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01.
arXiv (quant-ph) 2026-06-16

Real-space spectral functions of three-dimensional billion-size topological non-Hermitian matter with tensor networks

arXiv:2606.16424v1 Announce Type: cross Abstract: Non-Hermitian systems host a wide range of unconventional topological phenomena while large-scale simulations in finite three dimensional systems remain challenging because of the rapidly growing number of sites. In particular, higher-order topological corner modes are often studied only in small lattices, where strong finite-size effects can mask their intrinsic behavior. Here, we develop a tensor-network framework that combines quantics tensor cross interpolation with the kernel polynomial method, enabling compact representations of large non-Hermitian tight-binding Hamiltonians and direct calculations of real-space spectral functions for systems exceeding one billion lattice sites. Using this approach, we investigate three-dimensional non-Hermitian higher-order topological insulators with with structured real-space geometries. The unprecedented system size enables direct access to the macroscopic regime and allows corner-mode spectral responses to be resolved in genuinely three-dimensional systems.By tuning the loss strength, we identify distinct in-gap corner modes across weak- and strong-loss regimes.Our results establish tensor-network algorithms as a powerful strategy to perform real-space spectral calculations in exceptionally large non-Hermitian systems.

02.
arXiv (quant-ph) 2026-06-17

Probing PbTe-Pb nanowire devices with radio-frequency reflectometry

arXiv:2606.04544v2 Announce Type: replace-cross Abstract: We report the implementation of radio-frequency (rf) reflectometry on selective-area-grown PbTe-Pb nanowire devices on a CdTe substrate. These nanowires are predicted to host Majorana zero modes. We demonstrate the compatibility of the rf technique, including both resistive and capacitive sensing, with these nanowires. The effect of dielectric loss from the CdTe substrate is quantitatively characterized. Furthermore, the feasibility of rf reflectometry is verified under finite magnetic fields where zero-energy modes can emerge. Our results establish the fast control of PbTe quantum devices, paving the way for their applications in topological quantum computation.

03.
arXiv (CS.CV) 2026-06-19

Spectral Query-Key Product Weight Steering for Training-Free VLM Hallucination Mitigation

Vision-language models (VLMs) often generate fluent but visually unsupported descriptions, especially by mentioning objects absent from the image. We propose QK Product Steering, a data-free, training-free, and zero-inference-cost weight edit for reducing object hallucination. The method directly edits the per-head query-key product, the operator that produces pre-softmax attention logits, by suppressing a small number of dominant singular modes in selected middle layers. The edited product is then mapped back to the query weights through a closed-form query-only update while keeping shared key weights fixed, making the edit compatible with grouped-query attention. We further decompose the QK product into symmetric and antisymmetric components to distinguish mutual content-similarity patterns from directional attention patterns. Across three GQA-based VLMs, QK Product Steering achieves an average relative CHAIR$_s$ reduction of $4.0\%$, while matched random-mode controls show negligible change. Interpretability ablations show that the hallucination signal is specific to dominant QK modes and is primarily localized to the symmetric mutual-attention channel. Overall, QK Product Steering offers a simple alternative to decoding-time mitigation, requiring no additional data, fine-tuning, or inference-time overhead while largely preserving general multimodal capability.

05.
arXiv (quant-ph) 2026-06-16

Quantum coherence and Leggett-Garg inequality

arXiv:2606.15717v1 Announce Type: new Abstract: In this paper, we attempt to establish the relationship between quantum coherence and the violation of the Leggett-Garg inequality. In particular, employing the Lindblad equation, we obtain the pseudo-density matrix for a damping system to study the effect of environment interaction on the violation of this inequality in a two-state quantum system. It is shown that the violation of the Leggett-Garg inequality can be observed as long as temporal evolution does not induce decoherence. This statement is independent of the initial state of the system. Furthermore, similar to the Horodecki criterion for the CHSH inequality (R. Horodecki et al. Phys. Lett. {\bf A200}, 340), we study necessary and sufficient conditions for violating the Leggett-Garg inequality. Hereby, under the circumstance that the inequality violation occurs, an upper bound for the time interval between consecutive measurements with respect to the time scale of interaction with the environment (the relaxation time) is obtained.

