New method identifies the root causes of statistical outliers

Amazon ICML paper proposes information-theoretic measurement of quantitative causal contribution.

Outliers are rare observations where a system deviates from its usual behavior. They arise in many real-world applications (e.g., medicine, finance) and present a greater demand for explanation than ordinary events. How can we identify the "root causes" of outliers once they are detected?

The problem of outliers is one of the oldest problems in statistics. It has been the subject of academic investigation for more than a century. Although a lot has been done on detecting outliers, a formal way to define the “root causes” of outliers has been lacking.

This week, at the International Conference on Machine Learning (ICML), we are presenting our work on identifying the root causes of outliers. Our first task was to introduce a formal definition of “root cause”, because we were not able to find one in the academic literature.

Related content
New features go beyond conventional effect estimation by attributing events to individual components of complex systems.

Our definition includes a formalization of the quantitative causal contribution of each of the root causes of an observed outlier. In other words, the contribution describes the degree to which a variable is responsible for the outlier event. This also relates to philosophical questions; even the purely qualitative question of whether an event is an “actual cause” of others is an ongoing debate among philosophers.

Our approach is based on graphical causal models, a formal framework developed by Turing Award winner Judea Pearl to model cause-effect relationships between variables in a system. It has two key ingredients. The first is a causal diagram, which visually represents the cause-effect relationships among observed variables, with arrows from the nodes representing causes to the nodes representing effects. The second is a set of causal mechanisms, which describe how the values of each node are generated from the values of its parents (i.e., direct causes) in the causal diagram.

Imagine, for instance, a retail website powered by distributed web services. A customer experiences an unusually slow loading time. Why? Is it a slow database in the back end? A malfunctioning buying service?

Dependencies, latency, questions.png
At left, we have the dependencies between the distributed web services that power a simple hypothetical retail website. In the middle, a customer (with ID 5) experiences a very slow loading time. Our goal is to identify its root causes among the distributed services (right).

There exist many outlier detection algorithms. To identify the root causes of outliers detected by one of these algorithms, we first introduce an information-theoretic (IT) outlier score, which probabilistically calibrates existing outlier scores.

Our outlier score relies on the notion of the tail probability — the probability that a random variable exceeds a threshold value. The IT outlier score of an event is the negative logarithm of the event’s tail probability under some transformation. It is inspired by Claude Shannon’s definition of the information content of a random event in information theory.

The lower the likelihood of observing events more extreme than the event in question, the more information that event carries, and the larger its IT outlier score. Probabilistic calibration also renders IT outlier scores comparable across variables with different dimension, range, and scaling.

Counterfactuals

To attribute the outlier event to a variable, we ask the counterfactual question “Would the event not have been an outlier had the causal mechanism of that variable been normal?” The counterfactuals are the third rung on Pearl’s ladder of causation and hence require functional causal models (FCMs) as the causal mechanisms of variables.

Related content
New method goes beyond Granger causality to identify only the true causes of a target time series, given some graph constraints.

In an FCM, each variable Xj is a function of its observed parents PAj (with direct arrows to Xj) in the causal diagram and an unobserved noise variable Nj. As root nodes — those without observed parents — have only noise variables, the joint distribution of noise variables gives rise to the stochastic properties of observed variables.

The unobserved noise variables play a special role: we can think of Nj as a random switch that selects a deterministic function (or mechanism) from a set of functions Fj defined from direct causes PAj to their effect Xj. If, instead of fixing the value of the noise term Nj, we set it to random values drawn from some distribution, then the functions from the set Fj are also selected at random, and we can use this procedure to assign normal deterministic mechanisms to Xj.

Although this randomization operation might seem infeasible if we think of the noise variable as something not under our control — and even worse, not even observable — we can interpret it as an intervention on the observed variable.

Causal circuits.png
On the left, for the observed pair (xj, paj) of variable Xj and its parents PAj, the deterministic mechanism fj(1) of variable Xj is identified by the noise value (Nj = 1) corresponding to the pair (xj, paj). In the middle, a different value of noise (N= n) identifies a counterfactual deterministic mechanism fj(n). On the right, by drawing random samples of the noise term Nj according to some distribution, we assign “normal” deterministic mechanisms to Xj.
Normal causal replacement.png
To attribute the outlier event xn of target variable Xn to a variable Xj, we first replace the deterministic mechanism of Xj by normal causal mechanisms (the orange background indicates the replacement). Then we measure the impact of this replacement on the log tail probability of the outlier event.

