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Why "The AI Hallucinated" is the perfect legal defense

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Why logs make 'The AI Did It' the perfect excuse

“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 instruction? The analyst’s word against the logs.

Without a durable cryptographic proof binding the human to a scoped delegation, “the AI did it” becomes a convenient defense. The agent can’t testify. It can’t remember. It can’t defend itself.

Logs Aren’t Proof

“But we log everything. We have OAuth logs.”

Most production agent systems do log a lot, and that’s good practice. Logs give visibility into what happened, when, and which component did it:

2026-01-15T14:32:01Z agent=research-bot action=file_read path=/data/ma/target-corp.pdf 2026-01-15T14:32:03Z agent=research-bot action=email_send [email protected]

With the right setup (append-only storage, signed timestamps, retention controls), logs can be tamper-evident. They can be excellent evidence that an event occurred inside your system.

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