The Inference Report

May 25, 2026

The gap between deployment speed and institutional readiness has become the defining feature of AI's move into production. Google acknowledges it is learning AI security in real time rather than having solved it beforehand. Amazon is selling wearables that collect ambient audio, betting users will accept the privacy tradeoff for convenience. A San Francisco nonprofit is replacing volunteer labor with robots to prepare meals, addressing one logistics problem while creating another about what gets automated when human capacity fails. Robotaxis are being tested in actual traffic because simulation cannot reveal how real drivers will behave around them. The ECB called an emergency meeting with banks after discovering that recent AI models exposed previously unknown or ignored vulnerabilities in financial systems. The pattern is consistent: builders are deploying AI into production environments, wearables, autonomous vehicles, financial infrastructure, and labor workflows before risks are fully mapped. Institutions are reacting rather than leading.

This acceleration is visible in how developers themselves are organizing around AI. The dominant trend on GitHub is not interest in models themselves but in the infrastructure that makes models useful. Code understanding and agent tooling dominate, with repositories like Understand-Anything and CodeGraph converting source code into queryable knowledge graphs that reduce token overhead when working with Claude Code and other editors. The CLAUDE.md approach represents behavioral guidance encoded as configuration rather than fine-tuning. Multica, Pi, and Claude plugin directories reflect a market settling on how to deploy coding agents as persistent, composable workers that track state and accumulate skills. Vertical specialization is emerging through repos like Kronos for financial markets language and cybersecurity skills repositories, offering pre-built knowledge patterns for specific domains. Vector databases and RAG engines have consolidated as the canonical layer between documents and LLM reasoning, with Weaviate and RAGFlow representing the mature end of that market.

Beneath both trends sits a fundamental mismatch: companies and developers are moving at the speed of implementation while regulators, researchers, and risk frameworks operate at the speed of validation. The research literature reflects this gap, with methodological work centered on recovering latent structure from incomplete observations, controlling error under realistic constraints, and bridging statistical guarantees with practical inference. Work on causal discovery, measurement error, and finite-sample concentration shows sustained engagement with the problem of identifying when standard assumptions fail. Yet this rigor exists mostly in academic settings. In production, users, workers, and depositors are bearing the uncertainty while builders and institutions negotiate what safety looks like after deployment.

Grant Calloway

AI LabsAll labs

No lab headlines.

From the WireAll feeds
Research Papers — FocusedAll papers
Pathwise Shrinkage and Probabilistic Calibration of the Multiplicative Half-Cauchy Process stat.ME

We characterize the multiplicative half-Cauchy process through its log-scale random-walk representation, establishing shrinkage, expansion, and critical regimes, almost-sure summability, local rebounds, and effective dimension. We also derive a semi-analytic calibration rule linking interpretable prior probability statements to its scale parameter.

Selective Inference for Clustering Under Unknown Covariance stat.ME

Unsupervised clustering is widely used to discover underlying group structure, after which researchers often seek to validate these groups via post-hoc hypothesis testing on the population means. However, using the same data both to form clusters and to test for a difference in means inflates the Type I error rate. Recent work in selective inference has proposed solutions when the underlying data are drawn from a multivariate Gaussian distribution with a known covariance matrix or an unknown isotropic covariance matrix. We propose a new selective test for the difference in means between two clusters that provably controls the Type I error rate under an arbitrary unknown covariance matrix. Our test statistic does not require estimating the feature covariance matrix; instead, it leverages a Monte Carlo sampling procedure over the set of orthogonal matrices. We show that this new selective test can be computed efficiently, and we derive closed-form solutions when clusters are formed using k-means or hierarchical clustering. In simulations, we demonstrate that our proposed p-value controls the selective Type I error rate and achieves substantial power, and we illustrate its application on gene expression and drug review data sets.

Kernel-based External Validity of Experimental Studies stat.ME

The external validity of a study is the extent to which its findings generalize to unseen experimental conditions, such as datasets. We formalize the results of a study together with its research question, and define external validity as the probability that two independent and same-sized replications of the study produce results whose maximum mean discrepancy (MMD) is below a given tolerance. This approach, centered on the choice of a space of results and of an appropriate reproducing kernel for the MMD, is flexible enough to be deployed on multiple different types of results and research questions. Additionally, we establish an asymptotic power-law relation between the size of a study and the quantiles of the MMD, which we use to estimate the desired size of an externally valid study from a small-scale preliminary study. We deploy our framework to rankings with ties and discuss kernels suited to different research questions. Experiments on existing case studies and on a simulated newly designed study illustrate the applicability of the framework. We release our code as part of the genexpy Python module.

