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Yajie Yang, Yuqing Zhao, Xiaochao Xi, Yinan Zhu

Artificial Intelligence Generated Content (AIGC) assisting image production triggers controversy in journalism while attracting attention from media agencies. Key issues involve misinformation, authenticity, semantic fidelity, and interpretability. Most AIGC tools are opaque “black boxes,” hindering the dual demands of content accuracy and semantic alignment and creating ethical, sociotechnical, and trust dilemmas. This paper explores pathways for controllable image production in journalism’s special coverage and conducts two experiments with projects from China’s media agency: (1) Experiment 1 tests cross-platform adaptability via standardized prompts across three scenes, revealing disparities in semantic alignment, cultural specificity, and visual realism driven by training-corpus bias and platform-level filtering. (2) Experiment 2 builds a human-in-the-loop modular pipeline combining high-precision segmentation (SAM, GroundingDINO), semantic alignment (BrushNet), and style regulating (Style-LoRA, Prompt-to-Prompt), ensuring editorial fidelity through CLIP-based semantic scoring, NSFW/OCR/YOLO filtering, and verifiable content credentials. Traceable deployment preserves semantic representation. Consequently, we propose a human-AI collaboration mechanism for AIGC assisted image production in special coverage and recommend evaluating Character Identity Stability (CIS), Cultural Expression Accuracy (CEA), and User-Public Appropriateness (U-PA).

Qihao Yang, Xuelin Wang, Jiale Chen, Xuelian Dong, Yuxin Hao, Tianyong Hao

Language acquisition is vital to revealing the nature of human language intelligence and has recently emerged as a promising perspective for improving the interpretability of large language models (LLMs). However, it is ethically and practically infeasible to conduct experiments that require controlling human learners' language inputs. This poses challenges for the verifiability and scalability of language acquisition modeling, particularly in Chinese second language acquisition (SLA). While LLMs provide a controllable and reproducible alternative, a systematic benchmark to support phase-wise modeling and assessment is still lacking. To address these issues, we propose HSKBenchmark, the first benchmark for staged modeling and writing assessment of LLMs in Chinese SLA. The benchmark covers HSK levels 3 to 6, comprising authentic textbooks with 6.76M tokens, 16K synthetic instruction data, 30 test topics and a linguistically-grounded evaluation system. To simulate human acquisition trajectories, a curriculum-tuning framework is introduced, which trains LLMs in a progression from beginner to advanced proficiency levels. Since language production in writing is a key perspective for observing SLA development, an evaluation system is established to probe LLMs in writing, including the coverage of level-based grammar items, writing errors, lexical complexity, syntactic complexity, and holistic scoring. We also develop an HSKAgent fine-tuned on 10K compositions from Chinese second language learners to automate this evaluation system. Extensive experimental results demonstrate that HSKBenchmark not only models Chinese SLA effectively, but also serves as a reliable benchmark for dynamic writing assessment in LLMs. Our fine-tuned LLMs have writing performance on par with advanced human learners and exhibit human-like acquisition characteristics. The HSKBenchmark, HSKAgent, and checkpoints serve as foundational tools and resources, with the potential to pave the way for future research on language acquisition modeling and LLMs interpretability.

Yin Wu, Zhengxuan Zhang, Jiayu Chen, Chang Xu, Yuyu Luo, Nan Tang, Hui Xiong

Oracle Bone Script, East Asia's earliest mature writing system from over 3,500 years ago, encodes ancient cognition through visual metaphors, yet remains largely undeciphered and inaccessible, severing modern society from its cultural roots. Traditional AI methods, while accurate in classification, treat glyphs as opaque data, neglecting their pictographic essence and failing to foster public understanding—exacerbating a heritage crisis amid linguistic evolution. We pioneer a paradigm shift toward AI-driven cultural democratization, introducing OracleVis, the first human-validated multimodal dataset of glyph-image-explanation triplets, curated through expert collaborations to overcome data scarcity, bias, and incompleteness in archaeological sources. Building on this, OBS-VM, an explainability-centric multimodal large language model fine-tuned on Qwen2-VL-7B, models pictographic reasoning by balancing semantic fidelity with interpretive transparency, transforming black-box predictions into cognition-aligned narratives. Rigorous evaluations, including benchmarks and a user study with 24 non-experts, reveal our system's superiority: it outperforms GPT-4o in pictographic rationality (3.79 vs. 3.58 in human evaluation) and achieves a 35.3% relative improvement in recognition accuracy, while interactive learning boosts knowledge gains (+5.5 vs. +1.7), interest (+1.9 vs. +0.4), and confidence (+2.0 vs. +0.3) over static methods. This work illuminates AI's potential to bridge ancient wisdom and contemporary audiences, redefining heritage preservation as an inclusive, socially impactful endeavor that turns cultural alienation into enlightened engagement.