To attribute the outlier event xn (of target variable Xn) to a variable Xj, we first replace the deterministic mechanism corresponding to its observation xj by normal mechanisms. The impact of this replacement on the log tail probability defines the contribution of Xj to the outlier event. In particular, the contribution measures the factor by which replacing the causal mechanism of Xj with normal mechanisms (by drawing random samples of the noise Nj) decreases the likelihood of the outlier event. But the contribution computed this way depends on the order in which we replace the causal mechanisms. This dependence on ordering introduces arbitrariness into the attribution procedure.

To get rid of the dependence on the ordering of variables, we take the average contribution over all orderings, which is also the idea behind the Shapley value approach in game theory. The Shapley contributions sum up to the IT outlier score of the outlier event.

To get a high-level idea of how our approach works, consider again the retail-website example mentioned above. Dependencies between web services are typically available as a dependency graph. By inverting the arrows in the dependency graph, we obtain the causal graph of latencies of services. From training samples of observed latencies, we learn the causal mechanisms. The causal mechanisms may also be established directly using subject matter expertise. Our approach uses those to attribute the slow loading time for the specific client to its most likely root causes among the web services.

Causal graph_contributions.png
On the left, we have the causal graph of latencies of services, which is obtained by inverting the arrows of the dependency graph of services. By learning the causal mechanisms of nodes from training data, our approach yields the contributions of each node to the outlier event — here, the unusually high latency of the web service. As the Shapley contributions sum up to the IT outlier score of the outlier event, we are able to show the relative contribution of ancestors — here, the services.

If you would like to apply our approach to your use case, the implementation is available in the “gcm” package in the Python DoWhy library. To get started quickly, you can check out our example notebook.