Policy Learning with Weak Signals stat.ME

Policy learning in digital experimentation faces three challenges: weak signal-to-noise ratios, rich covariate spaces, and massive data volumes. We formalize this regime by modeling treatment-effect estimates from increasingly fine covariate partitions as Gaussian observations with bounded signal-to-noise ratios. We establish that, in general, the optimal treatment policy is not learnable in this setting. Even learning the optimal policy value suffers from impractically slow rates. However, when treatment effects vary smoothly, we derive minimax-adaptive policies based on linear smoothers that achieve vanishing welfare regret. We demonstrate the practical value of our framework by applying it to large-scale real-world experiments at Netflix, showing that personalized linear-smoothing policies can dominate unpersonalized policies even in this challenging empirical setting.

A perspective note on likelihood approximation and inference for complex simulation models using a chain of aggregated normalizing flows stat.ME

We present a new perspective on the problem of likelihood approximation within the framework of simulation-based inference that promotes scalable and controllable simulation routines for large-scale data analysis, allows efficient parameter space exploration or smooth interpolation in high-dimensions and, thus, supports valid statistical treatments of hypothesis testings as well as uncertainty quantification. In particular, we consider a chain of $n$-aggregated normalizing flows for likelihood approximation scheme, where a set of upfront replicated observation datasets from the forward complex simulation model pass through the first set of bijective transformations, and then subsequently pass to the other sets of bijective transformations. Here, we assume that, for any $k \in \{1,\,2, \ldots, n\}$, the parameters corresponding to the first $k$ sets of bijective transformations are estimated sequentially, in some sense of optimality, for constructing flexible probability distributions, regardless of the remaining $(n-k)$ sets of bijective transformations. Moreover, our objects of interest are to highlight two complementary mathematical arguments that leverage an informatics-theoretic formalization, based-on empirical likelihood estimators under moment restrictions, and a sequential decision-making paradigm, with mixing distributions, for updating and aggregating the estimated parameters of the overall normalizing flows. As a by-product, the framework provides a reliable surrogate model, conditioned on the model parameters defining the forward computational simulation, that allows samples generation, with statistical powers, and facilitates computationally tractable scheme in the Bayesian paradigm for inference, hypothesis testings and uncertainty quantification.

Where Do Two Populations of Persistence Diagrams Differ? Calibrated Local Inference at a Fixed Budget stat.ME

Many two-sample tests for populations of persistence diagrams assess global differences without identifying the regions of the birth-death plane that contribute to them. We study simultaneous inference for local mean contrasts when the number of available diagrams is fixed. They are differences in expected weighted feature mass within $\ell_\infty$ neighborhoods at several centers and radii. We estimate these contrasts using additive landmark responses. A Gaussian multiplier bootstrap calibrates simultaneous confidence intervals while allowing unequal group covariances. The neighborhoods whose intervals exclude zero form a map with approximate family-wise error control, and selecting a subset of original intervals for display preserves their joint coverage guarantee. On the simultaneous coverage event, every reported neighborhood lies within twice its radius of the support of the mean-measure difference. A geometric result gives sufficient radius conditions for a displaced feature to produce a nonzero contrast. A comparison of sufficient detection thresholds quantifies the tradeoff between reducing the number of tested coordinates and reserving observations for an independent pilot. In simulations with 40 to 120 diagrams per class, the bands achieved 94%-98% simultaneous coverage under both the strict null and equal means with unequal covariances. In the latter setting, a permutation maximum and the pooled-t implementation of the two-stage persistence-image test of Moon and Lazar rejected in up to 32% and 26% of runs, respectively. In the fixed-budget simulations, spending a third of the observations on a pilot to choose landmarks or radii located changes less often than a prespecified grid at a single radius. On the MUTAG benchmark, the localized region concentrates on rings of fused-ring systems, an exploratory reading.

BenchmarksFull tables
Artificial AnalysisIntelligence Index

Composite score across coding, math, and reasoning

#ModelScoretok/s$/1M
1GPT-5.560.266$11.25
2Claude Opus 4.757.347$10.94
3Gemini 3.1 Pro Preview57.2125$4.50
4GPT-5.456.882$5.63
5Qwen3.7 Max56.6198$3.75
SWE-rebench

Agentic coding on real-world software engineering tasks

#ModelScore
1Claude Opus 4.665.3%
2gpt-5.2-2025-12-11-medium64.4%
3GLM-562.8%
4Junie62.8%
5gpt-5.4-2026-03-05-medium62.8%