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An event in which an AI system produces outputs or takes actions that cause harm, near-miss harm, or significant unexpected behavior. AI incidents range from minor (a chatbot gives an unhelpful answer) to severe (an AI medical system recommends a dangerous drug interaction). Under the EU AI Act, providers of high-risk AI systems must report serious incidents to market surveillance authorities, generally not later than 15 days after becoming aware of them (Article 73). Maintaining an internal AI incident log, even before legal requirements apply, enables pattern identification, demonstrates due diligence, and prepares organizations for regulatory reporting obligations.
Why this matters for your team
An incident log is one of the simplest and highest-value AI governance investments. Every time an AI tool produces unexpected or harmful output, log it — even if you handled it quickly. The log is your evidence of due diligence, your source of pattern detection, and your regulatory reporting head start.
An AI scheduling system double-books a critical team member for two client calls simultaneously due to a timezone parsing error. This is an AI incident — logged with the date, tool, what happened, business impact, and what was done to prevent recurrence.