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The constraint in the current AI deployment stack is the absence of stronger safeguards. Without these controls in place, the system remains vulnerable to cascading failures that can trigger a furious public backlash.
This backlash carries the risk of regulatory overreaction, a specific unit of friction that drives the long-term economics of the sector.
The mechanism behind this risk is the direct link between a single disaster and the broader legal and public response.
Where this sits in the stack is critical, as the lack of internal safety layers forces the burden of risk management onto external regulators.
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