7 papers
Insuring the Fallback: Capital, Monitoring, and the Certification of Preserved Human Capability under Improving AI
Andreas Bauer
When generative AI makes the deliverable uninformative, a professional-services provider can still certify the preserved human capability to catch the machine's errors, through a l…
Doctrine as a Fixed Point: A Formal Model of the Enforceable Penalty Ceiling when Human Oversight of AI Must Remain Effective
Andreas Bauer
Article 14 of the EU AI Act requires that a high-risk system be overseen by natural persons who understand its limits, remain alert to automation bias, and can disregard or overrid…
The Last Costly Signal: How Generative AI Collapses Competence Signaling and Why Liability Sustains Markets for Expert Services
Andreas Bauer
Generative artificial intelligence has reduced the cost of producing convincing artifacts of expertise-reports, analyses, proposals-to nearly zero. Signaling theory predicts that s…
The Fallback as Signal: Preserved Human Skill, Liability, and Competence Signaling in Credence-Good Markets under Improving AI
Andreas Bauer
Providers deploying imperfect AI must decide how much to keep humans engaged: engagement costs output but builds the fallback skill needed when it fails. A liability pledge whose e…
Three Ceilings: Model Monoculture, Solvency, and the Penalty Doctrine in Markets for Expert Services
Andreas Bauer
When generative AI drives the marginal cost of a persuasive expert artefact toward zero, production-cost signals of competence collapse and outcome-contingent liability commitments…
The Institutional Window: Occupation- and Jurisdiction-Specific Calibration of Liability Signaling for Preserved Human Fallback Capability
Andreas Bauer
Generative AI makes expert output uninformative about the human fallback capability its provider keeps in reserve. A liability commitment can signal that capability: a provider who…
Volatility in the Relative Standard Deviation of Target Fulfilment as Key Performance Indicator (KPI)
Andreas Bauer, Jasna Omeragic
In this study, we identify the relative standard deviation volatility (RSD volatility) in the individual target time fulfilment of the complete set of comparables (e.g., all indivi…