Jinge Wu, Zhaolong Wu, Ruizhe Li, Tong Chen, Abul Hasan, Yunsoo Kim, Jason Pui-Yin Cheung, Teng Zhang, Honghan Wu

The increasing complexity and workload of clinical radiology leads to inevitable oversights and mistakes in their use as diagnostic tools, causing delayed treatments and sometimes life-threatening harm to patients. While large language models (LLMs) have shown remarkable progress in many tasks, their utilities in detecting and correcting errors in radiology reporting are limited. This paper proposes a novel dual-knowledge infusion framework that enhances LLMs' capability for radiology report proofreading through systematic integration of medical expertise. Specifically, the knowledge infusion combines medical knowledge graph distillation (MKGD) with external knowledge retrieval (EXKR), enabling an effective automated approach in tackling mistakes in radiology reporting. By decomposing the complex proofreading task into three specialized stages of detection, localization, and correction, our method mirrors the systematic review process employed by expert radiologists, ensuring both precision and clinical interpretability. To perform a robust, clinically relevant evaluation, a comprehensive benchmark is also proposed using real-world radiology reports with real-world error patterns, including speech recognition confusions, terminology ambiguities, and template-related inconsistencies. Extensive evaluations across multiple LLM architectures demonstrate substantial improvements of our approach: up to 31.56% increase in error detection accuracy and 37.4% reduction in processing time. Human evaluation by radiologists confirms superior clinical relevance and factual consistency compared to existing approaches.

Siqi Sun, Ben Peng Wu, Mali Jin, Peizhen Bai, Hanpei Zhang, Xingyi Song

As corporate responsibility increasingly incorporates environmental, social, and governance (ESG) criteria, ESG reporting is becoming a legal requirement in many regions and a key channel for documenting sustainability practices and assessing firms’ long-term and ethical performance. However, the length and complexity of ESG disclosures make them difficult to interpret and automate the analysis reliably. To support scalable and trustworthy analysis, this paper introduces ESG-Bench, a benchmark dataset for ESG report understanding and hallucination mitigation in large language models (LLMs). ESG-Bench contains human-annotated question–answer (QA) pairs grounded in real-world ESG report contexts, with fine-grained labels indicating whether model outputs are factually supported or hallucinated. Framing ESG report analysis as a QA task with verifiability constraints enables systematic evaluation of LLMs’ ability to extract and reason over ESG content and provides a new use case: mitigating hallucinations in socially sensitive, compliance-critical settings. We design task-specific Chain-of-Thought (CoT) prompting strategies and fine-tune multiple state-of-the-art LLMs on ESG-Bench using CoT-annotated rationales. Our experiments show that these CoT-based methods substantially outperform standard prompting and direct fine-tuning in reducing hallucinations, and that the gains transfer to existing QA benchmarks beyond the ESG domain.

Haotian Sun, Jessie Zixin Li, John M. Marshall

Understanding the complex host-seeking behavior of disease vectors such as mosquito is critical for predicting disease transmission and vector control. This behavior arises from a dynamic interplay between multi-modal sensory cues and internal behavioral states, a process challenging traditional ODE frameworks due to its inherent stochasticity and discrete, state-based nature. We introduce the Behavioral State Attention Network (BSAN), a deep learning architecture designed to model the underlying sensorimotor computations of this behavior. BSAN utilizes a recurrent neural network (RNN) with an LSTM core to process temporal sequences, incorporating a variational encoder to capture the randomness of flight paths and a Mixture Density Network (MDN) to predict multi-modal velocity distributions. The architecture explicitly models distinct behavioral states, such as $CO_2$ plume tracking and thermal approach, through a Mixture-of-Experts (MoE) framework, and learns to interpretably integrate olfactory, thermal, and visual inputs using a cross-modal attention mechanism. The network generates realistic flight trajectories that exhibit emergent host-seeking behaviors. By providing both trajectory predictions and interpretable behavioral primitives, BSAN serves as a framework for downstream applications in landscape genomics and vector control, enabling the prediction of mosquito population connectivity through environment-specific movement kernels.

