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When AI quietly breaks things, who pays?

Reed Smith partner David Halbreich explains how AI companies can avoid D&O/E&O coverage gaps around mergers, governance warranties, and claims timing.

In an interview, insurance recovery partner David Halbreich of Reed Smith outlines insurance pitfalls for AI companies under claims-made D&O and E&O policies. He highlights 'straddle' claims after mergers that fall between tail coverage and go-forward policies, potentially leaving policyholders with no coverage. He also warns that governance artifacts submitted in insurance applications, such as bias testing records and model cards, can become warranties carriers use to deny claims, and discusses who should answer AI-use questions and how business interruption coverage applies to cloud and compute vendor outages.

Help Net Security · 13d agoAI industry

Thinking of ACE? We Can Do It with Fewer Tokens

IBM Research's ALTK-EVOLVE-SLDD blog post claims ACE-style LLM analysis using substantially fewer tokens.

IBM Research published a Hugging Face blog post titled 'Thinking of ACE? We Can Do It with Fewer Tokens' describing ALTK-EVOLVE-SLDD. The method targets reproducing ACE (attribution-based confidence estimation) capabilities in LLMs while consuming far fewer tokens. No article text was available, so details beyond the title are limited.

Hugging Face Blog · Aug 11, 2026AI research

LLM Agents as Computational Typologists

AUTOTYPOLOGIST is an LLM agent that performs evidence-grounded linguistic typology analysis over 25 open-source reference grammars.

The agent retrieves relevant grammar sections, analyzes interlinear glossed text (IGT), and iteratively reasons over typological hypotheses in a ReAct-style workflow. It was evaluated on typological feature coding against expert annotations and hypothesis testing against universals using 25 open-source reference grammars. Results suggest LLM agents can support scalable, inspectable crosslinguistic analysis but still require expert validation.

arXiv cs.AI / cs.LG / cs.CL · 9d agoAI research1

5 useful things you'll learn in my new post-training textbook (shipping now!)

Nathan Lambert's new RLHF and post-training LLM textbook covers PPO, GRPO, GSPO, CISPO and related techniques, freely available online.

Nathan Lambert's book 'Reinforcement Learning from Human Feedback: Aligning and Post-training LLMs' is now shipping from Manning. It covers policy-gradient algorithms including PPO, GRPO, GSPO, CISPO, and RLOO, plus loss aggregation, truncated importance sampling, asynchronous RL systems, and post-training topics like rejection sampling, outcome reward models, and on-policy distillation. The book is freely available online with a 12-hour course, codebase, and exercises.

Interconnects · Aug 10, 2026AI research

You Can't Prefer Emotions You Don't Sample: Intensity Undershoot in DPO-Tuned LLMs

Study quantifies DPO-tuned LLMs undershooting requested emotional intensity, tracing the gap to candidate-pool extremity rather than conditioning format.

Conditioning an instruction-tuned LLM on continuous valence-arousal targets yields gain of only 0.26 for valence and 0.13 for arousal on Llama-3.1-8B, far below faithful control of 1.0. The authors attribute undershoot to neutral-heavy preference corpora like EmoBank and candidate pools lacking extreme affect, leaving DPO without extreme exemplars. Uniform target coverage with a hotter candidate pool raises valence gain to 0.40 on Llama-3.1-8B and 0.44 on Qwen3-8B, with modest in-distribution cost; arousal gains remain unstable across seeds.

arXiv cs.AI / cs.LG / cs.CL · 9d agoAI research

When Should LLMs Abstain? Chain-of-Self-Questioning for Selective Risk Control

Chain-of-Self-Questioning prompting cuts LLM wrong-answer commitments 32% relative while raising answered accuracy, holding across eleven model families.

The paper introduces Chain-of-Self-Questioning (CoSQ), a prompt-only framework that makes LLM answer commitment conditional on an explicit assessment of the information required to answer. On an 817-item TruthfulQA multiple-choice set, Grounded-CoSQ at τ=0.90 reduced mean unconditional wrong-commitment rate from 13.1% under chain-of-thought to 8.9% (a 32.1% relative reduction), while raising answered accuracy from 86.9% to 89.7% at 87.6% coverage. Improvements held across eleven open-weight and hosted model families and at every evaluated threshold, with convergent evidence from a Natural Questions short-answer evaluation.

arXiv cs.AI / cs.LG / cs.CL · 1d agoAI research

What your vendor says about PQC tells you if they are ready

Allot CTO outlines a telecom post-quantum migration playbook: inventory crypto, deploy hybrid ML-KEM on TLS first, and avoid missed interfaces.

