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    Home»Fintech»What Are Liquid Neural Networks? The Next Big Leap in Adaptive AI: By Raktim Singh
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    What Are Liquid Neural Networks? The Next Big Leap in Adaptive AI: By Raktim Singh

    FintechFetchBy FintechFetchAugust 4, 2025No Comments8 Mins Read
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    Liquid Neural Networks: The Next Step in Making AI That Thinks Like a Brain


    What if AI could keep learning like a human brain, in new conditions even after it was used, deployed & put to use in real life?


    A Liquid Neural Network (LNN) is a new type of artificial intelligence model that
    can continuously learn and adapt in real time — even after it’s been deployed, much like how the human brain learns from experience. A new kind of AI model that is very small and flexible and changes in ways that are quite similar to how people
    do.

    MIT’s research labs were the first to create LNNs. Now, big internet companies, robotics teams, and financial entrepreneurs are all interested in them. 

    In a big sense, these networks revolutionize how smart systems may learn, grow, and respond in real time.

    This article will explain what Liquid Neural Networks are, why they are significant, who is using them, and how they could transform the way banks, IT companies, and students do their jobs.

    What does it mean for a neural network to be “liquid”?

    You might know about AI models; however, Liquid Neural Networks are not the same.

    Neural networks that are based on the old way only learn once and don’t change.

    LNNs, on the other hand, keep learning and altering even after they are used. 

    They change as soon as they learn something new, have to deal with something unexpected, or move to a new place. The “settings” of the neurons change all the time. Instead, it changes all the time based on what it learns over time.

    Differential equations power these networks, which is more like how real neurons in our brains work than just using layers and weights.

    LNNs are like computer brains that evolve and expand depending on their environment, just like people do.

    💡 Why Liquid Neural Networks Are So Important

    AI that follows rules works best in environments that don’t change. But what about in real life? It isn’t stable at all.

    AI that can think on its feet is needed for today’s situations, like a drone flying through severe weather or a fraud detection system that watches for trends that change quickly. 

    That’s when LNNs come in.

    This is why they are important:

    Flexibility: They can quickly respond to new or unexpected information, which is perfect for robotics, self-driving cars, and financial systems.

    LNNs are light, which implies they don’t need as much memory or computing power. This makes them great for smartphones and other edge devices.

    They learn in modest steps, so they don’t have to start over every time the environment changes.

    Biologically Inspired: LNNs are based on how neurons in the human brain develop over time, using equations that work all the time. This is not the same as static models.

    ✅ Who is using LNNs right now?

    The Computer Science and Artificial Intelligence Lab at MIT is called CSAIL.

    The first paper about LNNs was “Liquid Time-Constant Networks” by Ramin Hasani in 2021 at MIT. It showed that LNNs could do better than regular models at tasks that need to be adaptable and don’t utilize a lot of memory. 

    Robots and Drones

    Some robotics teams are already using LNNs to allow drones to adjust their flight paths in real time without having to connect to the internet. This enables them to work well in locations that change quickly, like cities, disaster zones, or forests.

    �� New Health Care Businesses

    LNNs are compact and flexible, so wearables that keep track of health data in real time, including heart rate or oxygen levels, can now update their alerts based on changes that weren’t planned.

    Fintech Research Labs is looking into LNNs for real-time fraud detection and algorithmic trading. LNNs provide you an edge because these systems need to change when market conditions or threat patterns do.

    🤔 Who else should be paying attention?

    Students �� use Raspberry Pi or Arduino to develop creations that are smart and can change.

    Learn about the newest research on systems that help with real-time learning.

    You don’t need a lot of cloud resources to learn how to use machine learning.

    Companies that manufacture tech: 

    Make AI tools that are faster, lighter, and don’t need to be stored in the cloud.

    Items that change based on how people use them over time should be released.

    LNNs can enable robots, smart devices, and automation to make decisions more quickly and with more information.

    �� Banks and Other Financial Institutions

    To counter fraud, use models that evolve when new ways to attack come out.

    Let trading models work in real time without needing to be retrained all the time.

    Make sure that the experiences you give your consumers are right for them.

    How do neural networks in liquid form work? (No Jargon, I Promise) Let’s make things easier.

    In a conventional neural network, the “neurons” make decisions based on rules that were set up during training. The model will always act the same way after it is taught, no matter how the world changes.

    That’s not how Liquid Neural Networks work.

    They use nonlinear ordinary differential equations (ODEs) to show how each neuron works. Each neuron has its own “liquid time constant,” which tells it how quickly to react to new information.

    You could conceive of it this way: Traditional AI is like a calculator: it’s fast but can’t change.


    LNNs are slow at first, just like your brain, but they can change, pay attention, and keep learning.

    The Good and things to watch out for ‘Liquid Neural Networks’

    ✔ Pros 

    1. You don’t have to retrain; you can learn new things all the time. 

    2. Great for phones, drones, wearables, and other devices on the edge. 

    3. Light and healthy for the planet 

    4. Very good at adapting to real-life conditions 

    Things to Watch out for 

    1. People need to modify the way they think about deep learning. 

    LNNs are not usually necessary for simple or unchanging tasks 

    2. It could be harder to set up and change initially. 

    LNNs in Action in the Real World:

    Drones change their flight paths in the air when it’s windy, or they don’t know where they are.

    Wearable health gadgets that keep track of vital signs and changes in real time.

    Finance software can discover new types of fraud as they arise, so you don’t have to retrain it.

    Robots that can navigate through tough terrain or respond to changing conditions.

    🔮 What will happen to liquid neural networks in the future?


    LNNs are still new, but they have a lot of promise.

    More sophisticated AI on devices: Apps and wearables that can learn from you even when you’re not connected to the internet.

    Self-driving cars make choices in real time based on changes in the weather, including when it rains, fogs, or there are sudden obstacles.

    Edge AI is what makes smart farming and automating factories possible.

    Sustainable AI: Smaller models use less energy, which is good for the planet.

    LNNs may be a step toward Artificial General Intelligence (AGI) because they work like real brains.

    As these networks develop better, we might find more links between AI and neurology that help robots learn and think more like people.

    🚀 How to Start Learning About Liquid Neural Networks


    Want to get your hands dirty? This is how:

    If you want to read the original MIT study, search for “Liquid Time-Constant Networks by Hasani et al. 2021.”

    Take a look at the ODE libraries for PyTorch. They’re ideal for building and evaluating neuron models that change over time.

    Edge AI hardware is a solid choice. You can run LNNs on a Raspberry Pi or NVIDIA Jetson Nano for testing that happens in real time and consumes less electricity.

    Conclusion : 

    Liquid Neural Networks aren’t just a new buzzword; they redefine the way we think about what it means to be smart.

    They keep learning.

    They adapt to fit in with their surroundings.

    They do more with less.

    And they help AI think more like us.

    They’re a fresh area for kids to come up with innovative ideas.

    They provide firms a chance to build technology that is smarter, faster, and more useful.


    With their cooperation, scientists might be able to build machines that can learn for the rest of their lives.

    Liquid Neural Networks could be the brains behind the next great AI breakthrough as the world pushes toward AI that works in real time on devices.



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