A company deploys an AI model for fraud detection in online transactions.

When an AI system causessignificant false positives, especially in sensitive contexts likefraud detection, the priority is tohalt harmful activityand perform a full assessment. Continued use without understanding the fault may cause furthercustomer harmand legal exposure.

From theAI Governance in Practice Report 2024:

“Incident management plans should enable identification, escalation, and system rollback to prevent continued harm from malfunctioning AI systems.” (p. 12, 35)