Timing is important: Risk-aware Fund Allocation based on Time-Series Forecasting

Fund allocation has been an increasingly important problem in the financial domain. In reality, we aim to allocate the funds to buy certain assets within a certain future period. Naive solutions such as prediction-only or Predict-then-Optimize approaches suffer from goal mismatch. Additionally, the introduction of the SOTA time series forecasting model inevitably introduces additional uncertainty in the predicted result. To solve both problems mentioned above, we introduce a Risk-aware Time-Series Predict-and-Allocate (RTS-PnO) framework, which holds no prior assumption on the forecasting models. Such a framework contains three features: (i) end-to-end training with objective alignment measurement, (ii) adaptive forecasting uncertainty calibration, and (iii) agnostic towards forecasting models. The evaluation of RTS-PnO is conducted over both online and offline experiments. For offline experiments, eight datasets from three categories of financial applications are used: Currency, Stock, and Cryptos. RTS-PnO consistently outperforms other competitive baselines. The online experiment is conducted on the Cross-Border Payment business at FiT, Tencent, and an 8.4\% decrease in regret is witnessed when compared with the product-line approach. The code for the offline experiment is available at https://github.com/fuyuanlyu/RTS-PnO.

The Panaceas for Improving Low-Rank Decomposition in Communication-Efficient Federated Learning

To improve the training efficiency of federated learning (FL), previous research has employed low-rank decomposition techniques to reduce communication overhead. In this paper, we seek to enhance the performance of these low-rank decomposition methods. Specifically, we focus on three key issues related to decomposition in FL: what to decompose, how to decompose, and how to aggregate. Subsequently, we introduce three novel techniques: Model Update Decomposition (MUD), Block-wise Kronecker Decomposition (BKD), and Aggregation-Aware Decomposition (AAD), each targeting a specific issue. These techniques are complementary and can be applied simultaneously to achieve optimal performance. Additionally, we provide a rigorous theoretical analysis to ensure the convergence of the proposed MUD. Extensive experimental results show that our approach achieves faster convergence and superior accuracy compared to relevant baseline methods. The code is available at https://github.com/Leopold1423/fedmud-icml25.

Beyond Zero Initialization: Investigating the Impact of Non-Zero Initialization on LoRA Fine-Tuning Dynamics

Low-rank adaptation (LoRA) is a widely used parameter-efficient fine-tuning method. In standard LoRA layers, one of the matrices, $A$ or $B$, is initialized to zero, ensuring that fine-tuning starts from the pretrained model. However, there is no theoretical support for this practice. In this paper, we investigate the impact of non-zero initialization on LoRA's fine-tuning dynamics from an infinite-width perspective. Our analysis reveals that, compared to zero initialization, simultaneously initializing $A$ and $B$ to non-zero values improves LoRA's robustness to suboptimal learning rates, particularly smaller ones. Further analysis indicates that although the non-zero initialization of $AB$ introduces random noise into the pretrained weight, it generally does not affect fine-tuning performance. In other words, fine-tuning does not need to strictly start from the pretrained model. The validity of our findings is confirmed through extensive experiments across various models and datasets. The code is available at https://github.com/Leopold1423/non_zero_lora-icml25.