Siddhant Bikram Shah, Kristina T. Johnson

Understanding the communicative behaviors of non- and minimally-speaking individuals with autism spectrum disorder (ASD) and complex neurodevelopmental disorders (NDDs) remains a critical challenge for both clinical support and machine learning (ML) research. However, developing automated systems for this task is hindered by data scarcity, privacy concerns, heterogeneous and idiosyncratic behaviors, and the significant domain shift from neurotypical to neurodiverse populations. To address these challenges, we first present a novel, large-scale, privacy-preserving action recognition dataset with 2,721 3D skeleton samples capturing in-home interactions of individuals with ASD and complex NDDs. Second, we propose AXON, a novel cross-modal knowledge distillation method that transfers the rich semantic understanding of a pre-trained CLIP model to a graph-based Hyperformer model, outperforming other cross-modal knowledge distillation baselines in action recognition. We further introduce a gradient-based interpretability method to characterize how individuals with ASD and complex NDDs perform communicative actions. Our analysis uncovers both individual- and population-level communicative styles, tendencies, and biases. Our foundational study helps spur the development of more adaptive and personalized augmentative technologies, aiming to foster greater communicative autonomy and understanding for this underserved population.

Zhixiang Lu, Yulong Li, Feilong Tang, Zhengyong Jiang, Chong Li, Mian Zhou, Tenglong Li, Jionglong Su

Large-scale tuberculosis (TB) screening is limited by the high cost and operational complexity of traditional diagnostics, creating a need for artificial-intelligence solutions. We propose DeepGB-TB, a non-invasive system that instantly assigns TB risk scores using only cough audio and basic demographic data. The model couples a lightweight one-dimensional convolutional neural network for audio processing with a gradient-boosted decision tree for tabular features. Its principal innovation is a Cross-Modal Bidirectional Cross-Attention module (CM-BCA) that iteratively exchanges salient cues between modalities, emulating the way clinicians integrate symptoms and risk factors. To meet the clinical priority of minimizing missed cases, we design a Tuberculosis Risk-Balanced Loss (TRBL) that places stronger penalties on false-negative predictions, thereby reducing high-risk misclassifications. DeepGB-TB is evaluated on a diverse dataset of 1,105 patients collected across seven countries, achieving an AUROC of 0.903 and an F1-score of 0.851, representing a new state of the art. Its computational efficiency enables real-time, offline inference directly on common mobile devices, making it ideal for low-resource settings. Importantly, the system produces clinically validated explanations that promote trust and adoption by frontline health workers. By coupling AI innovation with public-health requirements for speed, affordability, and reliability, DeepGB-TB offers a tool for advancing global TB control.

Liu Liu, Alexandra Schild, Marco Cipriano, Fatimeh Al Ghannam, Freya Tan, Gerard De Melo, Andres Sevtsuk

Understanding group-level social interactions in public spaces is crucial for urban planning, informing the design of socially vibrant and inclusive environments. Detecting such interactions from images involves interpreting subtle visual cues such as relations, proximity and co-movement – semantically complex signals that go beyond traditional object detection. To address this challenge, we introduce a social group region detection task, which requires inferring and spatially grounding visual regions defined by abstract interpersonal relations. We propose MINGLE (Modeling INterpersonal Group-Level Engagement), a modular three-stage pipeline that integrates: (1) off-the-shelf human detection and depth estimation, (2) VLM-based reasoning to classify pairwise social affiliation, and (3) a lightweight spatial aggregation algorithm to localize socially connected groups. To support this task and encourage future research, we present a new dataset of 100K urban street-view images annotated with bounding boxes and labels for both individuals and socially interacting groups. The annotations combine human-created labels and outputs from the MINGLE pipeline, ensuring semantic richness and broad coverage of real world scenarios.

Naiyi Li, Zihui Ma, Runlong Yu, Lingyao Li

Digital Twins (DTs) offer powerful tools for managing complex infrastructure systems, but their effectiveness is often limited by challenges in integrating unstructured knowledge. Recent advances in Large Language Models (LLMs) bring new potential to address this gap, with strong abilities in extracting and organizing diverse textual information. We therefore propose LSDTs (LLM-Augmented Semantic Digital Twins), a framework that helps LLMs extract planning knowledge from unstructured documents like environmental regulations and technical guidelines, and organize it into a formal ontology. This ontology forms a semantic layer that powers a digital twin—a virtual model of the physical system—allowing it to simulate realistic, regulation-aware planning scenarios. We evaluate LSDTs through a case study of offshore wind farm planning in Maryland, including its application during Hurricane Sandy. Results demonstrate that LSDTs support interpretable, regulation-aware layout optimization, enable high-fidelity simulation, and enhance adaptability in infrastructure planning. This work shows the potential of combining generative AI with digital twins to support complex, knowledge-driven planning tasks.

