SOURCE Solving_the_AI_Liability_Trap.png
MD5 84650551 · made 2026-06-13 · NotebookLM infographic · OCR tesseract 5.5.1

The Al Liability Trap: Is Your “Oversight” Actually Evidence?
Ce oe aca ones ps eet COMPARISON: OVERSIGHT EFFECTIVENESS

Exclusions

POLICY Insurers (ISO) are
filing absolute Al
exclusions because
they won't cover & SOFTWARE-BASED HARDWARE-ANCHORED
= what they can’t MONITOR (ACRV)
measure. r —Y
FAILURE DOMAIN: FAILURE DOMAIN:

Shared with Al Independent

ie i Legal doctrines now bind individual o
The Failure Domain Trap officers personally to the duty of (Vulnerable) (Outside the Stack)
oversight for mission-critical Al. LEGAL DEFENSE: LEGAL DEFENSE:
Weak (“Circular Strong
Reporting”) (“Independent Witness")

A software dashboard

E watching a software agent MEASUREMENT: MEASUREMENT:
mei is circular reporting and Self-reported Logs Physical Silicon Execution
constitutes legal “bad faith”.

SOFTWARE
DASHBOARD
WATCHING
SOFTWARE
AGENT

THE SOLUTION:
HARDWARE-LEVEL GOVERNANCE

Position IS Meaning The T.J. Hooper Precedent

Anchor Oversight in Physics

USE PMUs (PERFORMANCE
MONITORING UNITS) TO MEASURE
PHYSICAL EXECUTION PATHS

Mapping semantic intent to Using flawed software once superior
geometric paths on the chip creates hardware-level witnesses exist is
a "silicon-grounded notary" defined as willful negligence

A) NotebookLM