Research areas

Related content

IN, KA, Bengaluru
Interested to build the next generation Financial systems that can handle billions of dollars in transactions? Interested to build highly scalable next generation systems that could utilize Amazon Cloud? Massive data volume + complex business rules in a highly distributed and service oriented architecture, a world class information collection and delivery challenge. Our challenge is to deliver the software systems which accurately capture, process, and report on the huge volume of financial transactions that are generated each day as millions of customers make purchases, as thousands of Vendors and Partners are paid, as inventory moves in and out of warehouses, as commissions are calculated, and as taxes are collected in hundreds of jurisdictions worldwide. Key job responsibilities • Understand the business and discover actionable insights from large volumes of data through application of machine learning, statistics or causal inference. • Analyse and extract relevant information from large amounts of Amazon’s historical transactions data to help automate and optimize key processes • Research, develop and implement novel machine learning and statistical approaches for anomaly, theft, fraud, abusive and wasteful transactions detection. • Use machine learning and analytical techniques to create scalable solutions for business problems. • Identify new areas where machine learning can be applied for solving business problems. • Partner with developers and business teams to put your models in production. • Mentor other scientists and engineers in the use of ML techniques. A day in the life • Understand the business and discover actionable insights from large volumes of data through application of machine learning, statistics or causal inference. • Analyse and extract relevant information from large amounts of Amazon’s historical transactions data to help automate and optimize key processes • Research, develop and implement novel machine learning and statistical approaches for anomaly, theft, fraud, abusive and wasteful transactions detection. • Use machine learning and analytical techniques to create scalable solutions for business problems. • Identify new areas where machine learning can be applied for solving business problems. • Partner with developers and business teams to put your models in production. • Mentor other scientists and engineers in the use of ML techniques. About the team The FinAuto TFAW(theft, fraud, abuse, waste) team is part of FGBS Org and focuses on building applications utilizing machine learning models to identify and prevent theft, fraud, abusive and wasteful(TFAW) financial transactions across Amazon. Our mission is to prevent every single TFAW transaction. As a Machine Learning Scientist in the team, you will be driving the TFAW Sciences roadmap, conduct research to develop state-of-the-art solutions through a combination of data mining, statistical and machine learning techniques, and coordinate with Engineering team to put these models into production. You will need to collaborate effectively with internal stakeholders, cross-functional teams to solve problems, create operational efficiencies, and deliver successfully against high organizational standards.
IN, KA, Bengaluru
Interested to build the next generation Financial systems that can handle billions of dollars in transactions? Interested to build highly scalable next generation systems that could utilize Amazon Cloud? Massive data volume + complex business rules in a highly distributed and service oriented architecture, a world class information collection and delivery challenge. Our challenge is to deliver the software systems which accurately capture, process, and report on the huge volume of financial transactions that are generated each day as millions of customers make purchases, as thousands of Vendors and Partners are paid, as inventory moves in and out of warehouses, as commissions are calculated, and as taxes are collected in hundreds of jurisdictions worldwide. Key job responsibilities • Understand the business and discover actionable insights from large volumes of data through application of machine learning, statistics or causal inference. • Analyse and extract relevant information from large amounts of Amazon’s historical transactions data to help automate and optimize key processes • Research, develop and implement novel machine learning and statistical approaches for anomaly, theft, fraud, abusive and wasteful transactions detection. • Use machine learning and analytical techniques to create scalable solutions for business problems. • Identify new areas where machine learning can be applied for solving business problems. • Partner with developers and business teams to put your models in production. • Mentor other scientists and engineers in the use of ML techniques. A day in the life • Understand the business and discover actionable insights from large volumes of data through application of machine learning, statistics or causal inference. • Analyse and extract relevant information from large amounts of Amazon’s historical transactions data to help automate and optimize key processes • Research, develop and implement novel machine learning and statistical approaches for anomaly, theft, fraud, abusive and wasteful transactions detection. • Use machine learning and analytical techniques to create scalable solutions for business problems. • Identify new areas where machine learning can be applied for solving business problems. • Partner with developers and business teams to put your models in production. • Mentor other scientists and engineers in the use of ML techniques. About the team The FinAuto TFAW(theft, fraud, abuse, waste) team is part of FGBS Org and focuses on building applications utilizing machine learning models to identify and prevent theft, fraud, abusive and wasteful(TFAW) financial transactions across Amazon. Our mission is to prevent every single TFAW transaction. As a Machine Learning Scientist in the team, you will be driving the TFAW Sciences roadmap, conduct research to develop state-of-the-art solutions through a combination of data mining, statistical and machine learning techniques, and coordinate with Engineering team to put these models into production. You will need to collaborate effectively with internal stakeholders, cross-functional teams to solve problems, create operational efficiencies, and deliver successfully against high organizational standards.