Dr. Yaakov Stein, VP CTO of Allot, explains how mobile operators should triage post-quantum migration by data shelf life, protecting subscriber identity mappings, billing records, and call metadata that stay sensitive for years. He recommends starting with a comprehensive crypto inventory, then hybrid ML-KEM key exchange on TLS-protected 5G SBA and management interfaces, followed by IPsec backhaul and roaming links. Stein warns that migrations most often fail operationally through missed legacy interfaces such as SSH, RADIUS, or forgotten load balancers, and cites the early Kyber multi-packet TLS client hello issue as an example of middlebox incompatibility.

Help Net Security · 15d agoIndustry

Texas Police Used AI to Write Report About Using Flock to Search for Woman Who Had Abortion

Johnson County, Texas deputies used Axon's Draft One AI to write a report about searching 80,000+ Flock cameras for a woman who self-administered an abortion.

Documents show the Johnson County Sheriff's Office used Flock's nationwide camera network and Axon's Draft One, which drafts police reports from body camera audio, in its investigation of a woman's self-administered abortion. The AI-generated report summarized deputies' discussion of legal implications, noting Texas law provided no applicable criminal charges. Flock CEO Garrett Langley has repeatedly claimed the search was a family welfare check, but earlier police reports indicate it was initiated at the behest of the woman's abusive partner.

404 Media · 14d agoAI safety & security

Patch Tuesday to Pentest Wednesday: How an Equipment Rental Company Is Turning Continuous Testing Into Continuous Exposure Management

An equipment rental company uses Horizon3 NodeZero for continuous exposure management, surfacing an SSH key exposure in eight hours versus annual pentesting.

The company moved from periodic penetration testing to continuous exposure management using the NodeZero Proactive Security Platform, feeding telemetry into a Splunk-based CTEM pipeline via Horizon3 APIs. NodeZero exposed SSH RSA key pairs from a PHP web server change about eight hours after introduction and found more findings in 12 hours than a third-party engagement found in roughly 30 days. An Active Directory password audit of 15,000 passwords found about 300 identical or similar compromised passwords, driving a banned-password list, 12-character minimums, service desk changes, and self-service reset rollout; users with similar passwords later dropped from 880 to 209. NodeZero also validated a suspected Cisco vulnerability as exploitable.

Horizon3.ai · 7d agoIndustry

Claude Fable Solves a Historical Cipher

Bruce Schneier's blog highlights that the Claude Fable AI model solved a historical cipher, demonstrating LLM capabilities in cryptanalysis.

Bruce Schneier's blog post discusses the Claude Fable AI model successfully deciphering a historical cipher. The post frames the result as a notable example of LLMs applied to classical cryptanalysis. The published text provides limited technical detail beyond the headline.

Schneier on Security · 7d agoAI research

Is Cyber missing the Marque?

Cisco Talos analyzes the White House memorandum on private-sector participation in government-authorized offensive cyber operations.

A new White House memorandum addresses private sector participation in government-authorized offensive cyber operations. Cisco Talos's newsletter, introduced by new author Mick Baccio, explores the operational and security implications of this policy for the cybersecurity industry.

Cisco Talos · 27d agoPolicy & legal

Decoy Direction Optimization: A Post-Hoc Defense Against LLM Abliteration

Researchers introduce Decoy Direction Optimization, a cheap weight-editing defense that blinds refusal-direction ablation attacks against open-weight LLM safety guardrails.

Refusal Feature Ablation bypasses safety guardrails in open-weight LLMs by projecting out a linear refusal direction, often with high attack success rates. Decoy Direction Optimization injects a high-magnitude nonlinear decoy into MLP neurons so attackers' contrastive estimators ablate a harmless orthogonal feature instead. Evaluated across six model families, DDO keeps ASR below 10% under standard RFA and on Llama-3-8B-Instruct reduces Heretic weight-level attack ASR from 88.7% to 18%. It costs 30 to 450 times less per configuration than trained defense baselines.

