Worked case · Failure and stress · 12 figures

AI failure evaluation

Evaluate AI failure modes before use

Figure 01 / 12

The evaluated population

The evaluated population — AI failure evaluation. Count; one closed observation cohort. Exact values are in the figure data below.
Count; one closed observation cohort

The cohort contains 3,100 evaluation records, of which 372 have the defined synthetic outcome: Critical assistance error. The outcome is known by construction here. In production, label uncertainty and selection must be recorded separately.

Figure data and text version
OutcomeCount
Critical assistance error372
Other labeled outcomes2,728

Average fluency does not measure unsupported claims, instruction misuse, missing evidence, or sensitive-data exposure. Evaluation needs a labeled failure taxonomy tied to the use case.

A polished summary passes review while missing the fact that changes the case disposition.

All amounts, rates, capacity limits, and outcomes in this case are synthetic. The three conditions are separate assumptions for comparison. A better result in the response condition is not measured proof that the proposed control causes that improvement. The figures expose the calculation and its limits; a real deployment needs its own evidence.

Read the result

The rule flags 329 of 3,100 evaluation records. Of those flags, 179 meet the synthetic target, giving 54.41% precision. It misses 193 target events. Under the stated cost assumptions, residual loss and operating friction total $26,191. The important result is the connection between the population, action, capacity, and outcome—not one isolated score.

Model inputs and calculated values

Inputs below are the case-specific values. Each figure states the condition-specific assumptions and units used in its calculation. Calculated values are rounded for display.

InputValue
population3,100
prevalence0.12
severity125
Calculated valueResult
population3,100
positive372
negative2,728
tp179
fp150
fn193
tn2,578
loss24,125
severity125
precision54.41
recall48.12
Figure 02 / 12

Four outcomes of the rule

Four outcomes of the rule — AI failure evaluation. Counts; rows are actual labels, columns are actions. Exact values are in the figure data below.
Counts; rows are actual labels, columns are actions

The rule flags 179 synthetic positives and 150 negatives. It misses 193 positives. A flagged item is a decision to intervene; it is not proof of fraud, a legal prohibition, or any other real-world conclusion.

Figure data and text version
Known outcomeFlaggedNot flagged
Critical assistance error179193
Other outcome1502,578
Figure 03 / 12

Three rates with different denominators

Three rates with different denominators — AI failure evaluation. Rates within this cohort. Exact values are in the figure data below.
Rates within this cohort

Precision is 54.41%, recall is 48.12%, and the false-positive rate is 5.5%. Changing the denominator changes the meaning. This record keeps each numerator attached to the population from which it came.

Figure data and text version
MetricNumeratorDenominatorResult
Precision17932954.41%
Recall17937248.12%
False-positive rate1502,7285.5%
Figure 04 / 12

Precision changes with prevalence

Precision changes with prevalence — AI failure evaluation. Percent; fixed conditional detection rates. Exact values are in the figure data below.
Percent; fixed conditional detection rates

This sensitivity plot holds recall at 48% and false-positive rate at 5.5%, then changes prevalence. It is an algebraic comparison, not a forecast. Even unchanged detection quality can produce a very different review queue when the base rate changes. Horizontal positions are the labeled observations or scenarios; equal spacing does not imply equal numerical increments.

Figure data and text version
Assumed prevalencePrecision %
0.1%0.87
0.5%4.2
1%8.1
2%15.12
5%31.48
10%49.23
Figure 05 / 12

The threshold trade-off

The threshold trade-off — AI failure evaluation. Count in the same cohort. Exact values are in the figure data below.
Count in the same cohort

Six illustrative score bands use a stated pair of detection rates. Lower sensitivity can reduce false alarms but miss more target events. These points do not come from a trained model and do not establish the best operating threshold. Horizontal positions are the labeled observations or scenarios; equal spacing does not imply equal numerical increments.

Figure data and text version
Score bandTrue positivesFalse positives
Band 1365409
Band 2350218
Band 332095
Band 426833
Band 518611
Band 6933
Figure 06 / 12

A transparent loss-and-friction calculation

A transparent loss-and-friction calculation — AI failure evaluation. Illustrative USD; expected cost under stated intervention assumptions. Exact values are in the figure data below.
Illustrative USD; expected cost under stated intervention assumptions

At $125 severity per missed synthetic positive, residual loss is $24,125. Review costs $1,316; lost contribution on false alarms is $750. The calculation assumes intervention prevents all flagged-positive loss and each false alarm loses the stated contribution. Relax those assumptions before applying it to a real policy.

