2 posts tagged with "risk"

The demo always works. That is the most expensive sentence in AI product development. The product manager sees the model handle the happy path, the engineer ships the obvious version of the feature, and six weeks later the support queue is full of complaints that the metric did not predict. Nothing in the model regressed. Nothing in the prompt got worse. The feature was simply not the shape the model could do well, and the team did not have a way to say so before the work began.

A meaningful fraction of shipped AI features fail this way — not because the model is bad, but because the task is wrong. The output the product needs is deterministic and the engine is stochastic. The user's tolerance for the tail is one bad answer per thousand and the model's failure distribution is heavier than that. The latency budget the unit economics require is half of what the model can deliver at any tier you can afford. The ground truth required to evaluate quality does not exist and cannot be cheaply created. None of these are model problems. They are task-shape problems, and they should have been screened before the first prompt was written.

GPT-4 reproduced exact passages from books in 43% of test prompts when asked to continue a given excerpt. In one 2025 study, researchers extracted nearly an entire book near-verbatim from a production LLM — no jailbreaking required, just a persistent prefix-feeding loop. If your product generates content using a language model, the copyright exposure is not a future risk. It is happening in your users' sessions today, and you probably have no instrumentation to catch it.

This is not primarily a legal article. It's an engineering article about a legal problem that engineering decisions either create or contain. Lawyers will tell you what constitutes infringement. This framework tells you where your system leaks, how to measure it, and what actually reduces risk versus what only looks like it does.