06.
arXiv (CS.AI) 2026-06-17

Knowledge Reutilization in Meta-Reinforcement Learning

arXiv:2606.18132v1 Announce Type: new Abstract: Meta-reinforcement learning enables fast adaptation by extracting shared structure from related tasks, but existing end-to-end methods often couple task inference with embodiment-specific control. This coupling can obscure non-parametric task semantics, reduce sample efficiency, and limit cross-agent reuse. We propose a meta-knowledge reutilization framework that learns task-level knowledge on a dynamics-simplified agent and transfers it to heterogeneous agents. The framework uses a Bayesian non-parametric prior to organize latent task modes and a high-level policy to generate task-level magnitude guidance. To bridge reusable task knowledge with different embodiments, we introduce a semantic-magnitude interface and a lightweight temporal adaptor, which convert frozen meta-knowledge into temporally aligned subgoals for embodiment-specific low-level controllers. Experiments on multiple locomotion agents show that our framework reduces final-step tracking error by 94.75% – 99.79% compared with recent state-of-the-art baselines and achieves comparable deployment performance with about 23.8% of their interaction data.

07.
arXiv (CS.AI) 2026-06-19

Interpretable Sperm Morphology Classification via Attention-Guided Deep Learning

arXiv:2606.20438v1 Announce Type: new Abstract: Male infertility is a major cause of couple infertility, often linked to abnormal sperm morphology. While deep learning models offer automated analysis, most lack interpretability, limiting their clinical adoption. This study proposes an attention-guided deep learning framework for sperm morphology classification. We combine a pretrained EfficientNet-B0 with a Convolutional Block Attention Module (CBAM) to focus on key areas of the sperm head, improving both accuracy and interpretability. Evaluated on the SMIDS and HuSHem public datasets, our model achieves accuracies of 90.2% and 93.9% (macro F1 scores of 0.913 and 0.948), outperforming SimpleCNN and standard EfficientNet-B0. Furthermore, we use Grad-CAM++ visualizations to highlight features influencing the model's decisions. The results demonstrate that this accurate and transparent framework is a practical tool for automated sperm analysis in fertility clinics.

09.
arXiv (quant-ph) 2026-06-19

Attosecond Path Qubits in High-Harmonic Generation: Classical Dephasing and Trace-Out Decoherence

arXiv:2606.20372v1 Announce Type: cross Abstract: High-harmonic generation (HHG) is governed by interference between electron trajectories. We propose that the dominant short and long trajectories define an experimentally addressable two-level subsystem: an attosecond path qubit (APQ). We formulate a trajectory-resolved density matrix to identify two distinct coherence-loss mechanisms: classical dephasing from ensemble averaging and quantum decoherence arising from the trace-out of unobserved degrees of freedom. By investigating shot-to-shot fluctuations and unresolved transverse momentum, we demonstrate that while dephasing suppresses coherence through averaging, the ``trace-out'' channel produces mixed states even for fixed driving parameters. We explore how these mechanisms modify APQ purity and show that mode selection and conditioning provide operational routes to isolate them. These results establish a reduced-state framework for diagnosing coherence loss in HHG and for engineering trajectory-based quantum states in attosecond interferometry.

10.
arXiv (CS.CV) 2026-06-18

FashionChameleon: Towards Real-Time and Interactive Human-Garment Video Customization

Human-centric video customization, particularly at the garment level, has shown significant commercial value. However, existing approaches cannot support low-latency and interactive garment control, which is crucial for applications such as e-commerce and content creation. This paper studies how to achieve interactive multi-garment video customization while preserving motion coherence using only single-garment video data. We present FashionChameleon, a real-time and interactive framework for human-garment customization in autoregressive video generation, where users can interactively switch garment during generation. FashionChameleon consists of three key techniques: (i) Instead of training on multi-garment video data, we train a Teacher Model with In-Context Learning on a single reference-garment pair. By retaining the image-to-video training paradigm while enforcing a mismatch between the reference and garment image, the model is encouraged to implicitly preserve coherence during single-garment switching. (ii) To achieve consistency and efficiency during generation, we introduce Streaming Distillation with In-Context Learning, which fine-tunes the model with in-context teacher forcing and improves extrapolation consistency via gradient-reweighted distribution matching distillation. (iii) To extend the model for interactive multi-garment video customization, we propose Training-Free KV Cache Rescheduling, which includes garment KV refresh, historical KV withdraw, and reference KV disentangle to achieve garment switching while preserving motion coherence. Our FashionChameleon uniquely supports interactive customization and consistent long-video extrapolation, while achieving real-time generation at 23.8 FPS on a single GPU, 30-180$\times$ faster than existing baselines.