Hao Li, Haotian Chen, Ruoyuan Gong, Juanjuan Wang, Hao Jiang

Redistricting plays a central role in shaping how votes are translated into political power. While existing computational methods primarily aim to generate large ensembles of legally valid districting plans, they often neglect the strategic dynamics involved in the selection process. This oversight creates opportunities for partisan actors to cherry-pick maps that, while technically compliant, are politically advantageous. Simply satisfying formal constraints does not ensure fairness when the selection process itself can be manipulated. We propose Agentmandering, a framework that reimagines redistricting as a turn-based negotiation between two agents representing opposing political interests. Drawing inspiration from game-theoretic ideas, particularly the Choose-and-Freeze protocol, our method embeds strategic interaction into the redistricting process via large language model (LLM) agents. Agents alternate between selecting and freezing districts from a small set of candidate maps, gradually partitioning the state through constrained and interpretable choices. Evaluation on post-2020 U.S. Census data across all states shows that Agentmandering significantly reduces partisan bias and unfairness, while achieving 2 to 3 orders of magnitude lower variance than standard baselines. These results demonstrate both fairness and stability, especially in swing-state scenarios.

Bingxuan Li, Pengyi Shi, Amy R Ward

Predictive modeling in high-stakes domains often suffers from limited observed features due to ethical and practical constraints. To address this challenge, we propose a novel approach that formulates latent feature mining as a text-to-text propositional logic reasoning task, facilitating domain knowledge integration and improving the interpretability of latent features. We design FLAME, a domain knowledge-augmented reasoning framework for latent feature mining, offering an efficient training paradigm to strengthen the domain-specific reasoning capabilities of large language models (LLMs) for latent feature extraction. The goal of our framework is to augment observed features with inferred latent features, enhancing the performance of predictive models in downstream machine learning tasks. We validate our approach through two case studies: (1) the criminal justice system, where data collection is ethically challenging and inherently limited, and (2) the healthcare domain, where patient privacy concerns and the complexity of medical data restrict comprehensive feature collection. Experimental results demonstrate that the inferred latent features significantly enhance the performance of downstream classifiers by over 10%.

Deuksin Kwon, Kaleen Shrestha, Bin Han, Spencer Lin, James Hale, Jonathan Gratch, Maja Mataric, Gale M. Lucas

Large language models (LLMs) are increasingly used to simulate human behavior in social settings such as legal mediation, negotiation, and dispute resolution. However, it remains unclear whether these simulations reproduce the personality–behavior patterns observed in humans. Human personality, for instance, shapes how individuals navigate social interactions, including strategic choices and behaviors in emotionally charged interactions. This raises the question: Can LLMs, when prompted with personality traits, reproduce personality-driven differences in human conflict behavior? To explore this, we introduce an evaluation framework that enables direct comparison of human-human and LLM-LLM behaviors in dispute resolution dialogues with respect to Big Five Inventory (BFI) personality traits. This framework provides a set of interpretable metrics related to strategic behavior and conflict outcomes. We additionally contribute a novel dataset creation methodology for LLM dispute resolution dialogues with matched scenarios and personality traits with respect to human conversations. Finally, we demonstrate the use of our evaluation framework with three contemporary closed-source LLMs and show significant divergences in how personality manifests in conflict across different LLMs compared to human data, challenging the assumption that personality-prompted agents can serve as reliable behavioral proxies in socially impactful applications. Our work highlights the need for psychological grounding and validation in AI simulations before real-world use.

