labeling allows investors and algorithms to dynamically size positions and suppress false positives. == Motivation == Meta-labeling is designed to improve precision without sacrificing recall. As noted by López de Prado, attempting to model both the direction and the magnitude of a trade using a single algorithm can result in poor generalization. By separating these tasks, meta-labeling enables greater flexibility and robustness: Enhances control over capital allocation. Reduces overfitting by limiting model complexity. Allows the use of interpretability tools and tailored thresholds to manage risk. Enables dynamic trade suppression in unfavorable regimes. == Applications == Meta-labeling has been applied in a variety of financial ML contexts, including: Algorithmic trading: Filtering and sizing trades to reduce false positives. Portfolio optimization: Scaling exposure across multiple signals with differing confidence levels. Risk management: Dynamically disabling strategies in adverse market conditions. Model validation: Interpreting when and why a model may be underperforming due to regime shifts. == General architecture == Meta-labeling decouples two core components of systematic trading strategies: directional prediction and position sizing. The process involves training a primary model to generate trade signals (e.g., buy, sell, or hold) and then training a secondary model to determine whether each signal is likely to lead to a profitable trade. The second model outputs a probability that is interpreted as the confidence in the forecast, which can be used to adjust the position size or to filter out unreliable trades. Meta-labeling is typically implemented as a three-stage process: Primary model (M1): Predicts the direction or label of a financial outcome using features such as market prices, returns, or volatility indicators. A typical output is directional, e.g., Y ∈ {−1,0,1}, representing short, neutral, or long positions. Secondary model (M2): A binary classifier trained to predict whether the primary model's prediction will be profitable. The target variable is a binary meta-label F ∈ { 0 , 1 } {\displaystyle F\in \{0,1\}} . Inputs can include features used in the primary model, performance diagnostics, or market regime data. Position sizing algorithm (M3): Translates the output probability of the secondary model into a position size. Higher confidence scores result in larger allocations, while lower confidence leads to reduced or zero exposure. === Stage 1: Forecasting side === Primary model architecture Figure 1 Figure 1 presents the architecture of a primary model. It focuses on forecasting the side of the trade. Following the example, this model (M1) takes in input data – such as open-high-low-close data and determines the side of the position to take: a negative number is a short position, and positive number is a long position, the range is set between −1 and 1 (the closer it is to −1 or 1, the stronger the models conviction is). When training the model, the labels are −1 and 1, based on the direction of forward returns for some predefined investment horizon. The researcher may decide to apply a recall check (τ: "Tau") by setting a minimum threshold that the initial output needs to be to qualify of a short or long position (if the threshold is not met, no side forecast is predicted, leading to closing of any open positions), this leads to the primary model output which is one of three possible side forecasts: −1, 0, or 1. The primary model also generates evaluation data which can be used by the secondary model, to improve performance of size forecasts. Some examples of evaluation data include rolling accuracy, F1, recall, precision, and AUC scores. === Stage 2: Filtering out false positives === General meta-labeling architecture Figure 2 Next comes the phase of filtering out false positives, by applying a secondary machine learning model (M2), which is a binary classifier trained to determine if the trade will be profitable or not. The model takes as input four general groupings of data: General input data which is predictive of a false positive. For example the last 30 days rolling volatility of the underlying asset. Evaluation data. Market state and regime data, one may find that macro economic data or clustering the market into regimes may help as specific trading strategies are known to perform better in particular regimes. Example: momentum based strategies perform best in periods with low volatility and strong directional moves. Primary models initial input which is a value between −1 and 1. This highlights the strength of the primary models conviction. The output of the model is a value between −1 and 1 (if using a Tanh function) which will indicate the strength of the conviction that a short or long position is profitable, or it could simply be between 0 and 1 (using a sigmoid function) if one only wanted to know if it made money or not. This output allows filtering out trades that are likely to lead to losses. One could stop at this point or use the outputs of the secondary model as inputs to a position sizing algorithm (M3) which could further enhance strategy performance metrics by translating the output probability of the secondary model into a position size. Higher confidence scores result in larger allocations, while lower confidence leads to reduced or zero exposure. === Stage 3: Optimizing position sizes === ==== Position sizing methods (M3) ==== Various algorithms have been proposed for transforming predicted probabilities into trade sizes: All-or-nothing: Allocate 100% of capital if the probability exceeds a predefined threshold (e.g., 0.5); otherwise, do not trade. Model confidence: Use the probability score directly as the fraction of capital allocated. Linear scaling: Rescale the model's probabilities using min-max normalization based on the training data. Normal CDF (NCDF): Use a normal cumulative distribution function applied to a z-statistic derived from the predicted probability. Empirical CDF (ECDF): Rank probabilities based on their percentile in the training data to ensure relative allocation. Sigmoid Optimal Position Sizing (SOPS): Applies a smooth non-linear sigmoid transformation optimized to maximize risk-adjusted returns (Sharpe ratio). ==== Model calibration ==== Each machine