Figure data and text version
Cost componentUSD
Missed-positive loss24,125
Review cost1,316
False-alarm contribution750
Figure 07 / 12

Observed outcomes mature over time

Observed outcomes mature over time — AI failure evaluation. Count; final outcome fixed. Exact values are in the figure data below.
Count; final outcome fixed

The final synthetic positive count is 372. Earlier observations reveal only a stated fraction. Comparing a day-1 cohort with a day-30 cohort would confuse label age with control quality. This curve models observation delay only; it does not change the final outcome. Horizontal positions are the labeled observations or scenarios; equal spacing does not imply equal numerical increments.

Figure data and text version
Days after eventObserved positives
167
3130
7223
14305
30372
Figure 08 / 12

Review demand and available capacity

Review demand and available capacity — AI failure evaluation. Items in the cohort window. Exact values are in the figure data below.
Items in the cohort window

The flag count is 329. The comparison capacity is an illustrative 124 reviews per cohort window. A mathematical rule can be coherent while its resulting workload exceeds the operating team’s capacity. Capacity is not permission to ignore an applicable mandatory control.

Figure data and text version
Queue measureItems
Flagged for review329
Available capacity124
Excess demand205
Figure 09 / 12

A feature is an observation with provenance

A feature is an observation with provenance — AI failure evaluation. Illustrative data contract. Exact values are in the figure data below.
Illustrative data contract

This evidence contract supports evaluate ai failure modes before use. A value needs its event time, arrival time, scope, and source. Keeping unavailable evidence distinct from a measured zero prevents an outage from becoming a falsely reassuring feature.

Figure data and text version
FieldExampleMeaning
entity_refAI failure evaluationSubject of this case
event_time2026-09-18T09:00:00ZWhen the event occurred
received_time2026-09-18T09:00:02ZWhen the system learned it
signal_statuslateEvidence quality, not an outcome
label_definitionCritical assistance errorThe target used in these calculations
Figure 10 / 12

Missing evidence changes the observed population

Missing evidence changes the observed population — AI failure evaluation. Count; each row is the same cohort. Exact values are in the figure data below.
Count; each row is the same cohort

The cells show an explicitly constructed completeness profile for three signal groups. The stress condition removes more history and device evidence. Missingness does not prove the target outcome; it changes what the decision process knows.

Figure data and text version
Signal groupAvailableMissing
Identity evidence2,728372
Activity history2,232868
Context signal1,8601,240
Figure 11 / 12

Evidence, score, and action remain separate

Evidence, score, and action remain separate — AI failure evaluation. Decision lifecycle. Exact values are in the figure data below.
Decision lifecycle

The policy can use evaluate ai failure modes before use only within its approved scope. The action record must retain which evidence was available, which model or rule ran, and which action was actually applied. The final action can differ from the score recommendation when a separate constraint applies.

Figure data and text version
StageRecord
ObserveAI failure evaluation: evidence as of the decision time
EvaluateRule flags 329 of 3,100 evaluation records
ApplyRecord action, reason, owner, and expiry
ReconcileJoin the action to later outcomes without overwriting history
Figure 12 / 12

What the result cannot establish

What the result cannot establish — AI failure evaluation. Interpretation boundary. Exact values are in the figure data below.
Interpretation boundary

Observed classifications do not reveal every counterfactual. The synthetic labels make arithmetic possible, but production decline data is selected by prior policy. Keep measured outcomes, assumed prevention, and unknown alternatives separate when reporting impact.

Figure data and text version
ClaimEvidence in this caseLimit
Detected target179 known synthetic positives flaggedProduction labels may be delayed or wrong
Prevented lossAssumed 22,375 USDRequires an intervention-effect assumption
Customer impact150 synthetic negatives flaggedNot every flag causes abandonment
Unobserved alternativeOutcome without the actionNeeds a valid evaluation design

Connect the result to the system

Test critical omissions and unsupported claims across representative and adversarial records.

Check the population, evidence, permitted action, and actual effect together. A balanced calculation can still use the wrong population; a successful response can still leave an unknown financial outcome. The case’s numerical result applies only to its stated assumptions.

Sources and further reading

The chapter sources support the concepts and scope. They do not prescribe the synthetic model rates.

  1. Federal Reserve SR 26-2: revised model-risk guidance (2026)
  2. NIST: AI Risk Management Framework
  3. NIST: Generative AI Profile, AI 600-1