Tackling the Noisy Elephant in the Room: Label Noise-robust Out-of-Distribution Detection via Loss Correction and Low-rank Decomposition

Robust out-of-distribution (OOD) detection is an indispensable component of modern artificial intelligence (AI) systems, especially in safety-critical applications where models must identify inputs from unfamiliar classes not seen during training. While OOD detection has been extensively studied in the machine learning literature—with both post hoc and training-based approaches—its effectiveness under noisy training labels remains underexplored. Recent studies suggest that label noise can significantly degrade OOD performance, yet principled solutions to this issue are lacking. In this work, we demonstrate that directly combining existing label noise-robust methods with OOD detection strategies is insufficient to address this critical challenge. To overcome this, we propose a robust OOD detection framework that integrates loss correction techniques from the noisy label learning literature with low-rank and sparse decomposition methods from signal processing. Extensive experiments on both synthetic and real-world datasets demonstrate that our method significantly outperforms the state-of-the-art OOD detection techniques, particularly under severe noisy label settings.