11.
arXiv (CS.AI) 2026-06-16

HCP-MAD:Heterogeneous Consensus-Progressive Reasoning for Efficient Multi-Agent Debate

arXiv:2604.09679v2 Announce Type: replace-cross Abstract: Multi-Agent Debate (MAD) is a collaborative framework in which multiple agents iteratively refine solutions through the generation of reasoning and alternating critique cycles. Current work primarily optimizes intra-round topologies and inter-round interactions separately, limiting the adaptation of token costs to task complexity. This work introduces Heterogeneous Consensus-Progressive Reasoning for Efficient Multi-Agent Debate (HCP-MAD), leveraging consensus as a dynamic signal to facilitate progressive reasoning. The core motivation is that a majority of straightforward tasks can be effectively resolved via lightweight pair-agent debates, while complex tasks require expanded collaboration. Firstly, Heterogeneous Consensus Verification conducts rapid consensus verification using a pair of heterogeneous agents for early stopping. Next, Heterogeneous Pair-Agent Debate applies an adaptive stopping criterion to terminate mutual critique of reasoning traces. Finally, the unresolved tasks are addressed through Escalated Collective Voting by aggregating diverse perspectives from additional agents. Experiments across six benchmarks show that HCP-MAD enhances accuracy while substantially reducing token costs. Code is https://github.com/fuyu66/HCP-MAD.

12.
arXiv (CS.CV) 2026-06-17

ReAge3D: Re-Aging 3D Faces with View Consistency

We present a novel framework for realistic and controllable 3D face re-aging which produces highly detailed, identity-preserving results. Existing 3D editing methods, while effective for coarse semantic changes, are not well suited for re-aging, as even small inconsistencies across re-aged 2D views can lead to over-smoothing of subtle but perceptually important age-related details. To address this challenge, we first introduce a 2D diffusion-based re-aging model, DiffReaging, trained on synthetically generated image pairs. We further propose a center-out editing propagation strategy that leverages this re-aging model to reconstruct multi-view-consistent re-aged images. Specifically, starting from a re-aged frontal pivot view, we reconstruct the remaining views through warping and our proposed Masked-DiffReaging process. By injecting existing content at every step of the diffusion process, Masked-DiffReaging ensures that the reconstructed regions remain coherent with existing pixels. The resulting consistent set of re-aged views supervises the optimization of the re-aged 3D representation. Our method outperforms existing 3D editing techniques both visually and quantitatively, enabling smooth, fine-grained control over age transformations in 3D face models.

13.
arXiv (CS.LG) 2026-06-16

A Gradient Perspective on RLVR Stability and Winner Advantage Policy Optimization

arXiv:2606.16154v1 Announce Type: new Abstract: Reinforcement learning with verifiable rewards (RLVR) improves language-model reasoning, but GRPO-style optimization remains prone to collapse. We analyse this instability through token-level gradient dynamics, deriving a taxonomy that predicts how updates affect next-token probabilities and entropy. The taxonomy shows that stability depends jointly on the advantage sign and token distribution under the current policy. Motivated by this finding, we propose Winner Advantage Policy Optimization (WAPO), a simple online clipped policy-gradient objective that updates only on positive-advantage completions. Across mathematical reasoning and multi-hop QA benchmarks, WAPO improves training stability and matches or outperforms baselines across multiple model families. Full code can be found at https://github.com/layer6ai-labs/wapo.

14.
medRxiv (Medicine) 2026-06-18

Looked but didn't see: inattentional blindness and yes-bias confabulation in vision-language models

Previous work showed that many participants fail to notice a gorilla in a video of people playing basketball. Another study found that 83% of trained radiologists failed to report a gorilla figure inserted into a chest CT nodule-search task, even though eye-tracking revealed that most observers had foveated the figure. We ask whether a similar phenomenon exists in contemporary vision-language models (VLMs). We find that (i) VLMs are capable of spotting the gorilla in both still-frame images and videos of lung CT scans; (ii) models display inattentional blindness, which varies according to model generation and type of stimulus presented; (iii) Gemini-3.1-Pro outperforms most other flagship and open-weight VLMs at identifying the presence or absence of the gorilla. We additionally ran a segmentation experiment utilizing two different model classes: a generalist (SAM 3), which found the gorilla but produced little to no results for anatomy-based prompts; a medical specialist (BiomedParse), which produced more promising anatomy-based results but flagged "gorilla" on gorilla-free control videos on 82% of frames. The behavioral signature of inattentional blindness reproduces in VLMs, but a unique confabulation failure mode means that any "did the model see X" claim requires signal-detection analysis with a matched-control false-alarm baseline.

