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

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Research Papers — FocusedAll papers
Aggregate Disambiguation Systems stat.ME

Natural-language tasks can elicit different verdicts from protocol-following evaluators that receive the same declared information. We study aggregate disambiguation systems (ADSs). Given a task and a candidate solution, each evaluator casts a binary vote on whether the solution should be accepted, and the system aggregates the votes of a finite panel. The target is protocol reproducibility relative to an explicitly declared evaluator reference, not semantic truth. We separate fixed finite censuses, probabilistic evaluator populations, and growing-census limits, since their endpoint laws and guarantees are not interchangeable. In the population setting, we use finite samples to estimate how often a finite panel reaches the same decision as the declared evaluator population. We provide a lower confidence bound on the fraction of candidate solutions for which the disagreement probability is at most a chosen tolerance. The calculation accounts separately for sampling candidate solutions and sampling evaluators. The construction permits arbitrary dependence among columns induced by shared evaluator rows and uses exact binomial intervals at the evaluator layer and an exact one-sided binomial inversion at the generator layer. Simulations check the implementation against known population coverages and expose power limitations.

Learning a Size-Weight Frontier for Synthetic-Augmented Inference stat.ME

Synthetic data can improve statistical inference when real data are scarce, but naively treating synthetic samples as real data can introduce bias and lead to unreliable inference. We develop a general framework for synthetic-augmented inference across a population of related tasks. It characterizes synthetic augmentation by the number of synthetic observations and their weight. Central to our framework is a size-weight frontier that specifies, for each weight, the largest synthetic sample size for which all smaller sizes attain the target task-marginal coverage. We estimate this frontier from historical tasks, and establish a finite-sample coverage guarantee simultaneously for all size-weight configurations on or below the estimated frontier. In experiments using large language model responses to augment opinion survey data, our procedure achieves target coverage and substantially narrows confidence intervals.

SAUSS: Stochastic Approximation with Unbiased Simulated Scores for Limited Dependent Variable Models stat.ME

Multinomial choice models allow flexible substitution patterns but become computationally demanding with many alternatives or observations. With a fixed per-observation simulation budget, simulated maximum likelihood introduces simulation bias, while each optimization step requires a full-sample likelihood evaluation. We propose Stochastic Approximation with Unbiased Simulated Scores (SAUSS), an averaged stochastic approximation based on conditionally unbiased mini-batch score estimates. Each iteration uses a fixed mini-batch regardless of sample size. For multinomial probit, accept-reject sampling provides exact conditional draws and unbiased score estimates for any fixed number of accepted draws. Under local conditions, asymptotic theory for the averaged estimator and the partial-sum process of the SAUSS iterates incorporates mini-batch and simulation variability and supports random-scaling and plug-in inference. In simulations and an application, SAUSS gives comparable results in less than 1% of the computation time of simulated maximum likelihood. SAUSS extends to limited dependent variable models with conditional-expectation score representations and exact conditional sampling.

Functional linear regression from sparse to dense designs: a pooling-ridge method and minimax optimality stat.ME

Functional data analysis is an important statistical field that treats data as random functions. In practice, the random functions are often not fully observed but instead measured at discrete times. While simpler problems, such as mean and covariance estimation, have been widely studied for discretely observed data, optimal estimation of linear regression for this data type has remained unsolved for over two decades. To tackle this fundamental challenge, we propose a novel approach, referred to as pooling ridge estimation, which combines the advantages of pooling strategy and RKHS-based method by incorporating the unbiased estimation of operators based on discretely observed measurements from all subjects. This unified estimation framework enables us to achieve minimax optimality in prediction risk in arbitrary sampling schemes ranging from sparse to dense designs, for both scalar-on-function and function-on-function regression models. Such methodological and theoretical advances are obtained for the first time and accurately reveal the influence of discrete sampling. For scalar-on-function regression, the phase transition occurs once, separating the convergence behavior into two distinct regimes. Remarkably, for function-on-function regression, up to three phase transitions may occur, determined by the sampling frequencies of the predictor/response functions. Finally, simulation experiments and two real data examples provide empirical support for the proposed methods.

Controlling for Omitted Variable Bias in Deep Neural Networks stat.ME

Control variables are widely used in statistical modelling to account for omitted variable bias of known confounders. However, they have largely been underexplored in deep learning. This is surprising, given that deep learning models encode image-inferable covariates, such as demographic variables, into their predictions when these covariates are correlated with the outcome---a form of omitted variable bias referred to as 'shortcut learning'. While many existing confound-control or fairness methods try to restrict the correlation of such covariates with model predictions, we show that this fails to correct for omitted variable bias. We therefore propose a control variable approach for deep learning models, based on generalised additive modelling of the effects of model inputs and covariates. As flexible additive models can suffer from concurvity, we introduce an estimation procedure that refits the final layer of a pre-trained network to include covariate effects, using cross-fitting with ridge penalisation. We show how these effects can be orthogonalised with respect to covariates to exclude their mediated effects and that model predictions can be marginalised over the covariate distribution to control for their effect. This yields unbiased, interpretable predictions and offers flexibility to model the desired effects depending on the scientific or fairness objective. We verify our approach using simulated images, and demonstrate consistent estimation of true effects. Existing methods either require more data or fail to recover the true effects. We apply our method to real neuroimaging data with experimentally induced confounding, where it recovers prediction performance to near the level of a model trained on unconfounded data. Code is available at https://github.com/mpff/cocodeel.

Barycentric Fused Gromov-Wasserstein Balancing for Causal Inference under Multiple Treatments stat.ME

Estimating heterogeneous single and interaction treatment effects from observational data under multiple simultaneous treatments is crucial for decision-making. To mitigate estimation variance, previous studies balance representation distributions between every pair of treatment patterns. However, such pairwise balancing scales quadratically with the number of treatment patterns and fails to preserve consistent local proximity structures across patterns, which degrades counterfactual estimation. To address these challenges, we propose the Causal Inference for Heterogeneous Single and Interaction Treatment Effects Network (CIHSI-Net), a deep learning framework built on a novel Barycentric Fused Gromov-Wasserstein Balancing (BFG-WB) objective. BFG-WB aligns the representation distribution of each treatment pattern with a shared Wasserstein barycenter, achieving global alignment while reducing the computational complexity from quadratic to linear, and its Fused Gromov-Wasserstein discrepancy preserves the local proximity structures essential for reliable heterogeneous effect estimation. Simulation studies show that CIHSI-Net consistently outperforms state-of-the-art baselines, and an application to real-world marketing data demonstrates its practical utility in complex multi-treatment scenarios.

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%