learning algorithm used in meta-labeling tends to produce outputs with different characteristic distributions; for example, some are approximately normally distributed, whereas others exhibit a pronounced U-shape, concentrating probabilities near the extremes. Due to these varying distributions, simply summing the outputs of different models can inadvertently lead to uneven weighting of signals, biasing trade decisions. To address this, model calibration techniques are essential to adjust the predicted probabilities towards frequentist probabilities, ensuring that model outputs reflect true likelihoods more accurately. Two common calibration techniques are: Platt scaling (Sigmoid scaling): Suitable for correcting S-shaped calibration plots typically produced by models such as support vector machines (SVMs). Isotonic regression: Fits a non-decreasing step function to probabilities and is effective particularly with larger datasets, though it can sometimes lead to overfitting. Transforming predictions to frequentist probabilities is crucial as it provides probabilistic outputs that are directly interpretable as the actual likelihood of an event occurring. Such calibration significantly enhances the effectiveness of fixed position sizing methods, reducing maximum drawdowns and increasing risk-adjusted returns. However, calibration has less impact on position sizing methods that directly estimate parameters from the training data, such as ECDF and SOPS, suggesting that calibration is a critical step mainly for fixed methods that rely heavily on raw model outputs. =
Danilo McGarry
Danilo McGarry (born 1985) is a British tech executive, writer, and speaker who has led AI initiatives in finance and healthcare. == Early life and education == Danilo McGarry was born in 1985. He received a Bachelor of Science (BSc) with honors in Business Management from the University of Bath. == Career == McGarry began his career in technology and financial services, with positions at companies including Motorola, JPMorgan Chase, and BNP Paribas. He later joined the Royal Bank of Canada (RBC) as an analyst and later became a director, where he led transformation initiatives involving robotic process automation (RPA) in the bank's capital markets operations. McGarry subsequently moved into leadership roles focused on AI. At Citigroup, he served as Head of Artificial Intelligence and Machine Learning, where he launched an AI-driven robotics and automation initiative. At UnitedHealth Group (UHG), he held a senior role in the company's automation program, which utilized a large fleet of software robots in its healthcare operations. In December 2019, McGarry was appointed Global Head of AI & Automation at Alter Domus, a multinational financial services firm. In this role, he established a new AI and automation department. He left the firm in late 2023 to establish his businesses. In 2025, the Chartered Institute of Personnel and Development (CIPD) appointed him as its strategic adviser on artificial intelligence.
Drools
Drools is a business rule management system (BRMS) with a forward and backward chaining inference-based rules engine, more correctly known as a production rule system, using an enhanced implementation of the Rete algorithm. Drools supports the Java Rules Engine API (Java Specification Request 94) standard for its business rule engine and enterprise framework for the construction, maintenance, and enforcement of business policies in an organization, application, or service. == Drools in Apache Kie == Drools, as part of the Kie Community has entered Apache Incubator in January, 2023. == Red Hat Decision Manager == Red Hat Decision Manager (formerly Red Hat JBoss BRMS) is a business rule management system and reasoning engine for business policy and rules development, access, and change management. JBoss Enterprise BRMS is a productized version of Drools with enterprise-level support available. JBoss Rules is also a productized version of Drools, but JBoss Enterprise BRMS is the flagship product. Components of the enterprise version: JBoss Enterprise Web Platform – the software infrastructure, supported to run the BRMS components only JBoss Enterprise Application Platform or JBoss Enterprise SOA Platform – the software infrastructure, supported to run the BRMS components only Business Rules Engine – Drools Expert using the Rete algorithm and the Drools Rule Language (DRL) Business Rules Manager – Drools Guvnor - Guvnor is a centralized repository for Drools Knowledge Bases, with rich web-based GUIs, editors, and tools to aid in the management of large numbers of rules. Business Rules Repository – Drools Guvnor Drools and Guvnor are JBoss Community open source projects. As they are mature, they are brought into the enterprise-ready product JBoss Enterprise BRMS. Components of the JBoss Community version: Drools Guvnor (Business Rules Manager) – a centralized repository for Drools Knowledge Bases Drools Expert (rule engine) – uses the rules to perform reasoning Drools Flow (process/workflow), or jBPM 5 – provides for workflow and business processes Drools Fusion (event processing/temporal reasoning) – provides for complex event processing Drools Planner/OptaPlanner (automated planning) – optimizes automated planning, including NP-hard planning problems == Example == This example illustrates a simple rule to print out information about a holiday in July. It checks a condition on an instance of the Holiday class, and executes Java code if that condition is true. The purpose of dialect "mvel" is to point the getter and setters of the variables of your Plain Old Java Object (POJO) classes. Consider the above example, in which a Holiday class is used and inside the circular brackets (parentheses) "month" is used. So with the help of dialect "mvel" the getter and setters of the variable "month" can be accessed. Dialect "java" is used to help us write our Java code in our rules. There is one restriction or characteristic on this. We cannot use Java code inside the "when" part of the rule but we can use Java code in the "then" part. We can also declare a Reference variable $h1 without the $ symbol. There is no restriction on this. The main purpose of putting the $ symbol before the variable is to mark the difference between variables of POJO classes and Rules.
