The finance sector is seeing a rapid increase in the application of machine learning and AI, with Large Language Models (LLMs), ESG (Environmental, Social, and Governance) investing, and AI Safety significantly reshaping the field. This workshop focuses on how these advancements intersect with core financial AI applications. We will foster interdisciplinary discussion on applying LLMs to finance, addressing challenges in multilingual and non-English markets like Korea. The event will also highlight the integration of ESG signals into algorithmic decision-making and explore AI Safety, emphasizing reliability, fairness, and explainability for AI systems in regulated financial environments. By bringing together experts from academia, industry, and regulatory bodies, the workshop aims to stimulate discussions on practical issues, ethical dilemmas, and cutting-edge research shaping financial AI's future. We welcome submissions that combine technical rigor with societal relevance in AI-driven financial decisions.

Recent advancements in Generative AI, such as Large Language Models (LLMs), have demonstrated remarkable success across various general tasks. Extensive studies have explored leveraging generative models in finance, but significant challenges persist. This half-day workshop explores potential approaches and research directions to address these challenges by equipping generative models with advanced Information Retrieval (IR) models. Specifically, this workshop seeks to provide a platform for discussing innovative ideas that facilitate the advancement of IR technology to enrich generative models in finance from four key perspectives: (i) financial IR techniques (ii) financial IR benchmarking and evaluation (iii) financial systems and agents/assistants (iv) and trustworthiness, privacy and security when applying financial IR and generative models. This workshop aims to deepen understanding, accelerate progress, and support the advancement of IR technology to enhance generative models to address financial challenges.

Understanding non-linear relationships among financial instruments has various applications in investment processes ranging from risk management, portfolio construction and trading strategies. Here, we focus on interconnectedness among stocks based on their correlation matrix which we represent as a network with the nodes representing individual stocks and the weighted links between pairs of nodes representing the corresponding pair-wise correlation coefficients. The traditional network science techniques, which are extensively utilized in financial literature, require hand-crafted features such as centrality measures to understand such correlation networks. However, manually enlisting all such hand-crafted features may quickly turn out to be a daunting task. Instead, we propose a new approach for studying nuances and relationships within the correlation network in an algorithmic way using a graph machine learning algorithm called Node2Vec. In particular, the algorithm compresses the network into a lower dimensional continuous space, called an embedding, where pairs of nodes that are identified as similar by the algorithm are placed closer to each other. By using log returns of S&P 500 stock data, we show that our proposed algorithm can learn such an embedding from its correlation network. We define various domain specific quantitative (and objective) and qualitative metrics that are inspired by metrics used in the field of Natural Language Processing (NLP) to evaluate the embeddings and identify the optimal one. Further, we discuss various applications of the embeddings in investment management.

Identifying companies with similar profiles is a core task in finance with a wide range of applications in portfolio construction, asset pricing and risk attribution. When a rigorous definition of similarity is lacking, financial analysts usually resort to ‘traditional’ industry classifications such as Global Industry Classification System (GICS®)l which assign a unique category to each company at different levels of granularity. Due to their discrete nature, though, GICS® classifications do not allow for ranking companies in terms of similarity. In this paper, we explore the ability of pre-trained and finetuned large language models (LLMs) to learn company embeddings based on the business descriptions reported in SEC filings. We show that we can reproduce GICS® classifications using the embed dings as features. We also benchmark these embeddings on various machine learning and financial metrics and conclude that the companies that are similar according to the embeddings are also similar in terms of financial performance metrics including return correlation.

By using the viewpoint of modern computational algebraic geometry, we explore properties of the optimization landscapes of deep linear neural network models. After providing clarification on the various definitions of “flat” minima, we show that the geometrically flat minima, which are merely artifacts of residual continuous symmetries of the deep linear networks, can be straightforwardly removed by a generalized$L_2$-regularization. Then, we establish upper bounds on the number of isolated stationary points of these networks with the help of algebraic geometry. Combining these upper bounds with a method in numerical algebraic geometry, we findallstationary points for modest depth and matrix size. We demonstrate that, in the presence of the non-zero regularization, deep linear networks can indeed possess local minima which are not global minima. Finally, we show that even though the number of stationary points increases as the number of neurons (regularization parameters) increases (decreases), higher index saddles are surprisingly rare.

Belief propagation (BP) is an iterative method to perform approximate inference on arbitrary graphical models. Whether BP converges and if the solution is a unique fixed point depends on both the structure and the parametrization of the model. To understand this dependence it is interesting to find all fixed points. In this work, we formulate a set of polynomial equations, the solutions of which correspond to BP fixed points. To solve such a nonlinear system we present the numerical polynomial-homotopy-continuation (NPHC) method. Experiments on binary Ising models and on error-correcting codes show how our method is capable of obtaining all BP fixed points. On Ising models with fixed parameters we show how the structure influences both the number of fixed points and the convergence properties. We further asses the accuracy of the marginals and weighted combinations thereof. Weighting marginals with their respective partition function increases the accuracy in all experiments. Contrary to the conjecture that uniqueness of BP fixed points implies convergence, we find graphs for which BP fails to converge, even though a unique fixed point exists. Moreover, we show that this fixed point gives a good approximation, and the NPHC method is able to obtain this fixed point.

Function optimization and finding simultaneous solutions of a system of nonlinear equations (SNE) are two closely related and important optimization problems. However, unlike in the case of function optimization in which one is required to find the global minimum and sometimes local minima, a database of challenging SNEs where one is required to find stationary points (extrama and saddle points) is not readily available. In this article, we initiate building such a database of important SNE (which also includes related function optimization problems), arising from Science, Engineering and Economics. After providing a short review of the most commonly used mathematical and computational approaches to find solutions of such systems, we provide a preliminary list of challenging problems by writing the Mathematical formulation down, briefly explaning the origin and importance of the problem and giving a short account on the currently known results, for each of the problems. We anticipate that this database will not only help benchmarking novel numerical methods for solving SNEs and function optimization problems but also will help advancing the corresponding research areas.