Semantic Retrieval Augmented Contrastive Learning for Sequential Recommendation

Sequential recommendation aims to model user preferences based on historical behavior sequences, which is crucial for various online platforms. Data sparsity remains a significant challenge in this area as most users have limited interactions and many items receive little attention. To mitigate this issue, contrastive learning has been widely adopted. By constructing positive sample pairs from the data itself and maximizing their agreement in the embedding space,it can leverage available data more effectively. Constructing reasonable positive sample pairs is crucial for the success of contrastive learning. However, current approaches struggle to generate reliable positive pairs as they either rely on representations learned from inherently sparse collaborative signals or use random perturbations which introduce significant uncertainty. To address these limitations, we propose a novel approach named Semantic Retrieval Augmented Contrastive Learning (SRA-CL), which leverages semantic information to improve the reliability of contrastive samples. SRA-CL comprises two main components: (1) Cross-Sequence Contrastive Learning via User Semantic Retrieval, which utilizes large language models (LLMs) to understand diverse user preferences and retrieve semantically similar users to form reliable positive samples through a learnable sample synthesis method; and (2) Intra-Sequence Contrastive Learning via Item Semantic Retrieval, which employs LLMs to comprehend items and retrieve similar items to perform semantic-based item substitution, thereby creating semantically consistent augmented views for contrastive learning. SRA-CL is plug-and-play and can be integrated into standard sequential recommendation models. Extensive experiments on four public datasets demonstrate the effectiveness and generalizability of the proposed approach.

A Predict-Then-Optimize Customer Allocation Framework for Online Fund Recommendation

With the rapid growth of online investment platforms, funds can be distributed to individual customers online. The central issue is to match funds with potential customers under constraints. Most mainstream platforms adopt the recommendation formulation to tackle the problem. However, the traditional recommendation regime has its inherent drawbacks when applying the fund-matching problem with multiple constraints. In this paper, we model the fund matching under the allocation formulation. We design PTOFA, a Predict-Then-Optimize Fund Allocation framework. This data-driven framework consists of two stages, i.e., prediction and optimization, which aim to predict expected revenue based on customer behavior and optimize the impression allocation to achieve the maximum revenue under the necessary constraints, respectively. Extensive experiments on real-world datasets from an industrial online investment platform validate the effectiveness and efficiency of our solution. Additionally, the online A/B tests demonstrate PTOFA's effectiveness in the real-world fund recommendation scenario.

Training Agents with Weakly Supervised Feedback from Large Language Models

Large Language Models (LLMs) offer a promising basis for creating agents that can tackle complex tasks through iterative environmental interaction. Existing methods either require these agents to mimic expert-provided trajectories or rely on definitive environmental feedback for reinforcement learning which limits their application to specific scenarios like gaming or code generation. This paper introduces a novel training method for LLM-based agents using weakly supervised signals from a critic LLM, bypassing the need for expert trajectories or definitive feedback. Our agents are trained in iterative manner, where they initially generate trajectories through environmental interaction. Subsequently, a critic LLM selects a subset of good trajectories, which are then used to update the agents, enabling them to generate improved trajectories in the next iteration. Extensive tests on the API-bank dataset show consistent improvement in our agents' capabilities and comparable performance to GPT-4, despite using open-source models with much fewer parameters.

Fusion Matters: Learning Fusion in Deep Click-through Rate Prediction Models

The evolution of previous Click-Through Rate (CTR) models has mainly been driven by proposing complex components, whether shallow or deep, that are adept at modeling feature interactions. However, there has been less focus on improving fusion design. Instead, two naive solutions, stacked and parallel fusion, are commonly used. Both solutions rely on pre-determined fusion connections and fixed fusion operations. It has been repetitively observed that changes in fusion design may result in different performances, highlighting the critical role that fusion plays in CTR models. While there have been attempts to refine these basic fusion strategies, these efforts have often been constrained to specific settings or dependent on specific components. Neural architecture search has also been introduced to partially deal with fusion design, but it comes with limitations. The complexity of the search space can lead to inefficient and ineffective results. To bridge this gap, we introduce OptFusion, a method that automates the learning of fusion, encompassing both the connection learning and the operation selection. We have proposed a one-shot learning algorithm tackling these tasks concurrently. Our experiments are conducted over three large-scale datasets. Extensive experiments prove both the effectiveness and efficiency of OptFusion in improving CTR model performance. Our code implementation is available here\url{https://github.com/kexin-kxzhang/OptFusion}.