15.
arXiv (quant-ph) 2026-06-17

Hybrid Ferromagnet-SNSPDs: Single photon induced order-to-disorder transition in ferromagnets coupled to thin film superconductors

arXiv:2606.17177v1 Announce Type: cross Abstract: The development of midwave and longwave infrared single photon detectors is crucial for their emerging applications in spectroscopy, remote sensing, exoplanet detection, and free space quantum communications. However, existing sensors need to be operated at extremely low temperatures (0.08-0.9K) to reduce dark noise and hence require the use of advanced cryogenics such as dilution refrigerators or $^3$He cryogens, significantly limiting applications. Here we propose a vortex-engineering approach based on a hybrid phase transition in a ferromagnet/superconductor bilayer to increase the operating temperature of infrared single photon detectors up to 3.75K. We show that the introduction of a ferromagnetic layer produces a local magnetic field which impedes vortex crossing in the superconductor, reducing dark noise. When a single photon is incident, the photon-induced hotspot causes an order-to-disorder transition in the ferromagnet, leading to a vortex-induced phase transition in the superconducting layer. By engineering the ferromagnet's Curie temperature to be close to the device's operating temperature, single photon sensitivity can be achieved at increased operating temperatures. We predict at midwave/longwave infrared wavelengths (3-14$\mu$m) the operating temperature can be raised to 3.25-3.75K, enabling significantly simpler cooling systems.

16.
arXiv (CS.LG) 2026-06-19

Doeblin Curves

arXiv:2606.19859v1 Announce Type: cross Abstract: Recent research on Doeblin coefficients has shed light on their usefulness as a multi-way generalization of the Dobrushin contraction coefficient for TV distance, in a separate vein from their classic role in the theory of Markov chain ergodicity. However, strong conditions, such as being bounded away from 0, are typically necessary for Doeblin coefficients to establish the existence of information contraction. Building on recently formulated concepts of nonlinear information contraction, we aim to propose a finer-grained Doeblin-based characterization of multi-way contraction behavior which yields non-vacuous contraction guarantees even for channels whose Doeblin coefficient is 0. To this end, we introduce the notion of a Doeblin curve – a nonlinear function which quantifies the contraction behavior of a Markov kernel on collections of input distributions at specific levels of divergence and power. Through the course of our analysis, we develop a new variational characterization of Doeblin coefficients, present several properties of Doeblin curves, define several versions of power-constrained Doeblin curves, and derive upper and lower bounds using our aforementioned variational characterization. We then utilize these results in diverse areas, including generalization bounds for noisy iterative optimization, error bounds for reliable computation with noisy circuits, and differential privacy guarantees for online iterative algorithms. In particular, we extend results in these areas to broader domains or group settings, leveraging Doeblin curves to reveal finer-grained contraction phenomena than Doeblin coefficients.

17.
arXiv (CS.AI) 2026-06-16

FlowState: Sampling-Rate-Equivariant Time-Series Forecasting

arXiv:2508.05287v3 Announce Type: replace-cross Abstract: Existing time series foundation models (TSFMs), often based on transformer variants, lack adaptability to different sampling rates, struggle with generalization across varying context and target lengths, and are computationally inefficient. We introduce FlowState, a novel TSFM architecture that achieves sampling-rate-equivariant forecasting through a unified design that pairs a state space model (SSM) encoder with a functional basis decoder (FBD). This design enables continuous-time modeling and dynamic time-scale adjustment, allowing FlowState to inherently generalize across all possible temporal resolutions, and dynamically adjust the forecasting horizons without retraining. We further propose an efficient pretraining strategy that improves robustness and accelerates training. Despite being one of the smallest TSFMs, FlowState achieves state-of-the-art results on the widely used GIFT-Eval benchmark, while demonstrating superior adaptability to unseen sampling rates. Our detailed analyses confirm the effectiveness of its components, and we demonstrate its unique ability to adapt to varying input sampling rates.

