The Hallucination Defense

“The AI hallucinated. I never asked it to do that.” That’s the defense. And here’s the problem: it’s often hard to refute with confidence. A financial analyst uses an AI agent to “summarize quarterly reports.” Three months later, forensics discovers the M&A target list in a competitor’s inbox. The agent accessed the files. The agent sent the email. But the prompt history? Deleted. The original…