The AI Epistemic Trap™: A Strategic Framework for AI Governance under Contested Truth
Abstract
This paper introduces The AI Epistemic Trap™, a strategic framework for AI governance in domains characterized by "Contested Truth." While traditional AI alignment focuses on technical safety, this research addresses the systemic risk of "Epistemic Erasure"—where AI models inadvertently collapse complex human expertise into a single, often incorrect, "Ground Truth." Using a $40M case study of a failed machine learning implementation in a global financial institution, I demonstrate how the divergence ($\Delta E$) between an organization's Strategic Intent and the AI’s Epistemic Framework leads to catastrophic operational failure. The paper provides a five-step protocol for "Epistemic Stress Testing," enabling leaders at the board and executive levels to audit AI systems for framework alignment. This research is essential for organizations deploying AI in high-stakes, expert-driven fields such as finance, healthcare, and strategic policy.
Fields of Study & Subjects
Ethics and Social Impacts of AI
Artificial Intelligence Applications
Information Technology Governance and Strategy
Publication details
- Journal / source
- Zenodo (CERN European Organization for Nuclear Research)
- Publication date
- 9 February 2026
- Document type
- Dataset