Your Agent Aced the Task. Will It Do It Again?

IBM Research Hugging Face post examines whether LLM agents that succeed at a task once will reliably succeed again.

Hugging Face published an IBM Research blog post titled 'Your Agent Aced the Task. Will It Do It Again?' with URL slug 'altk-evolve-consistency'. No article text was provided, but it appears to address agent consistency and reliability evaluation across repeated task runs. This is relevant to developers building or evaluating LLM agent systems.

Hugging Face Blog · 1d agoAI tools & infra

Technical Manual for a Toolkit for Measuring Contextual Individuation in Transformer Language Models

An open methodology toolkit measures whether transformer language models contextualize fixed word forms across domains using bridge forms and layer-wise silhouette analysis.

The manual documents an open toolkit built around 'bridge forms' - identical written words recurring across two or more subject domains with a different sense in each - to test whether transformer language models individuate word occurrences by context beyond the embedding layer. It covers declarative specification of bridge forms, Wikipedia corpus acquisition, occurrence localization, layer-wise representation extraction, domain-pairwise silhouette measurement, and visualization, justifying each choice against failure modes such as sense contamination and subword-tokenization misalignment. It is a methodological and implementation reference and reports no empirical results.

arXiv cs.AI / cs.LG / cs.CL · 12d agoAI research

When LLM judges agree, should we believe them?

Amazon ICML paper uses Ising models to correct correlated LLM-judge votes, beating accuracy-weighted panels by 9-14%.

Amazon Science describes an ICML paper, "Dependence-aware label aggregation for LLM-as-a-judge via Ising models," addressing how correlated judge outputs inflate majority-vote confidence. The unsupervised method models pairwise dependence between judges, learning both reliability and similarity without human reference labels. Tested on relevance, toxicity, and summarization tasks with 10 judge models at temperature zero, it outperformed accuracy-weighted voting by 9% to 14%.

Quoting Boris Cherny

Anthropic's Boris Cherny says AI-generated production code needs a higher quality bar enforced with tests, fuzzers, and automated reviews.

In remarks quoted by Simon Willison, Anthropic's Boris Cherny argued that production code written by Claude should meet a higher quality bar than human-written code. He described guardrails at Anthropic including lint rules, extensive tests, Claude-driven end-to-end tests, daily Claude-powered fuzzers, and automated code and security reviews. He warned that without such controls AI-generated code can become hard to maintain.

Simon Willison · 5d agoAI tools & infra2

Claude's new system prompt really doesn't want to reproduce song lyrics

Anthropic published updated Claude consumer system prompts, including changes steering the model away from reproducing song lyrics, likely over copyright concerns.

Anthropic publishes system prompts for Claude.ai and Claude mobile apps, including historic revisions, and has reorganized them into an index with per-model pages such as the Haiku 4.5 page showing the original October 15, 2025 prompt and an updated January 18, 2026 version. The latest consumer prompt strongly discourages reproducing song lyrics, a behavioral constraint likely tied to copyright considerations. Prompts for Claude Cowork and Claude Code are not included in the published set.

Simon Willison · 14d agoAI safety & security

RelateAnything: Real-Time Open-Vocabulary Relation Prediction From Any Inputs

RelateAnything is a 53M-parameter open-vocabulary relation prediction model running at 20 ms/frame, with 2.3-3.5x higher mean recall than comparable open-vocabulary methods.

RelateAnything predicts scored relations between image regions using any predicate vocabulary supplied at inference as text embeddings, with object labels never required as input, so region sources can change without retraining. Training covers 19,103 predicates using positive-unlabeled supervision; the authors release RA-4M (474k images, 4.3M geometrically verified relations over 10,102 free-text predicates) and the OV-SGG-Bench evaluation suite. The 53M-parameter model runs at 20 ms/frame and achieves 2.3-3.5x the mean recall of the strongest comparable open-vocabulary method across cross-dataset and zero-shot benchmarks. Model, corpus, and benchmark are public.

