AI Presentation 2026 - LLM AI Deficits
How the models fail, who absorbs the damage, and who answers for it
1. Where the Damage Lands
This page draws on Global_Liabilities_of_LLM_AIs.docx, which sorts the liabilities
into eight areas and matches them against the benefit list on the previous page.
One pattern runs through all eight. The same low cost that puts a tutor or a translator in
everyone’s hands also puts a forger, a scammer, and a confident wrong answer there. Scale
cuts both ways, and the people who absorb the damage are rarely the people who chose to deploy
the model.
The model writes fluent text whether or not the content is true, and it writes as much of it as
anyone asks for.
details
How LLM output erodes trust
An LLM generates fluent text at near-zero cost. That output takes three
forms: hallucinations, deliberate fabrication, and sheer volume. All three reach the
information environment, where two opposite failures follow: false content is believed, and
true content is dismissed as AI-generated. Trust erodes in both directions.
LLM
Generates fluent text
at near-zero cost
Output
Hallucinations
Confident statements that
are false, worded exactly
like correct ones
Fabrication
Propaganda, scams, fake
reviews, and forged
correspondence
Volume
More content than any
reader or moderator
can check
Information environment
What readers encounter and believe
False content is believed
Readers act on text that
no one checked
True content is dismissed
Anyone waves off a real
document as AI-generated
Trust erodes in both directions
3. Economic Disruption
The work the model does well is work people are paid for today.
details
How LLM capability reaches the labor market
A model performs paid knowledge work. Three effects follow: displacement
of roles, downward pressure on wages, and an entry cost only large firms can meet. All three
act on the labor market and on who owns the tool, producing two results: workers in routine
knowledge jobs absorb the loss first, and ownership concentrates in a few companies.
Model does paid work
Writing, support, translation,
programming, administration
Displacement
Roles in writing, support,
translation, and admin
shrink or disappear
Wage pressure
The same work pays less
once a model writes
the first draft
Entry cost
Only firms that can buy
the computing hardware
can compete
Labor market and ownership
Who does the work, and who owns the tool
Routine work absorbs it
Routine knowledge jobs and
outsourcing economies first
Ownership concentrates
A few companies hold the
hardware and the profit
The gain and the loss land on different people
4. Inequality and Access
The tool reaches the connected first, and it serves them best.
details
Who the models reach, and how well they serve them
Using a model requires means. Three filters apply: a connectivity gap, weaker
performance in lower-resource languages, and training data drawn mostly from Western and
English-language sources. Together they decide who the model serves well, which leaves two
results: the already-connected gain first, and one set of perspectives answers everyone.
Using a model takes means
A connection, a device,
and often a subscription
Connectivity gap
Fast internet, a current
device, and a paid tier
decide who gets in
Language coverage
Models answer worse in
lower-resource languages,
so their speakers get less
Data skew
Training text comes mostly
from Western, English-
language sources
Who the model serves well
Access, language, and whose text it learned from
The connected gain first
The gap widens between
those with means and without
Perspectives narrow
One worldview answers
questions from everywhere
The tool reaches the connected first, and serves them best
5. Bias and Fairness
A model trained on human text repeats what that text contains, including what it gets wrong
about people.
details
How bias in training text reaches people
A model trained on human text absorbs the patterns in that text. Three
consequences follow: it repeats stereotypes, institutions apply it to decisions about hiring,
lending, policing, and benefits, and billions of people receive advice from the same few
models. The results are unfair outcomes at scale and a flattening of culture.
Trained on human text
The model absorbs the patterns
that text already contains
Stereotypes repeat
The model restates what
its sources assumed
about people
Applied to decisions
Hiring, lending, policing,
and benefits reviews use
the output
One source, many users
Billions of people read
writing and advice from
the same few models
Decisions and culture
What institutions decide, and how people write
Unfair outcomes at scale
One biased pattern decides
thousands of cases
Culture flattens
Advice and prose converge
on one house style
Bias in the data becomes bias in the decision
6. Security and Misuse
The model lowers the effort an attack takes, which raises the number of people who can mount
one.
details
How models lower the cost of an attack
A model lowers the effort an attack takes. Three effects follow: fraud becomes
personalized and cheap, writing malware demands less skill, and people seeking dangerous
technical information get further than they would alone. The attack surface grows in two
directions: more people can attack, and each attacker reaches more targets.
