---
id: "action-escalation-rules"
type: "action-item"
source_timestamps: ["§ What Leaders Should Do", "¶18"]
tags: ["risk-management", "compliance"]
related: ["claim-latent-ai-errors", "concept-deliberate-inefficiency", "framework-ai-accountability", "question-insurance-pricing"]
action: "Create policies where repeated AI failures trigger higher review requirements and structured postmortems."
outcome: "Makes AI negligence financially punitive, incentivizing the retention of human expertise."
speakers: ["Chengwei Liu", "Balázs Kovács"]
sources: ["futures"]
sourceVaultSlug: "hbr-seg-futures"
originDay: 2
articleStem: "hbr-cl-84-big-tech-capability-crisis"
sourceUrl: "https://hbr.org/2026/06/big-techs-looming-capability-crisis"
sourceTitle: "Big Tech’s Looming Capability Crisis"
---
# Build Escalation Rules for AI Failures

## Action — Build Escalation Rules for AI Failures

**Do:** Establish policies where repeated AI-related incidents automatically **trigger higher review requirements, mandate senior-level sign-offs, and require structured postmortems**.

**Outcome:** make negligence expensive enough that hiring and training humans stays the economically viable choice — the antidote to [[claim-latent-ai-errors|latent AI errors]] and an instance of [[concept-deliberate-inefficiency|deliberate inefficiency]].

**Step 3** of the [[framework-ai-accountability|mitigation framework]]. The authors expect insurers and regulators to reinforce this by pricing repeated AI failures into cyber-risk premiums — see [[question-insurance-pricing]].