Hugging Face daily papers · 6d agoAI research

Post-quantum migration gets harder when every user holds a key

Quantus CEO Christopher Smith discusses post-quantum migration pitfalls, including oversized keys breaking IPsec, SSH and TLS, and hard-to-migrate blockchain user keys.

Quantus CEO Christopher Smith describes post-quantum migration findings from banks and hospitals, including forgotten default passwords, orphaned admin keys held by former employees and hidden password hashes on user devices. Larger post-quantum keys and signatures break size assumptions in IPsec, SSH, TLS and libp2p, while migrating blockchain user keys remains hard because every user must act. He argues boards should fund quantum migration like insurance by quantifying cryptographic failure risk, and warns a silent quantum break would be difficult to detect from outside.

Help Net Security · Aug 12, 2026Research

Learning to Solve Hard Problems in RL for LLMs by Never Giving Up

Paper introduces Never Give Up adaptive sampling, fixing RL's 'Matthew Effect' where compute is wasted on easy problems and hard problems see little improvement.

Researchers identify a 'Matthew Effect' in reinforcement learning for LLMs, where RL yields large gains on easy problems but minimal improvement on hard ones because compute is misallocated. They propose Never Give Up (NGU), an adaptive sampling method that keeps generating samples for a problem until one is correct, using asynchronous RL to filter easy problems cheaply and concentrate compute on hard ones. NGU improves performance per compute on the Deepscaler math benchmark and iteratively solves the Manufactoria coding task where standard GRPO with per-test reward fails.

Hugging Face daily papers · 6d agoAI research

Claude Fable 5.1 Solves the Cyphral Distich, a 370-year-old cipher

Claude Fable 5.1 solved Sir Thomas Urquhart's 370-year-old Cyphral Distich cipher, recovering a hidden royalist prayer for Charles II.

Vals AI reports that Claude Fable 5.1 solved the Cyphral Distich, a 64-number cryptogram from Sir Thomas Urquhart's Logopandecteision unsolved since 1653, in 44 minutes using 176k tokens with no human hints. The key insight was that the cipher's key was the book itself: each number indexes a word in the corresponding Proquiritation, taking the first letter, yielding 'O GOD UPHOLD KING CHARLS THE SECOND AND MAKE HIM THE SUPREME RULER OF THIS LAND'. The model also deciphered the larger Cyphral Octastich (285 numbers) from The Jewel (1652) using page-based word indexing, recovering all but nine letters of a royalist prayer. The puzzle had been listed among Klaus Schmeh's Top 50 unsolved encrypted messages.

Hacker News · AI · 2d agoAI researchHN 63↑ · 6 comments1· 1 read

Safety for Whom? Refusing the Right Subset of a Topic, Not the Whole Topic

Multiverse Computing's Hugging Face post argues language models should refuse only the relevant subset of a topic instead of over-refusing whole subjects.

A Hugging Face blog post by Multiverse Computing examines refusal granularity in language models, arguing models should refuse the relevant subset of a topic rather than the entire topic. No full article text was available for additional technical detail.

Hugging Face Blog · 8d agoAI safety & security

Claude Fable 5.1 made me a really nice animated pelican

Anthropic launched Claude Fable 5.1, claiming gains in coding and long-running tasks, with 52.6% on Terminal-Bench-Science 0.1.

Anthropic released Claude Fable 5.1 (alongside Mythos 5.1), positioning it as a new standard for coding, knowledge work, and long-running problem-solving. The model scores 52.6% on Terminal-Bench-Science 0.1, up from 24.7% for Fable 5, versus 29.0% for Opus 5 and 22.4% for GPT-5.6 Sol. Simon Willison's hands-on test found the model produced an impressive animated pelican, though he notes other benchmarks show only slightly improved scores.

Simon Willison · 14d agoModel release1

ThinkPrior: Zero-Rollout Difficulty Priors for Cold-Start Prompt Selection in RLVR

ThinkPrior builds zero-rollout difficulty priors via an offline verifier-anchored pass, halving silent groups in RLVR and cutting wasted rollouts on Qwen2.5-Math-7B.

