Prof. Zhisheng Ye delivered a talk on “Optimal Abort Policy for Mission-Critical Systems under Imperfect Condition Monitoring”

While most on-demand mission-critical systems are engineered to be reliable to support critical tasks, occasional failures may still occur during missions. To increase system survivability, a common practice is to abort the mission before an imminent failure. We consider optimal mission abort for a system whose deterioration follows a general three-state (normal, defective, failed) semi-Markov chain. The failure is assumed self-revealed, while the healthy and defective states have to be predicted from imperfect condition monitoring data. Due to the non-Markovian process dynamics, optimal mission abort for this partially observable system is an intractable stopping problem. For a tractable solution, we introduce a novel tool of Erlang mixtures to approximate non-exponential sojourn times in the semi-Markov chain. This allows us to approximate the original process by a surrogate continuous-time Markov chain whose optimal control policy can be solved through a partially observable Markov decision process (POMDP). We show that the POMDP optimal policies converge almost surely to the optimal abort decision rules when the Erlang rate parameter diverges. This implies that the expected cost by adopting the POMDP solution converges to the optimal expected cost. Next, we provide comprehensive structural results on the optimal policy of the surrogate POMDP. Based on the results, we develop a modified point-based value iteration algorithm to numerically solve the surrogate POMDP. We further consider mission abort in a multi-task setting where a system executes several tasks consecutively before a thorough inspection. Through a case study on an unmanned aerial vehicle, we demonstrate the capability of real-time implementation of our model, even when the condition-monitoring signals are generated with high frequency.

Prof. Cheng-Lin Liu gave a talk on “Open-World Learning: Problems and Strategies”

Traditional methods of pattern classification and machine learning usually assume closed world: the input pattern falls within a fixed set of classes. However, in open world, the input pattern can be of either known or unknown classes, or be outlier. While in training, the data may emerge incrementally, and the new dataset contain samples or with known or unknown classes, either labeled or unlabeled, or be outlier. Such open-world learning scenario involves multiple challenges including out-of-distribution (OOD) detection, confidence estimation, unlabeled data exploitation, catastrophic forgetting and novel category discovery. The challenges are attacked by combining techniques such as generative modeling, regularization, knowledge distillation, and hybrid learning. This talk will outline the status of open-world pattern recognition, identify the main challenges of open-world learning and main strategies, and present some recent progress achieved in my group: open-set recognition, class-incremental learning, and generalized category discovery.

Prof. Olga Fink gave a talk on “Integrating Domain Knowledge and Physics in AI: Harnessing Inductive Bias for Advanced PHM Solutions”

In the field of prognostics and health management, the integration of machine learning has enabled the development of advanced predictive models that ensure the reliable and safe operation of complex assets. However, challenges such as sparse, noisy, and incomplete data necessitate the integration of prior knowledge and inductive bias to improve model generalization, interpretability, and robustness.

Inductive bias, defined as the set of assumptions embedded in machine learning models, plays a crucial role in guiding these models to generalize effectively from limited training data to real-world scenarios. In PHM applications, where physical laws and domain-specific knowledge are fundamental, the use of inductive bias can significantly enhance a model’s ability to predict system behavior under diverse operating conditions. By embedding physical principles into learning algorithms, inductive bias reduces the reliance on large datasets, ensures that model predictions are physically consistent, and enhances both the generalizability and interpretability of the models.

This talk will explore various forms of inductive bias tailored for PHM systems, with a particular focus on heterogenous-temporal graph neural networks, as well as physics-informed and algorithm-informed graph neural networks. These approaches will be applied to virtual sensing, modelling multi-body dynamical systems and anomaly detection.

Prof. Tong Wang gave a talk on “Using Advanced LLMs to Enhance Smaller LLMs: An Interpretable Knowledge Distillation Approach”

Large language models (LLMs) like GPT-4 or LlaMa 3 provide superior performance in complex human-like interactions. But they are costly, or too large for edge devices such as smartphones and harder to self-host, leading to security and privacy concerns. This paper introduces a novel interpretable knowledge distillation approach to enhance the performance of smaller, more economical LLMs that firms can self-host. We study this problem in the context of building a customer service agent aimed at achieving high customer satisfaction through goal-oriented dialogues. Unlike traditional knowledge distillation, where the “student” model learns directly from the “teacher” model’s responses via fine-tuning, our interpretable “strategy” teaching approach involves the teacher providing strategies to improve the student’s performance in various scenarios. This method alternates between a “scenario generation” step and a “strategies for improvement” step, creating a customized library of scenarios and optimized strategies for automated prompting. The method requires only black-box access to both student and teacher models; hence it can be used without manipulating model parameters. In our customer service application, the method improves performance, and the learned strategies are transferable to other LLMs and scenarios beyond the training set. The method’s interpretabilty helps safeguard against potential harms through human audit.

Prof. Lei Ma gave a talk on “Towards Building the Trust of Complex AI Systems in the LLM Era”

In recent years, deep learning-enabled systems have made remarkable progress, powering a surge in advanced intelligent applications. This growth and its real-world impact have been further amplified by the advent of large foundation models (e.g., LLM, Stable Diffusion). Yet, the rapid evolution of these AI systems often proceeds without comprehensive quality assurance and engineering support. This gap is evident in the integration of standards for quality, reliability, and safety assurance, as well as the need for mature toolchain support that provides systematic and explainable feedback of the development lifecycle. In this talk, I will present a high-level overview of our team’s ongoing initiatives to lay the groundwork for Trustworthy Assurance of AI Systems and its industrial applications, e.g., including (1) AI software testing and analysis, (2) our latest trustworthiness assurance efforts for AI-driven Cyber-physical systems with an emphasis on sim2real transition. (3) risk and safety assessment for large foundational models, including those akin to large language models, and vision transformers.