Effort drops
The model does the writing
and the technical work
Personalized fraud
Phishing and social
engineering, each message
written for its target
Lower skill barrier
Writing malware and
mounting cyberattacks
takes less expertise
Dangerous know-how
Seekers get further than
they would alone, which is
why firms add safeguards
Attack surface
Who can attack, and how many they can reach
More attackers
Skills that gated the work
no longer gate it
More targets each
One operator sends
thousands of tailored lures
Effort falls, so volume rises
7. Privacy and Data Rights
Text entered into a prompt leaves the user’s control, and text used in training mostly
arrived without permission.
details
How text leaves its owner's control
Text reaches a model from two directions: what users type into prompts and
what companies gather for training. Prompt text gets stored and sometimes exposed, training
text arrives without clear consent, and a model that reads quickly makes profiling easier.
Two results follow: exposure of private material and unsettled ownership.
Text enters the model
From what users type and
from what firms collect
Prompt data
Personal and company
text gets stored, and
sometimes exposed
Training data
Copyrighted and personal
material, gathered without
clear consent
Reading at scale
A model works through
volumes of text that no
staff could review
Control over your own text
Who holds it, who may use it, and for what
Exposure
Private material surfaces,
and profiling gets cheaper
Ownership unsettled
Courts have not decided
who owns what
Text leaves its owner’s hands from both directions
8. Environmental and Resource Costs
The models run in buildings that consume power and water in the places that host them.
details
What running the models costs physically
The models run in data centers. Those buildings draw electricity for training
and for answering questions, consume water for cooling, and fill with hardware that must be
manufactured and later discarded. The load falls on host communities and the local grid, so
the cost is local while the benefit is global, and the waste outlives the model.
Models run in buildings
Data centers sited for power,
not for proximity to users
Electricity
Training a model and
answering each question
both draw power
Water and grid
Cooling consumes water,
and the load strains the
local supply
Hardware
Manufacturing the chips
carries its own cost, and
they end as e-waste
Host communities and the grid
The places that supply the power and the water
Local cost, global benefit
Neighbors carry the load
for users everywhere
Waste outlives the model
Retired hardware remains
after the model is replaced
The computing has a physical address
9. Human and Social Effects
A tool that answers for you can take the practice away from you.
details
What people stop doing when the model does it
The model answers in place of the user. Skills that go unexercised weaken,
students and professionals submit work they do not fully understand, and some users form
emotional dependence on a chatbot. Two results follow: capability erodes, and human contact
narrows.
The model answers for you
Drafting, reasoning, and
company on demand
Skills go unused
Writing, research, and
critical thinking need
practice to hold
Unexamined work
Students and professionals
submit output they do not
fully understand
Dependence
Some users rely on a
chatbot for company,
not just for answers
What people stop practicing
The work, the judgment, and the conversation
Capability erodes
The skill to check the
output fades with it
Contact narrows
Lonely and vulnerable users
see fewer people
Convenience now, capability later
10. Governance and Accountability
When a model causes harm, no one has settled who answers for it.
details
Why harm from a model is hard to assign
When a model causes harm, responsibility sits somewhere between the developer,
the company that deployed it, and the user. Regulation varies by country and trails the
technology, and auditing is hard because the builders cannot fully explain a given answer.
The result is an accountability gap: no one is liable by default, and an audit cannot settle
it.
A model causes harm
Bad advice, a wrong decision,
a loss someone has to carry
Three candidates
The developer, the firm
that deployed it, or the
user who acted on it
Patchwork rules
Regulation differs by
country and arrives after
the technology
Opaque systems
The builders cannot fully
explain why a model gave
the answer it gave
Accountability gap
No settled answer to who owes the injured party
Liability falls through
Each party points to the
other two
Audits fall short
A review cannot recover
why the output appeared
Harm arrives before the rules do
11. What Reduces the Risk
The source document ends on a qualified note: safeguards, regulation, transparency, and human
oversight each cut these risks. How much they cut depends on how the technology is deployed,
which returns the question to the people doing the deploying.
AI Presentation 2026 • LLM AI Deficits