Embedding-Aware Feature Discovery: Bridging Latent Representations and Interpretable Features in Event Sequences

2026-03-16

Technology Category

Machine Learning: Feature Construction/ReformulationNatural Language Processing: (Large) Language ModelsSearch and Optimization: Learning to Search

Application Category

Semantics and Knowledge: Data modeling to support human-machine intelligence, including LLMs agents, intelligent system behavior, explanations, and user-friendly interactionsEconomics, Online Markets and Human Computation: Cost models of using LLMs in production systemsSearch and Retrieval-Augmented AI: Search Tool Learning with LLM: Teaching LLMs to invoke search and make use of retrieved information

Abstract

Industrial financial systems operate on temporal event sequences such as transactions, user actions, and system logs. While recent research emphasizes representation learning and large language models, production systems continue to rely heavily on handcrafted statistical features due to their interpretability, robustness under limited supervision, and strict latency constraints. This creates a persistent disconnect between learned embeddings and feature-based pipelines. We introduce Embedding-Aware Feature Discovery (EAFD), a unified framework that bridges this gap by coupling pretrained event-sequence embeddings with a self-reflective LLM-driven feature generation agent. EAFD iteratively discovers, evaluates, and refines features directly from raw event sequences using two complementary criteria: \emph{alignment}, which explains information already encoded in embeddings, and \emph{complementarity}, which identifies predictive signals missing from them. Across both open-source and industrial transaction benchmarks, EAFD consistently outperforms embedding-only and feature-based baselines, achieving relative gains of up to $+5.8\%$ over state-of-the-art pretrained embeddings, resulting in new state-of-the-art performance across event-sequence datasets.

Similar Papers

Understanding Generative AI Content with Embedding Models

2024-08-19arXiv.orgCitations: 1