The Collapse of Supervision - V1.0

This paper develops a dynamic theory of human–AI supervision in high-reliability systems. Building on the human–AI contracting framework of Bastani and Cachon (2025), it introduces time and attention as endogenous state variables governing the feasibility of oversight. The core result is that supervision collapses dynamically even under incentive-compatible contracts. As AI systems become increasingly reliable, failures occur too infrequently to replenish human attention, causing the effective cost of inspection to grow endogenously over time. Monitoring therefore persists in form but not in substance. The analysis further shows that holding mean reliability constant, clustered failures can sustain supervision by restoring informational salience. This result reframes the apparent preference for imperfect systems as a temporal coordination mechanism rather than a behavioral anomaly. More broadly, the paper characterizes institutional failure as a temporal mismatch between continuous machine operation, linear institutional time, and rhythmic human cognition. The findings have implications for AI governance, organizational design, and contract theory, suggesting that effective oversight requires temporal structuring rather than stronger incentives alone.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-01-08
DOI
https://doi.org/10.5281/zenodo.18181019
Primary Topic
Ethics and Social Impacts of AI
Type
article
Field-Weighted Citation Impact
0.00
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article

The Collapse of Supervision - V1.0

Wong Eunice
Zenodo (CERN European Organization for Nuclear Research)
Ethics and Social Impacts of AI
article

The Collapse of Supervision - V1.0

Wong Eunice
article en

Abstract

This paper develops a dynamic theory of human–AI supervision in high-reliability systems. Building on the human–AI contracting framework of Bastani and Cachon (2025), it introduces time and attention as endogenous state variables governing the feasibility of oversight. The core result is that supervision collapses dynamically even under incentive-compatible contracts. As AI systems become increasingly reliable, failures occur too infrequently to replenish human attention, causing the effective cost of inspection to grow endogenously over time. Monitoring therefore persists in form but not in substance. The analysis further shows that holding mean reliability constant, clustered failures can sustain supervision by restoring informational salience. This result reframes the apparent preference for imperfect systems as a temporal coordination mechanism rather than a behavioral anomaly. More broadly, the paper characterizes institutional failure as a temporal mismatch between continuous machine operation, linear institutional time, and rhythmic human cognition. The findings have implications for AI governance, organizational design, and contract theory, suggesting that effective oversight requires temporal structuring rather than stronger incentives alone.

Zenodo (CERN European Organization for Nuclear Research)
University of Global Health Equity (RW), Foresight Project (US)
Openalex Percentile: Top 94%
Ethics and Social Impacts of AI
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