Shufeng Kong, Zijie Wang, Nuan Cui, Hao Tang, Yihan Meng, Yuanyuan Wei, Feifan Chen, Yingheng Wang, Zhuo Cai, Yaonan Wang 等

Automated interpretation of medical images demands robust modeling of complex visual-semantic relationships while addressing annotation scarcity, label imbalance, and clinical plausibility constraints. We introduce MIRNet (Medical Image Reasoner Network), a novel framework that integrates self-supervised pre-training with constrained graph-based reasoning. Tongue image diagnosis is a particularly challenging domain that requires fine-grained visual and semantic understanding. Our approach leverages self-supervised masked autoencoder (MAE) to learn transferable visual representations from unlabeled data; employs graph attention networks (GAT) to model label correlations through expert-defined structured graphs; enforces clinical priors via constraint-aware optimization using KL divergence and regularization losses; and mitigates imbalance using asymmetric loss (ASL) and boosting ensembles. To address annotation scarcity, we also introduce TongueAtlas-4K, a comprehensive expert-curated benchmark comprising 4,000 images annotated with 22 diagnostic labels–representing the largest public dataset in tongue analysis. Validation shows our method achieves state-of-the-art performance. While optimized for tongue diagnosis, the framework readily generalizes to broader diagnostic medical imaging tasks.

Zheng Jiang, Wei Wang, Gaowei Zhang, Yi Wang

Sea Surface Temperature (SST) is crucial for understanding upper-ocean thermal dynamics and ocean-atmosphere interactions, which have profound economic and social impacts. While data-driven models show promise in SST prediction, their black-box nature often limits interpretability and overlooks key physical processes. Recently, physics-informed neural networks have been gaining momentum but struggle with complex ocean-atmosphere dynamics due to 1) inadequate characterization of seawater movement (e.g., coastal upwelling) and 2) insufficient integration of external SST drivers (e.g., turbulent heat fluxes). To address these challenges, we propose SSTODE, a physics-informed Neural Ordinary Differential Equations (Neural ODEs) framework for SST prediction. First, we derive ODEs from fluid transport principles, incorporating both advection and diffusion to model ocean spatiotemporal dynamics. Through variational optimization, we recover a latent velocity field that explicitly governs the temporal dynamics of SST. Building upon ODE, we introduce an Energy Exchanges Integrator (EEI)-inspired by ocean heat budget equations-to account for external forcing factors. Thus, the variations in the components of these factors provide deeper insights into SST dynamics. Extensive experiments demonstrate that SSTODE achieves state-of-the-art performances in global and regional SST forecasting benchmarks. Furthermore, SSTODE visually reveals the impact of advection dynamics, thermal diffusion patterns, and diurnal heating-cooling cycles on SST evolution. These findings demonstrate the model's interpretability and physical consistency.

Chang Huang, Zhou Zhexin, Jun Ma, Jiatong Shen, Peixuan Xiong, Huayong Yang, Kaishun Wu

Clear and high-quality underwater images are essential for marine applications, including autonomous navigation, ecological monitoring, and infrastructure inspection. However, underwater images typically suffer from severe colour distortion, low contrast, and diminished structural visibility due to wavelength-dependent attenuation, scattering, and uneven illumination conditions. Recent deep learning-based underwater image enhancement (UIE) methods primarily adopt end-to-end frameworks, directly regressing enhanced images from degraded inputs. While these approaches have achieved significant progress, they often lack explicit modeling of the degradation process, leading to limited interpretability and suboptimal recovery of fine-grained details. To address these limitations, we propose DRM-Net, an explicit residual learning framework for UIE. Rather than estimating the enhanced image directly, DRM-Net first predicts a pixel-wise Degradation Residual Map (DRM) in the perceptually uniform CIELab colour space. This map explicitly quantifies local colour, contrast, and structural degradations, thereby enabling the network to precisely reconstruct missing visual information. Furthermore, we design a lightweight Subaquatic Multi-Scale Context Fusion module, which utilizes parallel atrous convolutions with softmax-weighted feature aggregation, significantly enhancing robustness against spatially heterogeneous scattering. Trained jointly with pixel-wise DRM and VGG-based perceptual losses, DRM-Net achieves superior colour fidelity, perceptual realism, and structural detail recovery. Comprehensive experiments conducted on multiple benchmarks demonstrate that our proposed approach attains competitive quantitative results and superior qualitative visual performance compared to state-of-the-art UIE methods, while maintaining low computational overhead, making it particularly suitable for resource-constrained underwater robotic systems.

Jingyu Hu, Mengyue Yang, Mengnan Du, Weiru Liu

Studies of LLMs’ political opinions mainly evaluate their open-ended responses. Recent work indicates misalignment between LLMs responses and their internal intentions. This motivates us to probe LLMs' internal mechanisms and uncover their internal political states. Additionally, analysis of LLMs' political opinions often relies on single-axis concepts, which can lead to concept confounds. Our work extends this to multi-dimensions and applies interpretable techniques for more transparent LLM political concept learning. Specifically, we designed a four-dimensional political learning framework and constructed a corresponding dataset for fine-grained political concept vector learning. These vectors can detect and intervene in LLM internals. Experiments are conducted on eight open-source LLMs with three representation engineering techniques. Results show these vectors can disentangle political concept confounds. Detection tasks validate the semantic meaning of the vectors and show good generalization and robustness in OOD settings. Intervention experiments show that these vectors can implicitly intervene in LLMs, generating responses with targeted political leanings. These insights reveal the need for more transparent auditing for future AI governance.