Prof. Bart Baesens gave a talk on “Using AI for Fraud Detection: Recent Research Insights and Emerging Opportunities”

Typically, organizations lose around five percent of their revenue to fraud. In this presentation, we explore advanced AI techniques to address this issue. Drawing on our recent research, we begin by examining cost-sensitive fraud detection methods, such as CS-Logit which integrates the economic imbalances inherent in fraud detection into the optimization of AI models. We then move on to data engineering strategies that enhance the predictive capabilities of both the data and AI models through intelligent instance and feature engineering. We also delve into network data, showcasing our innovative research methods like Gotcha and CATCHM for effective data featurization. A significant focus is placed on Explainable AI (XAI), which demystifies high-performance AI models used in fraud detection, aiding in the development of effective fraud prevention strategies. We provide practical examples from various sectors including credit card fraud, anti-money laundering, insurance fraud, tax evasion, and payment transaction fraud. Furthermore, we discuss the overarching issue of model risk, which encompasses everything from data input to AI model deployment. Throughout the presentation, the speaker will thoroughly discuss his recent research, conducted in partnership with leading global financial institutions such as BNP Paribas Fortis, Allianz, ING, and Ageas.

Prof. Yan-Fu Li gave a talk on “Recent Research Progresses on Optimal System Reliability Design”

Optimal system reliability design is an important research field in reliability engineering. Since the 1950s, extensive studies have been conducted on various aspects of this issue. This field remains highly active today due to the need to develop new generations of complex engineering systems, such as 5G telecom networks and high-performance computing clusters, which are expected to be highly reliable to meet the stringent, dynamic, and often real-time quality demands of system operators and end-users. Over the past five years, numerous new researches on optimal system reliability design have been published, addressing the theoretical challenges posed by the new engineering systems. This presentation will systematically review these works with the focus on theoretical advancements, including the models and methods for redundancy allocation problem, redundancy allocation under mixed uncertainty, joint reliability-redundancy allocation problem and joint redundancy allocation and maintenance optimization. Through analysis and discussions, we will outline future research directions.

Prof. Stefan Feuerrigel gave a talk on “Learning policies for decision-making with causal machine learning: The case of development financing”

The Sustainable Development Goals (SDGs) of the United Nations provide a blueprint of a better future by “leaving no one behind”, and, to achieve the SDGs by 2030, poor countries require immense volumes of development aid. In this work, we develop a causal machine learning framework for estimating heterogeneous treatment effects of aid disbursements that inform optimal aid allocation. We demonstrate the effectiveness of our method using data with official development aid earmarked to end HIV/AIDS in 105 countries, amounting to more than USD 5.2 billion. For this, we first show that our method successfully computes heterogeneous treatment-response curves using semi-synthetic data. Then, using real-world HIV data, we find that an optimal aid allocation suggested by our method could reduce the total number of new HIV infections compared to current allocation practice. Our findings indicate the effectiveness of causal machine learning to inform cost-efficient allocations of development aid that maximize progress towards the SDGs.

Prof. Indranil Bose gave a talk on “Toward a Cognitive Understanding of Mobile Augmented Reality”

Augmented Reality (AR) has become increasingly popular in different areas of application and is transforming the way mobile commerce is conducted through mobile apps. It imbibes the sensory experience of local presence during online browsing. We investigate the impact of AR-based presentation on sales rank of products using data from Amazon AR View. This is followed by our investigation of the impact of AR on perceived diagnosticity, perceived risk, perceived cognitive load, and emotion of users. Using a mixed-method approach, we find that the use of AR on a mobile app significantly improves sales rank, enhances perceived diagnosticity, and reduces perceived risk. These effects are greater for technology products. Additionally, we find that AR significantly increases perceived cognitive load for non-technology products. We capture various touch movements, such as pan, pinch, and rotate as well as touch pressure, in consumers’ AR interactions and find that they significantly impact the generated emotion. Our research contributes to the literature on mobile commerce and provides directions on when to use the AR interface for product presentation and how to assess consumers’ reactions to it.

Prof. Sankaran Mahadevan gave a talk on probabilistic Digital Twins for System Monitoring and Decision-Making

The digital twin paradigm integrates information obtained from sensor data, system physics models, as well as the operational and inspection/maintenance/repair history of a physical system or process of interest. As more and more data become available, the resulting updated model becomes increasingly accurate in predicting the future behavior of the system or process, and can potentially be used to support several objectives, such as safety, quality, mission planning, operational maneuvers, process control and risk management. This seminar will present recent advances in using Bayesian computational methods that advance the digital twin technology to support all these objectives, based on several types of computation: current state diagnosis, model updating, future state prognosis, and decision-making. All these computations are affected by uncertainty regarding system properties, operational parameters, usage, and environment, as well as uncertainties in data and prediction models. Thus, uncertainty quantification becomes an important need in system diagnosis and prognosis, considering both aleatory and epistemic uncertainty sources. The Bayesian methodology is able to address this need in a comprehensive manner and aggregate the uncertainty from multiple sources. A wide range of use cases such as additive manufacturing, aviation system safety, and power grid operations will be presented.