* **Core Use Case:** **Automated Regulatory Audit.** While traditional audit models provide visibility through coarse data logging, applying this to AI creates a **Privacy Liability Paradox**: the more granular the audit (e.g., logging raw prompts/outputs), the higher the ingestion risk of sensitive PII and proprietary secrets. The **Regulator** requires real-time, cryptographically verifiable proof-of-compliance—demonstrating that: (1) all data ingested into AI systems (training data, Retrieval-Augmented Generation / RAG vector stores) was properly redacted and provenance-verified; (2) every AI interaction across the Enterprise strictly followed mandatory policy (trusted hardware, untampered models, and data residency); all without the liability of raw data ingestion or the exposure of proprietary prompt logic. This supports the reproducibility and documentation principles required by the **Model Risk Management (MRM)** regulatory framework and **Federal Reserve/OCC Supervisory Letter SR 11-7** (Interagency Guidance on Model Risk Management).
0 commit comments