Joshua Fan, Haodi Xu, Feng Tao, Md Nasim, Marc Grimson, Yiqi Luo, Carla P. Gomes

Soils have potential to mitigate climate change by sequestering carbon from the atmosphere, but the soil carbon cycle remains poorly understood. Scientists have developed process-based models of the soil carbon cycle based on existing knowledge, but they contain numerous unknown parameters and often fit observations poorly. On the other hand, neural networks can learn patterns from data, but do not respect known scientific laws, and are too opaque to reveal novel scientific relationships. We thus propose Scientifically-Interpretable Reasoning Network (ScIReN), a fully-transparent framework that combines interpretable neural and process-based reasoning. An interpretable encoder predicts scientifically-meaningful latent parameters, which are then passed through a differentiable process-based decoder to predict labeled output variables. While the process-based decoder enforces existing scientific knowledge, the encoder leverages Kolmogorov-Arnold networks (KANs) to reveal interpretable relationships between input features and latent parameters, using novel smoothness penalties to balance expressivity and simplicity. ScIReN also introduces a novel hard-sigmoid constraint layer to restrict latent parameters to prior ranges while maintaining interpretability. We apply ScIReN on two tasks: simulating the flow of organic carbon through soils, and modeling ecosystem respiration from plants. In both tasks, ScIReN outperforms or matches black-box models in predictive accuracy while greatly improving scientific interpretability -- it can infer latent scientific mechanisms and their relationships with input features.

Ahmad Elallaf, Nathan Jacobs, Xinyue Ye, Mei Chen, Gongbo Liang

Roadway traffic accidents represent a global health crisis, responsible for over a million deaths annually and costing many countries up to 3% of their GDP. Traditional traffic safety studies often examine risk factors in isolation, overlooking the spatial complexity and contextual interactions inherent in the built environment. Furthermore, conventional Neural Network-based risk estimators typically generate point estimates without conveying model uncertainty, limiting their utility in critical decision-making. To address these shortcomings, we introduce a novel geospatial deep learning framework that leverages satellite imagery as a comprehensive spatial input. This approach enables the model to capture the nuanced spatial patterns and embedded environmental risk factors that contribute to fatal crash risks. Rather than producing a single deterministic output, our model estimates a full Beta probability distribution over fatal crash risk, yielding accurate and uncertainty-aware predictions--a critical feature for trustworthy AI in safety-critical applications. Our model outperforms baselines by achieving a 17-23% improvement in recall, a key metric for flagging potential dangers, while delivering superior calibration. By providing reliable and interpretable risk assessments from satellite imagery alone, our method enables safer autonomous navigation and offers a highly scalable tool for urban planners and policymakers to enhance roadway safety equitably and cost-effectively.

Mingxuan Cui, Yilan Jiang, Duo Zhou, Cheng Qian, Yuji Zhang, Qiong Wang

Drug shortages pose critical risks to patient care and healthcare systems worldwide, yet the effectiveness of regulatory interventions remains poorly understood due to information asymmetries in pharmaceutical supply chains. We propose ShortageSim, which addresses this challenge by providing the first simulation framework that evaluates the impact of regulatory interventions on competition dynamics under information asymmetry. Using Large Language Model (LLM)-based agents, the framework models the strategic decisions of drug manufacturers and institutional buyers, in response to shortage alerts given by the regulatory agency. Unlike traditional game theory models that assume perfect rationality and complete information, ShortageSim simulates heterogeneous interpretations on regulatory announcements and the resulting decisions. Experiments on self-processed dataset of historical shortage events show that ShortageSim reduces the resolution lag for production disruption cases by up to 84%, achieving closer alignment to real-world trajectories than the zero-shot baseline. Our framework confirms the effect of regulatory alert in addressing shortages and introduces a new method for understanding competition in multi-stage environments under uncertainty. We open-source ShortageSim and a dataset of 2,925 FDA shortage events, providing a novel framework for future research on policy design and testing in supply chains under information asymmetry.