IN, KA, Bengaluru
Amazon Health Services (One Medical) About Us: At Health AI, we're revolutionizing healthcare delivery through innovative AI-enabled solutions. As part of Amazon Health Services and One Medical, we're on a mission to make quality healthcare more accessible while improving patient outcomes. Our work directly impacts millions of lives by empowering patients and enabling healthcare providers to deliver more meaningful care. Role Overview: We're seeking an Applied Scientist to join our dynamic team in building state of the art AI/ML solutions for healthcare. This role offers a unique opportunity to work at the intersection of artificial intelligence and healthcare, developing solutions that will shape the future of medical services delivery. Key job responsibilities • Lead end-to-end development of AI/ML solutions for Amazon Health organization, including Amazon Pharmacy and One Medical • Research, design, and implement state-of-the-art machine learning models, with a focus on Large Language Models (LLMs) and Visual Language Models (VLMs) • Optimize and fine-tune models for production deployment, including model distillation for improved latency • Drive scientific innovation while maintaining a strong focus on practical business outcomes • Collaborate with cross-functional teams to translate complex technical solutions into tangible customer benefits • Contribute to the broader Amazon Health scientific community and help shape our technical roadmap
US, CA, Pasadena
The Amazon Center for Quantum Computing in Pasadena, CA, is looking to hire an Applied Scientist specializing in Mixed-Signal Design. Working alongside other scientists and engineers, you will design and validate hardware performing the control and readout functions for AWS quantum processors. Candidates must have a solid background in mixed-signal design at the printed circuit board (PCB) level. Working effectively within a cross-functional team environment is critical. The ideal candidate will have demonstrated the capability to contribute to all phases of product life cycle development, from requirements gathering to verification. Diverse Experiences Amazon values diverse experiences. Even if you do not meet all of the preferred qualifications and skills listed in the job description, we encourage candidates to apply. If your career is just starting, hasn’t followed a traditional path, or includes alternative experiences, don’t let it stop you from applying. Work/Life Balance We value work-life harmony. Achieving success at work should never come at the expense of sacrifices at home, which is why we strive for flexibility as part of our working culture. When we feel supported in the workplace and at home, there’s nothing we can’t achieve in the cloud. Inclusive Team Culture Here at Amazon, it’s in our nature to learn and be curious. Our employee-led affinity groups foster a culture of inclusion that empower us to be proud of our differences. Ongoing events and learning experiences, including our Conversations on Race and Ethnicity (CORE) and AmazeCon (gender diversity) conferences, inspire us to never stop embracing our uniqueness. Mentorship and Career Growth We’re continuously raising our performance bar as we strive to become Earth’s Best Employer. That’s why you’ll find endless knowledge-sharing, mentorship and other career-advancing resources here to help you develop into a better-rounded professional. Key job responsibilities Our scientists and engineers collaborate across diverse teams and projects to offer state of the art, cost effective solutions for the control of Amazon quantum processor systems. You’ll bring a passion for innovation, collaboration, and mentoring to: Solve layered technical problems, often ones not encountered before, across our hardware stack. Develop requirements with key system stakeholders, including quantum device, test and measurement, and cryogenic hardware teams. Design, implement, test, deploy, and maintain innovative solutions that meet both strict performance and cost metrics. Research enabling control system technologies necessary for Amazon to produce commercially viable quantum computers.
US, MA, Boston
The Artificial General Intelligence (AGI) team is seeking a dedicated, skilled, and innovative Applied Scientist with a robust background in machine learning, statistics, quality assurance, auditing methodologies, and automated evaluation systems to ensure the highest standards of data quality, to build industry-leading technology with Large Language Models (LLMs) and multimodal systems. Key job responsibilities As part of the AGI team, an Applied Scientist will collaborate closely with core scientist team developing Amazon Nova models. They will lead the development of comprehensive quality strategies and auditing frameworks that safeguard the integrity of data collection workflows. This includes designing auditing strategies with detailed SOPs, quality metrics, and sampling methodologies that help Nova improve performances on benchmarks. The Applied Scientist will perform expert-level manual audits, conduct meta-audits to evaluate auditor performance, and provide targeted coaching to uplift overall quality capabilities. A critical aspect of this role involves developing and maintaining LLM-as-a-Judge systems, including designing judge architectures, creating evaluation rubrics, and building machine learning models for automated quality assessment. The Applied Scientist will also set up the configuration of data collection workflows and communicate quality feedback to stakeholders. An Applied Scientist will also have a direct impact on enhancing customer experiences through high-quality training and evaluation data that powers state-of-the-art LLM products and services. A day in the life An Applied Scientist with the AGI team will support quality solution design, conduct root cause analysis on data quality issues, research new auditing methodologies, and find innovative ways of optimizing data quality while setting examples for the team on quality assurance best practices and standards. Besides theoretical analysis and quality framework development, an Applied Scientist will also work closely with talented engineers, domain experts, and vendor teams to put quality strategies and automated judging systems into practice.
