AI failure plan for hallucinations
Document AI failure plan for hallucinated AI outputs that cause substantial customer financial loss assigning accountable owners and establishing remediation with third-party support as needed (e.g. legal, PR, insurers)
Control activities
Establishing compensation assessment procedures. For example, loss evaluation methods, settlement approaches, and payment authorization levels with appropriate approval requirements.
Implementing remediation measures. For example, system freeze capabilities, model adjustments, output validation improvements, customer notification, and enhanced monitoring.
Defining hallucination incident types. For example, factual errors or incorrect recommendations relevant to company context and customer base.
Coordinating potential external support. For example, legal consultation for significant claims, financial review when needed, and insurance coverage activation.
Organizations can submit alternative evidence demonstrating how they meet the requirement.
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