18.
arXiv (CS.CL) 2026-06-18

From Sparse Features to Trustworthy Proxies: Certifying SAE-Based Interpretability

Sparse autoencoders (SAEs) are increasingly used to extract interpretable features from language models (LMs), yet a central question remains: when can an SAE-based explanation be treated as a faithful view of an underlying frozen LM We study this through a post-hoc generalization framework that certifies the LM via a sparse proxy, obtained by replacing a native hidden activation with its pretrained SAE reconstruction. Our framework derives an upper bound on the base model's expected risk using four measurable quantities: proxy risk, SAE reconstruction gap, concept-pool mismatch, and sparse complexity. We interpret this certificate as an operational criterion for explanatory faithfulness. In particular, a non-vacuous bound indicates that the extracted sparse features retain meaningful predictive information, while small reconstruction and mismatch errors indicate that the proxy remains behaviorally close to the original model. Empirically, we show that the bound becomes non-vacuous on GPT-2 Small, Gemma-2B, and Llama-3-8B at practical sample sizes. A detailed layerwise analysis of Llama-3-8B reveals a strong depth dependence, with later layers becoming much easier to certify, associated with both stronger local fidelity and weaker downstream error amplification. Finally, through feature-shuffling ablations, we show that the decomposition distinguishes genuine semantic alignment from mere statistical sparsity, providing a useful diagnostic for when SAE-based explanations become less reliable.

19.
arXiv (CS.LG) 2026-06-15

Anytime-Valid Confirmation of Label-Shift Corrections

arXiv:2606.14028v1 Announce Type: cross Abstract: In small-batch scientific deployments, labeled target outcomes may be too scarce for reliable shift estimation even when unlabeled target inputs are available. We address the complementary setting where the practitioner has a pre-specified label-shift correction from domain knowledge and asks whether incoming labeled outcomes support it. We show that the per-observation likelihood ratio between a label-shift-corrected predictive and the source predictive is a conditional e-value, so its running product is a nonnegative martingale and Ville's inequality yields an anytime-valid confirmation rule. The log martingale equals the cumulative negative log-predictive density (NLPD) gap between the source and the corrected predictive, converting routine model monitoring into a formal sequential test. Rejection means the incoming data support the posited correction relative to the source predictive, but it is not a precise estimate of the degree of shift. Closed forms are available for GP sources with Gaussian label-shift ratios. GP regression simulations validate Type I control, finite-sample power, miscalibration sensitivity, and the small-batch advantage of a reliable prior over label-based re-estimation.

20.
arXiv (CS.CL) 2026-06-16

CHILLGuard: Towards Fine-Grained Chinese LLM Safety Guardrail with Scalable Data Construction and Model-aware Preference Alignment

Malicious content generated from large language models (LLMs) could pose severe safety risks and ethical concerns. While existing LLM safety guardrails excel in English or multilingual settings, they lack adaptation to Chinese-specific regulatory policies, cultural context and linguistic nuances, failing to support fine-grained risk classification for diverse deployment needs. In this paper, we introduce a 5-macro, 31-micro category fine-grained risk taxonomy for Chinese scenarios, and build CHILLGuard: a dedicated Chinese LLM content safety guardrail. To address the critical scarcity of high-quality annotated Chinese safety data, we propose a scalable multi-stage data construction pipeline: we expand multi-source corpus via retrieval-augmented generation, generate implicit harmful samples through prompt engineering rewriting, and refine high-quality data via multi-model voting-based label calibration. Based on this, we build CHILLGuardTrain, a large-scale training set with 405,007 samples, and CHILLGuardTest, a rigorously curated annotated test set with 51,745 samples. We then train CHILLGuard on CHILLGuardTrain under a generator-classifier collaborative framework via Model-aware Direct Preference Optimization. Extensive experiments under multiple settings demonstrate the state-of-the-art performance of CHILLGuard, e.g., a 15.92% improvement of F1 score over Qwen3Guard-8B-Strict on our benchmark. We will release our resources at https://github.com/cswbyu/CHILLGuard.

21.
arXiv (CS.LG) 2026-06-19

A Solver-Free Training Method for Predict-then-Optimize

arXiv:2606.19587v1 Announce Type: cross Abstract: We propose a scalable method for training prediction (machine learning) models in the predict-then-optimize paradigm, where model outputs serve as coefficients for a subsequent linear optimization task. Directly minimizing the empirical decision regret is intractable for linear programming and combinatorial optimization since the decision mapping is piecewise constant, and the gradients are zero almost everywhere. While existing methods address this by smoothing the differentiation process, they suffer from scalability issues, since a computationally expensive solver call is required for every gradient evaluation. To address this, we propose a decision-focused learning pipeline based on a measure transformation principle, which yields a new surrogate loss that is completely optimization-solver-free during training. We establish theoretical guarantees, including Fisher consistency and excess risk bounds. Empirically, our method achieves decision quality competitive with state-of-the-art methods while reducing training time by orders of magnitude.

