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Accuracy and trust

What happens when AI gets it wrong, and who carries it

The business carries it. An output sent in your name is yours, whatever produced it, and no supplier arrangement shifts that. So the useful question is not whether these systems make mistakes, which they do, but which mistakes your process would catch and which would go out of the door unnoticed.

Last checked 20 September 2026

These systems fail differently from software #

Ordinary software fails loudly. A field is empty, a total does not add up, a job stops and somebody gets an error. You find out because the failure announces itself.

A language model does not have that property. It produces the most plausible continuation of what it was given, and a wrong answer is manufactured by exactly the same process as a right one. The result is fluent, correctly formatted, appropriately detailed, and sometimes entirely invented.

The ICO is unusually direct about the consequence. It describes statistical accuracy as how often a system guesses the correct answer against correctly labelled test data, and says plainly that a system does not need to be one hundred per cent statistically accurate to comply with the accuracy principle. It advises that records should show outputs for what they are.

statistically informed guesses rather than facts
ICO, What do we need to know about accuracy and statistical accuracy?

A regulator telling you to write down that the output is a guess is a regulator describing the failure mode accurately.

The four ways it actually goes wrong in a business #

Failure What it looks like How it usually surfaces
Invention A detail that was never in the source: a date, a reference, a clause, a name The recipient queries it, which means it has already gone out
Misreading The right fact taken from the wrong record, or the wrong one of two similar records Rarely. It is internally consistent, so it reads as correct to everyone
Confident omission A summary that quietly drops the exception, the caveat or the one line that mattered Later, when somebody relies on the summary rather than the original
Drift Output that was fine for months and is now subtly different in tone or shape Only if someone is still looking, which by month six usually nobody is

Notice that only the first of those is the failure people worry about, and it is the one most likely to be caught. The middle two are the expensive ones, because they produce work that passes a glance.

Who carries the consequence #

Three things are worth being blunt about.

  • A message sent in your name is yours

    Your client, your customer, your regulator. The chain of how it was produced is of no interest to the person who received it.

  • Professional and statutory duties do not move

    Supervision, record keeping and data protection obligations sit with the business and its people. A supplier arrangement allocates work, not accountability.

  • Some decisions have their own rules

    Where a decision is made solely by automated means and has a legal or similarly significant effect on someone, UK GDPR restricts it outright, permits it only in defined circumstances, and requires safeguards including the ability for the person to obtain human intervention, express a view and challenge the outcome. Screening, scoring, pricing and declining people are the shapes to watch for.

When a mistake becomes a reportable one #

Most errors are just errors: an awkward email, a correction, a slightly embarrassing phone call. A smaller set is different, because personal data went somewhere it should not have. That is a personal data breach whether the cause was a person, a spreadsheet or a model.

The ICO's position is that you assess the likely risk to people's rights and freedoms, and where that risk is likely you notify as soon as possible and where feasible within 72 hours. Where the risk to people is high, they have to be told without undue delay too. The ICO explicitly advises reporting early and updating later rather than waiting until you have the full picture.

The practical consequence for a business is that the 72 hours starts when you become aware, so a process that only notices problems at the end of the month is not a process that can meet it.

What reduces this, without pretending to eliminate it #

Nobody can promise a system that does not make mistakes. What is available is a system whose mistakes are cheap.

  • Keep the source next to the output

    A draft that arrives beside the record it was made from can be checked in seconds. One that arrives alone has to be trusted, and it will be.

  • Make the check a real job with a name against it

    A review step that belongs to everybody belongs to nobody, and becomes a formality by week three.

  • Log what went in and what came out

    Without that you cannot answer the only question that matters after something goes wrong, which is how many others were affected.

  • Know what an error costs before you choose where to use it

    Drafting an internal note and issuing a statutory notice are different risk propositions, and the same underlying technology is appropriate for one and not the other.

The part that tells you where to start #

If you are deciding whether to automate a job at all, the consequence of an error is one of the two questions that settles it, alongside how repeatable the job is. Both are covered in which jobs are worth automating, and the regulator's wider position is summarised in what the ICO actually says about AI.

The honest summary is that these systems are useful and unreliable at the same time, and that combination is workable as long as nobody designs around the first half and forgets the second.

Questions people ask

What happens when AI gets something wrong in a business process?
The business carries it. Responsibility for an output sent in your name sits with you, not with the supplier and not with the model, and no arrangement with either moves it. That is the reason the design question is never whether errors happen but where they surface and who sees them first.
Why do the mistakes look so convincing?
Because these systems produce the most plausible continuation rather than a looked up fact. A wrong answer is generated by the same process as a right one, so it arrives with the same confident tone, correct formatting and reasonable detail. Nothing in the output itself signals which kind you are holding.
Does the regulator expect these systems to be perfect?
No. The ICO states directly that an AI system does not need to be one hundred per cent statistically accurate to comply with the accuracy principle. What it expects is that outputs are recorded as statistically informed guesses rather than facts, and that the system is accurate enough for what it is being used for.
What counts as serious enough to report?
If personal data has been disclosed to the wrong person, lost or accessed without authorisation, you have a personal data breach and you must assess the risk to the people affected. Where that risk is likely, the ICO must be told as soon as possible and where feasible within 72 hours. Your business has to make that assessment itself.

Where these numbers come from

  1. ICO, What do we need to know about accuracy and statistical accuracy? , read 20 September 2026 . States that an AI system does not need to be 100 per cent statistically accurate, and that records should show outputs are statistically informed guesses rather than facts.
  2. ICO, Personal data breaches , read 20 September 2026 . Reportable breaches must be notified as soon as possible and where feasible within 72 hours, with affected individuals told without undue delay where the risk to them is high.
  3. ICO, Rights related to automated decision making including profiling , read 20 September 2026 . Article 22 restricts solely automated decisions with legal or similarly significant effects, and requires safeguards including the ability to obtain human intervention and challenge a decision.

Last checked 20 September 2026.

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