The Institutional Blind Spot: Why Oversight Fails in AI-Driven Environments: Part IV

The previous article showed how inferential systems reshape decision chains once they become embedded in operational environments. That transformation revealed a deeper truth: the fragility introduced by these systems is not a technical issue. It is a structural issue. Institutions continue to evaluate AI using categories, tools, and frameworks designed for deterministic architectures—systems whose behavior is predictable, proportional, and transparent. Inferential systems do not behave this way. This fourth article examines why existing governance mechanisms break down when applied to inferential architectures.

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