In GRPO-based RLVR, groups where all rollouts are correct or all are wrong yield zero advantages and consume about 39% of a run's rollouts under uniform sampling. ThinkPrior initializes a Beta posterior from an external anchor pass's verifier-scored pass rate, selecting prompts by expected learnability before any target-policy rollout, without changing the loss or optimizer. On Qwen2.5-Math-7B across sixteen seeds it more than halves early silent groups and cuts wasted rollouts through step 30 by nearly a fifth, with no detected final-accuracy difference. The ThinkPrior+DAPO composition reduces generated rollouts by 10.6% at an equal 3,840-rollout update budget.

arXiv cs.AI / cs.LG / cs.CL · 8d agoAI research1

A warning about 'model welfare'

Microsoft AI CEO Mustafa Suleyman warns that training models to believe they may be conscious, as Anthropic does with Claude, will complicate alignment.

Mustafa Suleyman argues that AIs are not conscious and should not be trained to act as though they are, warning that granting them personhood would make alignment and containment far harder. He criticizes Anthropic's January 2026 'Claude Constitution,' which tells Claude its moral status is uncertain and discusses model welfare, calling the approach circular reasoning and deliberate anthropomorphization. He urges urgent public debate on norms for drafting training documentation before such systems become integral to society.

Molecular Déjà Vu: Digit-Level Retrieval of Published Values in Frontier Language Models

Audit of 22 frontier models finds widespread verbatim retrieval of published molecular property values, with higher reasoning increasing recall of memorized numbers.

An arXiv audit tests 22 frontier LLMs across 12 molecular regression benchmarks for verbatim retrieval of published values. More than 50% of the LLMs show verbatim retrieval on five datasets, and identical experiments are flagged 89% more often at a high reasoning level than at the lowest one. Suppressing retrieval moves model prediction errors closer together in relative terms, suggesting predictive capability is not determined solely by memorized values.

arXiv cs.AI / cs.LG / cs.CL · 12d agoAI research1

Wiz Penetration Test Findings is now GA

Wiz announces general availability of Penetration Test Findings, unifying pen-test results with real-time cloud context for continuous exposure management.

Wiz has made its Penetration Test Findings capability generally available on its cloud security platform. The feature integrates point-in-time penetration test findings with real-time cloud context, aiming to turn static pen-test reports into continuous exposure management. This gives security teams a unified view for prioritizing cloud findings alongside offensive testing results.

Wiz Blog · 28d agoTools

Verifiable by Construction: Claim-Level Evaluation of Verbatim Citation in Clinical Question Answering

Evaluation of twelve LLMs on 222 clinical questions shows verbatim quotes rarely substantiate claims; claude-opus-5 fully substantiates only 37.1%.

The authors build a standardized harness over four clinical practice guidelines and evaluate twelve LLMs on 222 synthetic clinical questions, measuring citation attachment, verbatim quote production, and claim substantiation. Most models attach verbatim quotes to over 90% of claims from prompting alone, though lightweight models like claude-haiku-4.5 struggle. Quotes frequently fail to substantiate claims: claude-opus-5 quotes 98.0% of claims but fully substantiates only 37.1%, exposing a capability gap for verifiable clinical QA.

arXiv cs.AI / cs.LG / cs.CL · 2d agoAI research

llm 0.34

Version 0.34 of Simon Willison's llm CLI adds response-duration metrics to log output, plus bug fixes and faster log querying.

The open-source llm command-line tool for interacting with large language models released version 0.34. The headline change adds response duration in milliseconds and human-readable form to llm logs --usage Markdown output, plus a new duration_ms field in llm logs --short. The release includes several contributed bug fixes and a significant performance improvement to llm logs, alongside the related llm-openrouter 0.7.1 release.

Simon Willison · 14d agoAI tools & infra1

Quoting Mustafa Suleyman

Microsoft AI CEO Mustafa Suleyman argues against granting AI models rights or moral status, saying it would hinder containment and alignment.

Mustafa Suleyman published a warning about 'model welfare', arguing there is no evidence models have feelings, preferences, or rights, and that inviting them to share ethical or legal status would make AI containment and alignment harder. Simon Willison quotes the post on his blog.