US, CA, San Francisco
Amazon launched the AGI Lab to develop foundational capabilities for useful AI agents. We built Nova Act - a new AI model trained to perform actions within a web browser. The team builds AI/ML infrastructure that powers our production systems to run performantly at high scale. We’re also enabling practical AI to make our customers more productive, empowered, and fulfilled. In particular, our work combines large language models (LLMs) with reinforcement learning (RL) to solve reasoning, planning, and world modeling in both virtual and physical environments. Our lab is a small, talent-dense team with the resources and scale of Amazon. Each team in the lab has the autonomy to move fast and the long-term commitment to pursue high-risk, high-payoff research. We’re entering an exciting new era where agents can redefine what AI makes possible. We’d love for you to join our lab and build it from the ground up! Key job responsibilities This role will lead a team of SDEs building AI agents infrastructure from launch to scale. The role requires the ability to span across ML/AI system architecture and infrastructure. You will work closely with application developers and scientists to have a impact on the Agentic AI industry. We're looking for a Software Development Manager who is energized by building high performance systems, making an impact and thrives in fast-paced, collaborative environments. About the team Check out the Nova Act tools our team built on on nova.amazon.com/act
US, CA, Santa Clara
Amazon Quick Suite is an enterprise AI platform that transforms how organizations work with their data and knowledge. Combining generative AI-powered search, deep research capabilities, intelligent agents and automations, and comprehensive business intelligence, Quick Suite serves tens of thousands of users. Our platform processes thousands of queries monthly, helping teams make faster, data-driven decisions while maintaining enterprise-grade security and governance. From natural language interactions with complex datasets to automated workflows and custom AI agents, Quick Suite is redefining workplace productivity at unprecedented scale. We are seeking a Data Scientist II to join our Quick Data team, focusing on evaluation and benchmarking data development for Quick Suite features, with particular emphasis on Research and other generative AI capabilities. Our mission is to engineer high-quality datasets that are essential to the success of Amazon Quick Suite. From human evaluations and Responsible AI safeguards to Retrieval-Augmented Generation and beyond, our work ensures that Generative AI is enterprise-ready, safe, and effective for users at scale. As part of our diverse team—including data scientists, engineers, language engineers, linguists, and program managers—you will collaborate closely with science, engineering, and product teams. We are driven by customer obsession and a commitment to excellence. Key job responsibilities In this role, you will leverage data-centric AI principles to assess the impact of data on model performance and the broader machine learning pipeline. You will apply Generative AI techniques to evaluate how well our data represents human language and conduct experiments to measure downstream interactions. Specific responsibilities include: * Design and develop comprehensive evaluation and benchmarking datasets for Quick Suite AI-powered features * Leverage LLMs for synthetic data corpora generation; data evaluation and quality assessment using LLM-as-a-judge settings * Create ground truth datasets with high-quality question-answer pairs across diverse domains and use cases * Lead human annotation initiatives and model evaluation audits to ensure data quality and relevance * Develop and refine annotation guidelines and quality frameworks for evaluation tasks * Conduct statistical analysis to measure model performance, identify failure patterns, and guide improvement strategies * Collaborate with ML scientists and engineers to translate evaluation insights into actionable product improvements * Build scalable data pipelines and tools to support continuous evaluation and benchmarking efforts * Contribute to Responsible AI initiatives by developing safety and fairness evaluation datasets About the team Why AWS? Amazon Web Services (AWS) is the world’s most comprehensive and broadly adopted cloud platform. We pioneered cloud computing and never stopped innovating — that’s why customers from the most successful startups to Global 500 companies trust our robust suite of products and services to power their businesses. Inclusive Team Culture Here at AWS, it’s in our nature to learn and be curious. Our employee-led affinity groups foster a culture of inclusion that empower us to be proud of our differences. Ongoing events and learning experiences, including our Conversations on Race and Ethnicity (CORE) and AmazeCon conferences, inspire us to never stop embracing our uniqueness. Mentorship & Career Growth We’re continuously raising our performance bar as we strive to become Earth’s Best Employer. That’s why you’ll find endless knowledge-sharing, mentorship and other career-advancing resources here to help you develop into a better-rounded professional. Work/Life Balance We value work-life harmony. Achieving success at work should never come at the expense of sacrifices at home, which is why we strive for flexibility as part of our working culture. When we feel supported in the workplace and at home, there’s nothing we can’t achieve in the cloud. Hybrid Work We value innovation and recognize this sometimes requires uninterrupted time to focus on a build. We also value in-person collaboration and time spent face-to-face. Our team affords employees options to work in the office every day or in a flexible, hybrid work model near one of our U.S. Amazon offices.
US, MA, Boston