ComfyUI
ComfyUI is an open source, node-based program that allows users to generate images from a series of text prompts. It uses free diffusion models such as Stable Diffusion as the base model for its image capabilities combined with other tools such as ControlNet and LCM Low-rank adaptation with each tool being represented by a node in the program. == History == ComfyUI was released on GitHub in January 2023. According to comfyanonymous, the creator, a major goal of the project was to improve on existing software designs in terms of the user interface. The creator had been involved with Stability AI but by 3 June 2024 that involvement had ended and an organization called Comfy Org had been created along with the core developers. In July 2024, Nvidia announced support for ComfyUI within its RTX Remix modding software. In August 2024, support was added for the Flux diffusion model developed by Black Forest Labs, and Comfy Org joined the Open Model Initiative created by the Linux Foundation. As of Sept 2025, the project has 89.2k stars on GitHub. ComfyUI is one of the most popular user interfaces for Stable Diffusion, along with Automatic1111. == Features == ComfyUI's main feature is that it is node based. Each node has a function such as "load a model" or "write a prompt". The nodes are connected to form a control-flow graph called a workflow. When a prompt is queued, a highlighted frame appears around the currently executing node, starting from "load checkpoint" and ending with the final image and its save location. Workflows commonly consist of tens of nodes, forming a complex directed acyclic graph. Node types include loading a model, specifying prompts, samplers, schedulers, VAE decoders, face restoration and upscaling models, LoRAs, embeddings, and ControlNets. Several samplers are supported, such as Euler, Euler_a, dpmpp_2m_sde and dpmpp_3m_sde. Workflows can be saved to a file, allowing users to re-use node workflows and share them with other users. The file format for the workflows is in JSON and can be embedded in the generated images. Users have also created custom extensions to the base system which are exposed as new nodes, such as the extension for AnimateDiff, which aims to create videos. ComfyUI has been described as more complex compared to other diffusion UIs such as Automatic1111. A default node group is also included with the program. As of December 2024, 1,674 nodes were supported. ComfyUI Supports multiple text-to-image models including, Stable Diffusion, Flux and Tencent's Hunyuan-DiT, as well as custom models from Civitai like Pony. == LLMVision extension compromise == In June 2024, a hacker group called "Nullbulge" compromised an extension of ComfyUI to add malicious code to it. The compromised extension, called ComfyUI_LLMVISION, was used for integrating the interface with AI language models GPT-4 and Claude 3, and was hosted on GitHub. Nullbulge hosted a list of hundreds of ComfyUI users' login details across multiple services on its website, while users of the extension reported receiving numerous login notifications. vpnMentor conducted security research on the extension and claimed it could "steal crypto wallets, screenshot the user’s screen, expose device information and IP addresses, and steal files that contain certain keywords or extensions". Nullbulge's website claims they targeted users who committed "one of our sins", which included AI-art generation, art theft, promoting cryptocurrency, and any other kind of theft from artists such as from Patreon. They claimed that they were "a collective of individuals who believe in the importance of protecting artists' rights and ensuring fair compensation for their work" and that they believed that "AI-generated artwork is detrimental to the creative industry and should be discouraged".