Comprehending Knowledge Graphs with Large Language Models for Recommender Systems

Recently, the introduction of knowledge graphs (KGs) has significantly advanced recommender systems by facilitating the discovery of potential associations between items. However, existing methods still face several limitations. First, most KGs suffer from missing facts or limited scopes. This can lead to biased knowledge representations, thereby constraining the model's performance. Second, existing methods typically convert textual information into IDs, resulting in the loss of natural semantic connections between different items. Third, existing methods struggle to capture high-order relationships in global KGs due to their inefficient layer-by-layer information propagation mechanisms, which are prone to introducing significant noise. To address these limitations, we propose a novel method called CoLaKG, which leverages large language models (LLMs) for knowledge-aware recommendation. The extensive world knowledge and remarkable reasoning capabilities of LLMs enable them to supplement KGs. Additionally, the strong text comprehension abilities of LLMs allow for a better understanding of semantic information. Based on this, we first extract subgraphs centered on each item from the KG and convert them into textual inputs for the LLM. The LLM then outputs its comprehension of these item-centered subgraphs, which are subsequently transformed into semantic embeddings. Furthermore, to utilize the global information of the KG, we construct an item-item graph using these semantic embeddings, which can directly capture higher-order associations between items. Both the semantic embeddings and the structural information from the item-item graph are effectively integrated into the recommendation model through our designed representation alignment and neighbor augmentation modules. Extensive experiments on four real-world datasets demonstrate the superiority of our method.

Mixed-Precision Embeddings for Large-Scale Recommendation Models

Embedding techniques have become essential components of large databases in the deep learning era. By encoding discrete entities, such as words, items, or graph nodes, into continuous vector spaces, embeddings facilitate more efficient storage, retrieval, and processing in large databases. Especially in the domain of recommender systems, millions of categorical features are encoded as unique embedding vectors, which facilitates the modeling of similarities and interactions among features. However, numerous embedding vectors can result in significant storage overhead. In this paper, we aim to compress the embedding table through quantization techniques. Given that features vary in importance levels, we seek to identify an appropriate precision for each feature to balance model accuracy and memory usage. To this end, we propose a novel embedding compression method, termed Mixed-Precision Embeddings (MPE). Specifically, to reduce the size of the search space, we first group features by frequency and then search precision for each feature group. MPE further learns the probability distribution over precision levels for each feature group, which can be used to identify the most suitable precision with a specially designed sampling strategy. Extensive experiments on three public datasets demonstrate that MPE significantly outperforms existing embedding compression methods. Remarkably, MPE achieves about 200x compression on the Criteo dataset without comprising the prediction accuracy.

End-to-End Cost-Effective Incentive Recommendation under Budget Constraint with Uplift Modeling

In modern online platforms, incentives are essential factors that enhance user engagement and increase platform revenue. Over recent years, uplift modeling has been introduced as a strategic approach to assign incentives to individual customers. Especially in many real-world applications, online platforms can only incentivize customers with specific budget constraints. This problem can be reformulated as the multi-choice knapsack problem. This optimization aims to select the optimal incentive for each customer to maximize the return on investment. Recent works in this field frequently tackle the budget allocation problem using a two-stage approach. However, this solution is confronted with the following challenges: (1) The causal inference methods often ignore the domain knowledge in online marketing, where the expected response curve of a customer should be monotonic and smooth as the incentive increases. (2) An optimality gap between the two stages results in inferior sub-optimal allocation performance due to the loss of the incentive recommendation information for the uplift prediction under the limited budget constraint. To address these challenges, we propose a novel End-to-End Cost-Effective Incentive Recommendation (E3IR) model under budget constraints. Specifically, our methods consist of two modules, i.e., the uplift prediction module and the differentiable allocation module. In the uplift prediction module, we construct prediction heads to capture the incremental improvement between adjacent treatments with the marketing domain constraints (i.e., monotonic and smooth). We incorporate integer linear programming (ILP) as a differentiable layer input in the allocation module. Furthermore, we conduct extensive experiments on public and real product datasets, demonstrating that our E3IR improves allocation performance compared to existing two-stage approaches.