The Artificial General Intelligence (AGI) team is seeking a dedicated, skilled, and innovative Applied Scientist with a robust background in machine learning, statistics, quality assurance, auditing methodologies, and automated evaluation systems to ensure the highest standards of data quality, to build industry-leading technology with Large Language Models (LLMs) and multimodal systems. Key job responsibilities As part of the AGI team, an Applied Scientist will collaborate closely with core scientist team developing Amazon Nova models. They will lead the development of comprehensive quality strategies and auditing frameworks that safeguard the integrity of data collection workflows. This includes designing auditing strategies with detailed SOPs, quality metrics, and sampling methodologies that help Nova improve performances on benchmarks. The Applied Scientist will perform expert-level manual audits, conduct meta-audits to evaluate auditor performance, and provide targeted coaching to uplift overall quality capabilities. A critical aspect of this role involves developing and maintaining LLM-as-a-Judge systems, including designing judge architectures, creating evaluation rubrics, and building machine learning models for automated quality assessment. The Applied Scientist will also set up the configuration of data collection workflows and communicate quality feedback to stakeholders. An Applied Scientist will also have a direct impact on enhancing customer experiences through high-quality training and evaluation data that powers state-of-the-art LLM products and services. A day in the life An Applied Scientist with the AGI team will support quality solution design, conduct root cause analysis on data quality issues, research new auditing methodologies, and find innovative ways of optimizing data quality while setting examples for the team on quality assurance best practices and standards. Besides theoretical analysis and quality framework development, an Applied Scientist will also work closely with talented engineers, domain experts, and vendor teams to put quality strategies and automated judging systems into practice.
US, MA, Boston
The Artificial General Intelligence (AGI) team is seeking a dedicated, skilled, and innovative Applied Scientist with a robust background in machine learning, statistics, quality assurance, auditing methodologies, and automated evaluation systems to ensure the highest standards of data quality, to build industry-leading technology with Large Language Models (LLMs) and multimodal systems. Key job responsibilities As part of the AGI team, an Applied Scientist will collaborate closely with core scientist team developing Amazon Nova models. They will lead the development of comprehensive quality strategies and auditing frameworks that safeguard the integrity of data collection workflows. This includes designing auditing strategies with detailed SOPs, quality metrics, and sampling methodologies that help Nova improve performances on benchmarks. The Applied Scientist will perform expert-level manual audits, conduct meta-audits to evaluate auditor performance, and provide targeted coaching to uplift overall quality capabilities. A critical aspect of this role involves developing and maintaining LLM-as-a-Judge systems, including designing judge architectures, creating evaluation rubrics, and building machine learning models for automated quality assessment. The Applied Scientist will also set up the configuration of data collection workflows and communicate quality feedback to stakeholders. An Applied Scientist will also have a direct impact on enhancing customer experiences through high-quality training and evaluation data that powers state-of-the-art LLM products and services. A day in the life An Applied Scientist with the AGI team will support quality solution design, conduct root cause analysis on data quality issues, research new auditing methodologies, and find innovative ways of optimizing data quality while setting examples for the team on quality assurance best practices and standards. Besides theoretical analysis and quality framework development, an Applied Scientist will also work closely with talented engineers, domain experts, and vendor teams to put quality strategies and automated judging systems into practice.
US, MA, Boston
The Artificial General Intelligence (AGI) team is seeking a dedicated, skilled, and innovative Applied Scientist with a robust background in machine learning, statistics, quality assurance, auditing methodologies, and automated evaluation systems to ensure the highest standards of data quality, to build industry-leading technology with Large Language Models (LLMs) and multimodal systems. Key job responsibilities As part of the AGI team, an Applied Scientist will collaborate closely with core scientist team developing Amazon Nova models. They will lead the development of comprehensive quality strategies and auditing frameworks that safeguard the integrity of data collection workflows. This includes designing auditing strategies with detailed SOPs, quality metrics, and sampling methodologies that help Nova improve performances on benchmarks. The Applied Scientist will perform expert-level manual audits, conduct meta-audits to evaluate auditor performance, and provide targeted coaching to uplift overall quality capabilities. A critical aspect of this role involves developing and maintaining LLM-as-a-Judge systems, including designing judge architectures, creating evaluation rubrics, and building machine learning models for automated quality assessment. The Applied Scientist will also set up the configuration of data collection workflows and communicate quality feedback to stakeholders. An Applied Scientist will also have a direct impact on enhancing customer experiences through high-quality training and evaluation data that powers state-of-the-art LLM products and services. A day in the life An Applied Scientist with the AGI team will support quality solution design, conduct root cause analysis on data quality issues, research new auditing methodologies, and find innovative ways of optimizing data quality while setting examples for the team on quality assurance best practices and standards. Besides theoretical analysis and quality framework development, an Applied Scientist will also work closely with talented engineers, domain experts, and vendor teams to put quality strategies and automated judging systems into practice.