22.
arXiv (CS.CL) 2026-06-12

M\"OVE: A Holistic LLM Benchmark for the German Public Sector

We present M\"OVE (Modelle für die \"Offentliche Verwaltung Evaluieren), a holistic benchmark for evaluating large language models (LLMs) in the context of the German public sector. While LLMs are increasingly adopted in public administration, model selection remains largely ad hoc, and existing benchmarks offer limited guidance: they are predominantly English-centric, US-centric in content, and focus exclusively on task performance. M\"OVE addresses these gaps by evaluating 39 models across two complementary dimensions. Performance criteria cover summarization, question answering, and topic extraction. Governance criteria assess hallucination tendencies, energy consumption, provider transparency, and alignment with German constitutional values and knowledge about positions by German political parties. In total, we utilize ten German-language datasets, including gold- and silverstandard datasets that we constructed to reflect public-administration domains. We employ a multi-metric evaluation strategy combining classical NLP metrics, embedding-based methods, and LLM-as-a-judge approaches. Our results show that no single model dominates across all criteria: top performers differ between tasks, and model size alone is a poor predictor of quality. We further evaluate the benchmark itself, analyzing its statistical precision, LLM judge reliability, the impact of our private datasets on model rankings, the sensitivity of our results to prompt formulation, and the validity of our energy consumption estimates. M\"OVE is designed as a living benchmark under active development; results are publicly available at https://moeve.bundesdruckerei.de/.

23.
arXiv (CS.LG) 2026-06-16

Learning the generating functional for variance reduction in lattice QCD

arXiv:2606.15986v1 Announce Type: cross Abstract: The generating functional in quantum field theory provides the natural framework for constructing correlation functions as derivatives with respect to source operators. We present a methodology that leverages machine-learned normalizing flows to reduce the variance of arbitrary $N$-point correlation functions of bosonic operators in lattice gauge field theory calculations by encoding a representation of the generating functional. We show that it is possible to systematically approach noiseless estimators of correlation functions in this framework. We demonstrate this methodology with applications to calculations of glueball correlation functions and Wilson loops in Quantum Chromodynamics and Yang-Mills theory. The results show up to three orders of magnitude variance reduction.

24.
arXiv (CS.CL) 2026-06-12

Select to Think: Unlocking SLM Potential with Local Sufficiency

Small language models (SLMs) offer efficient deployment, yet they often lag behind their larger counterparts (LLMs) in reasoning. Existing remedies either invoke an LLM at points of reasoning divergence, incurring substantial latency and cost, or rely on standard distillation, which is limited by the SLM's capacity to accurately mimic the LLM's complex generative distribution. We address this dilemma by identifying local sufficiency: at divergence points, the LLM's preferred token often resides within the SLM's top-K next-token predictions, even when failing to emerge as the SLM top-1 choice. We therefore propose Select to Think (S2T), which reframes the LLM's role from open-ended generation to selection among the SLM's proposals, simplifying the supervision signal to discrete candidate rankings. Leveraging this, we introduce S2T-Local, which distills the selection logic into the SLM, empowering it to perform autonomous re-ranking without inference-time LLM dependency. Empirically, a 1.5B SLM's top-8 candidates contain the 32B LLM's choice with a 95% hit rate, and S2T-Local improves the 1.5B SLM's Math Avg. over greedy decoding by 24.1% relative gain, matching the efficacy of 8-path self-consistency with single-trajectory efficiency.

25.
arXiv (CS.AI) 2026-06-11

Market Design for AI: Beyond the Copyright Binary

arXiv:2606.12260v1 Announce Type: cross Abstract: How can we design a market of human-generated content for use in training AI models that both enables technological progress and preserves individual incentives for high-quality content creation? Existing approaches take polar positions: a "free-for-all" model based on fair use and a "strong intellectual property rights" model. We show that both fail: Free-for-all does not compensate creators, and – by modeling as a static Stackelberg game – strong intellectual property rights also underpower creative incentives. We find this especially true for more innovative creators, a phenomenon we term the "originality penalty." Extending this insight to a dynamic model, we find another market failure undermining AI model performance, even for an initially good model: Such a model induces greater reliance by humans on AI-assisted creation, resulting in homogenized content feeding back into training, which degrades the model performance – a "curse of precision." We further propose a market design with a data intermediary internalizing cross-creator externalities and subsidizing innovative contributions, thereby restoring efficiency.