Artificial Inventor Project
The Artificial Inventor Project (AIP) is a global legal initiative headed by Professor Ryan Abbott dedicated to pursuing intellectual property (IP) rights for inventions and creative works generated autonomously by artificial intelligence (AI) systems without traditional human inventorship or authorship. The project coordinates a series of pro bono test cases worldwide, aiming to prompt law reform and public debate on how IP law should accommodate non-human creators. == History == In 2019, AIP filed patent applications in multiple jurisdictions, including the United States, United Kingdom, European Patent Office, Australia, Switzerland, and South Africa, naming the AI system DABUS (Device for the Autonomous Bootstrapping of Unified Sentience), created by Stephen Thaler, as the inventor. The aim was to challenge legal norms that require inventors to be natural persons and highlight pressing policy questions about AI-generated innovation and IP regimes. == Legal proceedings by jurisdiction == === Australia === In July 2021, a Federal Court of Australia judge (Beach J) ruled that AI can be considered an inventor under the Patents Act 1990, ordering IP Australia to reinstate the relevant patent. However, the full court then overturned this ruling on appeal and denied further review. === European Patent Office === The EPO Board of Appeal determined in 2022 that only a human inventor may be named, rendering DABUS‑based applications unacceptable. === South Africa === In 2021, a patent was granted listing DABUS as the inventor. As South Africa’s procedural system does not involve substantive inventorship review, the grant proceeded on formal grounds alone. === Switzerland === On 26 June 2025, the Swiss Federal Administrative Court ruled that artificial intelligence systems such as DABUS cannot be listed as inventors on patent applications. The court upheld the existing practice of the Swiss Federal Institute of Intellectual Property (IPI), affirming that only natural persons may be recognized as inventors under Swiss patent law. === United Kingdom === In December 2023, the UK Supreme Court unanimously held that AI systems cannot be legally recognized as inventors, affirming that "an inventor must be a person" under current British law. === United States === In Thaler v. Hirshfeld (2021), a U.S. federal court agreed with the USPTO that inventors must be natural persons, rejecting the DABUS application and setting a precedent consistent with existing statute and administrative policy. == Criticism and impact == The project has fueled substantial discourse. Critics caution that allowing AI inventorship may complicate notions of accountability and ownership. Proponents argue that legal recognition must evolve to avoid disincentivizing innovation produced by AI and to maintain honesty about the true source of invention.
Ian Goodfellow
Ian J. Goodfellow (born 1987) is an American computer scientist, engineer, and executive, most noted for his work on artificial neural networks and deep learning. He is a research scientist at Google DeepMind, was previously employed as a research scientist at Google Brain and director of machine learning at Apple as well as one of the first employees at OpenAI, and has made several important contributions to the field of deep learning, including the invention of the generative adversarial network (GAN). Goodfellow co-wrote, as the first author, the textbook Deep Learning (2016) and wrote the chapter on deep learning in the authoritative textbook of the field of artificial intelligence, Artificial Intelligence: A Modern Approach (used in more than 1,500 universities in 135 countries). == Education == Goodfellow obtained his BSc and MSc in computer science from Stanford University under the supervision of Andrew Ng, and his PhD in machine learning from the Université de Montréal in February 2015, under the supervision of Yoshua Bengio and Aaron Courville. Goodfellow's thesis is titled Deep learning of representations and its application to computer vision. == Career == After graduation, Goodfellow joined Google as part of the Google Brain research team. In March 2016, he left Google to join the newly founded OpenAI research laboratory. 11 months later, in March 2017, Goodfellow returned to Google Research, but left again in 2019. In 2019, Goodfellow joined Apple as director of machine learning in the Special Projects Group. He resigned from Apple in April 2022 to protest Apple's plan to require in-person work for its employees. Shortly after, Goodfellow then joined Google DeepMind as a research scientist. In 2025, Goodfellow left Google. As of July 2026, based on information on Goodfellow's LinkedIn profile, he is co-founding a startup company. == Research == Goodfellow is best known for inventing generative adversarial networks (GANs), using deep learning to generate images. This approach uses two neural networks to competitively improve an image's quality. A “generator” network creates a synthetic image based on an initial set of images such as a collection of faces. A “discriminator” network tries to determine whether images are authentic or created by the generator. The generate-detect cycle is repeated. For each iteration, the generator and the discriminator use the other's feedback to improve or detect the generated images, until the discriminator can no longer distinguish between generated and authentic images. However, GANs have also been used to create deepfakes. At Google, Goodfellow developed a system enabling Google Maps to automatically transcribe addresses from photos taken by Street View cars and demonstrated security vulnerabilities of machine learning systems. == Recognition == In 2017, Goodfellow was cited in MIT Technology Review's 35 Innovators Under 35. In 2019, he was included in Foreign Policy's list of 100 Global Thinkers.